The Australian Financial Complaints Authority is “taking a very slow approach” to using artificial intelligence to support handling life insurance disputes.

“We’re very early in our journey of using automation … it’s really important, particularly when we’re talking about claims and complaints, to make sure there is a human in the loop,” senior manager for insurance Caroline Brand told a members’ forum life session last week.

She says AFCA is piloting several AI-related initiatives, including one on call recording and transcription.

“While we are using automation, there will be review to make sure that what is being transcribed is correct and what is actually being recorded in the call, so there are no opportunities for misinterpretation, or as we’re all aware, of AI hallucinating.”

Ombudsman Andrew Weinmann says the authority will not use AI to decide dispute outcomes.

“That’s something that people do at AFCA, making decisions, making preliminary assessments, making determinations,” he said.

“That’s a job for human beings at AFCA, and there’s no plans to change that.”