ASIC jumps on the AI regulation bandwagon
The corporate regulator has flagged misuse of artificial intelligence by banks and brokers as an enforcement priority. But does it have the expertise to regulate it?
ASIC has highlighted the potential misuse of artificial intelligence in the financial services industry as a major enforcement priority for the year ahead. But lawyers are concerned the corporate regulator may lack the expertise to properly scrutinise the technology, and risks adding to the pile of AI-linked reviews already being conducted by various parts of the government.
The regulator released its corporate plan this week, and in the 28-page document it said it will focus on "promoting the ethical use of consumer data and artificial intelligence," and flagged a one year review of the technology.
"We will review the risks of consumer harm flowing from the potential misuse of consumer data, algorithms and artificial intelligence in financial services. We will also examine how institutions are seeking to mitigate risks," the plan said.
ASIC earlier this year warned banks and brokers against rushing to adopt AI, warning misuse of the technology could risk market integrity. But the language in the corporate plan takes things a step further.
