The Australian Securities and Investments Commission will use current laws to address harm caused by artificial intelligence, as debate continues over whether specific rules for the technology are needed.

Commissioner Alan Kirkland says laws not referring to AI that can be applied include anti-discrimination requirements, general licensing rules, and obligations around conducting business honestly and fairly. 

“It’s still an open question as to whether there’ll be AI-specific regulation in Australia. In the meantime, our view is there’s ... existing law that is actually quite well equipped to deal with the challenges,” he told the Insurance Council of Australia annual conference last week. “There’s not a regulatory void here.”

Current laws could be applied where the regulator sees evidence of significant harm, particularly where businesses have not adequately considered risks and put the right processes in place up front, Mr Kirkland said.

Before introducing the technology, businesses should think about the risks, governance processes and how to measure outcomes and monitor for issues, he told the conference.

“We’ve been really clear that we see enormous benefits from industry applications of AI in terms of efficiency, but also in terms of transforming consumer experience, and we would like to see those benefits unlocked. Where we encourage people to apply their attention at management and board level, in particular, is around the applications that could have an impact on the outcomes for consumers.”

Mr Kirkland said for ASIC, AI could provide a better understanding of issues through data already provided by businesses, potentially reducing the regulatory burden on companies.

Australian Prudential Regulation Authority board member Suzanne Smith told the conference AI shows considerable potential in underwriting, claims processes, cybersecurity, fraud detection and crisis prevention.  

“It can bring efficiency to your business and in turn deliver greater value to your customers. However, it’s imperative that you fully understand the risks, as well as the opportunities,” she said.

Ms Smith said cyber, climate and geopolitical risks also require smarter and faster responses.

“Investment in digital capabilities, AI and new business strategies will open new opportunities and enhance industry resilience.”