The current technology-neutral Australian Consumer Law (ACL) should be maintained and applied to new and emerging technologies as it already is, says the Insurance Council of Australia (ICA).
This approach, together with the government’s Voluntary AI Safety Standard and proposed mandatory guardrails for AI in high-risk settings, would provide the opportunity for the government and regulators to continue to monitor the use of AI within the existing ACL. This could facilitate the identification of any potential gaps in the ACL in relation to AI-enabled goods and services, should they arise.
The ICA made these comments in connection with a review of AI by the government whose commitment to a modern and efficient regulatory system is seen as a critical input to unlocking innovative uses of AI in the Australian economy.
The ICA said, “We support regulatory guidance that would provide industry and consumers with greater clarity in relation to the application of the ACL to AI-enabled goods and services, and we note there are already examples of this.
“This would help avoid potential unintended consequences that may flow from legislative change if potential risks to consumers are not clearly identified.”
Where applicable, said the ICA, guidance should be developed with consideration to other AI-related regulation, proposed regulation, as well as recent reviews and reports highlighting regulators’ approach to AI such as:
• The Department of Industry, Science and Resources’ proposal for the introduction of mandatory guardrails for AI in high-risk settings.
• The Attorney-General’s Department’s recommendations for reforms to the Privacy Act 1988.
• The Australian Securities and Investments Commission’s REP 798 “Beware the gap: Governance arrangements in the face of AI innovation”.
• The Office of the Australian Information Commissioner’s Guidance on privacy and developing and training generative AI models.
The ICA is the representative body of the general insurance industry in Australia and represents approximately 89% of private sector general insurers. The general insurance industry employs approximately 46,000 people, generates gross written premium of A$66bn ($43bn) per annum, and on average pays out A$159m in claims each working day.