Government warned of AI ‘over-regulation’ risk

A decentralised approach may work best, submission sets out
Government warned of AI ‘over-regulation’ risk
INSURANCE NEWS
By Roxanne Libatique
01 Aug 2023

The government has been called on to take a decentralised approach to artificial intelligence (AI) regulation.

In a submission to the Federal Department of Industry, Science, and Resources on its discussion paper, “Safe and responsible AI in Australia,” DLA Piper and Insurtech Australia called on the government to conduct a gap analysis of current legislative and regulatory frameworks to assess the extent to which further regulation is required.

“Many Insurtech Australia members and partners are deploying AI in various forms across insurance functions, including in relation to pricing, policy generation and claims management, to better serve insurance customers,” said Insurtech Australia CEO Simone Dossetor. “We support the development of guidance and initiatives to generate trust and confidence in AI and ensure the responsible development and deployment of AI in Australia,”

“Over-regulation” warning

The submission emphasised the risk of over-regulation when trying to regulate technology such as AI. This approach could hinder innovation, the submission cautioned.

A “decentralised” sector-based approach that outlines the risks of AI use cases in different sectors was mooted as one possible option.

“While existing laws on privacy, consumer protection and anti-discrimination may apply to AI in some cases, AI is a unique beast, and it's important that we review the existing frameworks to assess the need for specific contemplation of AI,” said Alex Horder, senior associate and Australian AI Lead at DLA Piper.

DLA Piper partner Dylan Burke said: “As a nascent technology, it's important we don't stifle innovation driven by AI.

“A rigid or onerous regulatory regime could be counter-productive. However, it's also important that industry understands how existing laws interact with AI and how risks need to be managed appropriately (particularly in light of future regulation).”

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