Banks seek a carve-out from new AI regulation
The banks have urged the Albanese government to assess how every existing law might capture the use of artificial intelligence before drafting new ones, to protect the financial industry’s AI rollout from unintended regulatory delays.
Banks – which are already deploying AI to improve staff productivity and customer service – are pushing for a potential carve-out from any new requirements, citing extensive existing regulation they are beholden to. They have asked the Department of Industry, Science and Resources, which is considering a new regulatory regime to govern AI, to “consider whether the legislation needs to apply to specific, highly regulated sectors such as the banking sector”.
Anna Bligh, CEO of the Australian Banking Association, which wants the government to consider using “more flexible mechanisms” such as regulator and industry guidance, which can adapt as understanding of AI evolves. Natalie Boog
Banks want to extend AI to assessing loan applications and to help customers choose products.
The Australian Banking Association, in a submission this month on the government’s Safe and responsible AI in Australia discussion paper, published in June, expressed concerns about mandatory disclosure to customers of AI usage. This could be counterproductive if warnings are too general, but the lobby group warned more extensive disclosure may put intellectual property in the hands of competitors.
Building on work by the government’s National Science and Technology Council, the department proposed to vary requirements depending on how AI is deployed. The discussion paper suggests less onerous obligations for lower risk AI uses, and for users in higher risk areas to justify and explain the risks and costs.
The goal is to
Read more on afr.com
