In Australia, ASIC is urging financial services and credit licensees to ensure their governance practices keep pace with their accelerating adoption of artificial intelligence.
The commission says the call comes as its first state of the market review of the use and adoption of AI by 23 licensees* found there was potential for governance to lag AI adoption, despite current AI use being relatively cautious. (Click here to see ASIC’s full report).
ASIC Chair Joe Longo says making sure governance frameworks are updated for the planned use of AI is crucial to licensees across the ditch meeting future challenges posed by the technology.
“Our review shows AI use by the licensees has to date focussed predominantly on supporting human decisions and improving efficiencies,” he says.
“However, the volume of AI use is accelerating rapidly, with around 60% of licensees intending to ramp up AI usage, which could change the way AI impacts consumers.”
ASIC’s findings reveal nearly half of licensees did not have policies in place that considered consumer fairness or bias, and even fewer had policies governing the disclosure of AI use to consumers.
“It is clear that work needs to be done – and quickly – to ensure governance is adequate for the potential surge in consumer-facing AI,” Longo says.
He adds that AI could bring significant benefits, but without governance processes keeping pace, “significant risks” could emerge.