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The other risk of AI: 'Overzealous' regulation that could stifle its benefits

At a time of rising concerns about the impact of AI, the Productivity Commission is calling for a light touch approach to regulating the technology in the economy.

Jennifer Duke and Laurel Henning
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The government is being encouraged to take a gentle approach to AI regulation to ensure it doesn't get in the way of productivity and economic benefits from the technology. AAP Image/Lauren Hurley.

As fears mount over the impact of artificial intelligence on the economy and society more broadly, calls are getting louder it to be properly regulated. But at least one of the of the government's key economic advisory bodies is urging a different approach to tackling the burgeoning technology: light touch oversight based on existing legal and regulatory frameworks.

The Productivity Commission, which advises the Treasury department on microeconomic reforms argues in fresh research published today that regulating AI too quickly could jeopardise the benefits from it for the Australian economy.

Those benefits could include plugging gaps in the workforce through automation, boosting productivity in services delivery, and someday, igniting productivity growth in the broader economy.

The commission has published research papers outlining a strategy to maximise the potential productivity benefits of AI while ensuring an appropriately strong safety net. It concluded that the regulation needed to capture AI already largely exists, in the form of privacy and discrimination laws and consumer protections.