Description

Issued AISC report concerning AI governance in financial services

On 29 October 2024, the Australian Securities and Investments Commission (ASIC) adopted a report noting the importance of updating governance frameworks in line with the rapid adoption of artificial intelligence (AI) by financial services and credit licensees. The report followed ASIC's first market review, which highlighted a potential governance gap as AI use accelerates, particularly noting that nearly half of the 23 licensees reviewed lacked policies addressing consumer fairness or bias. The ASIC noted the necessity for licensees to proactively adapt their governance practices to mitigate risks such as misinformation, unintended discrimination, and data security failures. The report also noted a significant intention among licensees to increase AI usage, emphasising the need for strong governance to support AI's safe, responsible, and beneficial application within the financial sector.

Original source

Scope

Policy Area
Design and testing standards
Policy Instrument
Performance monitoring requirement
Regulated Economic Activity
ML and AI development
Implementation Level
national
Government Branch
executive
Government Body
other regulatory body

Complete timeline of this policy change

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2024-10-29
concluded

On 29 October 2024, the Australian Securities and Investments Commission (ASIC) adopted a report no…