The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on recently proposed regulation for artificial intelligence
(AI).

Context

  • The Department of Industry is leading a whole-of-government approach on AI regulation and on June 1 released a consultation paper on how the government can mitigate AI’s potential risks and support safe and responsible practices.
  • The government is moving toward stronger regulation of AI, with significant implications for companies in the consumer, corporate, criminal, online safety, administrative, copyright, intellectual property and privacy law spaces.

Significance

  • The government acknowledges the economic potential from businesses adopting emerging technologies but points to the need for regulations that meet the ethical challenges from the greater use of data, algorithms and AI. Feedback will inform consideration across the government. The consultation period ends July 26.
  • The consultation poses key questions related to risk, the ethical use of AI and regulation, such as a potential ban on “high-risk activities.” These include social scoring and facial recognition technology in certain circumstances, the merits of a “risk-based approach” to address potential AI risks and whether a risk-based approach should be self-regulated or mandated through regulation.

Implications

  • Affected companies will need to strike the right balance between forming industry alliances and carving out exemptions in niche areas. The government will need to determine whether regulation should be voluntary and industry led or mandated through regulation. Companies should be aware that the government is monitoring developments overseas to formulate its own policy.
  • Industry Minister Ed Husic has acknowledged that the public may not be comfortable with self-regulation, but he wants firms that are developing and using AI to start thinking about these challenges. Husic believes working internationally will be crucial and has noted that the consultation takes account of the regulatory responses in various countries.

We will continue to keep you updated on developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Michael “Mick” McNeill at mmcneill@bowergroupasia.com.

Best regards,

BGA Australia Team