Consumer group Choice has urged the federal government to ensure there are strong laws leading to “safe, fair and accountable AI”.

It wants a ban on businesses using personal information to set individualised prices, and for extended protections against unfair trading under the Consumer and Competition Act to also cover financial services under the Australian Securities and Investments Commission Act, saying it has “significant privacy concerns” around how much AI can infer about individuals.

“There are risks of discrimination and bias, such as automated loan approval processes that could make it harder for women to get a loan,” Choice said. “Without safeguards, AI could drive one of the biggest shifts in power we’ve ever seen – tilting things even further in favour of big corporations.”

Individualised “surveillance pricing” could lead to a business charging different prices for the same product based on age, gender, location, buying habits or inferred interests, behaviour and mood.

“Perhaps a booking platform may use information about your browsing behaviour, previous searches or purchasing patterns to estimate how much you’re willing to pay for a flight or hotel.

“A grocery store could use information like your purchase history to individually adjust specials, promotions or prices.

“There are currently no laws preventing all the ways that businesses can engage in this unethical practice. It is crucial that Australia’s consumer protection framework is equipped to keep pace with emerging risks.”

Choice wants consumers to sign a petition demanding that proposed privacy reforms apply regardless of the type or size of business; that the new Scams Prevention Framework covers AI chatbots, email services, online search and marketplaces, and dating apps; and that a redress system be created for consumers who experience problems with digital services.

See the petition here.