31 July 2023 • 2 minute read
Artificial Intelligence regulation needs decentralised approach
DLA Piper has worked with Insurtech Australia in drafting a submission to the Federal Department of Industry, Science and Resources on its Discussion Paper, ‘Safe and responsible AI in Australia’. In doing so, DLA Piper engaged with Insurtech Australia and its membership to garner views as to the need for specific and targeted regulation of Artificial Intelligence (AI) in Australia.
Ultimately, the submission expresses the view that the Federal Government should conduct a gap analysis of the existing legislative and regulatory frameworks in Australia, with a view to assessing the extent to which further regulation is required.
In addition, the submission describes the potential for ‘over-regulation’, which could have the consequence of stifling innovation. Instead, the submission advocates a ‘decentralised’ sector-based approach that speaks to the risks of particular AI use cases in different sectors.
“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.
“As a nascent technology, it’s important we don’t stifle innovation driven by AI. A rigid or onerous regulatory regimecould 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)” said Dylan Burke, Partner at DLA Piper.
“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. 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,” said Simone Dossetor, CEO at Insurtech Australia.
Insurtech Australia is Australia’s leading not-for-profit industry association for insurtech and insurance innovation.
Ultimately, the submission expresses the view that the Federal Government should conduct a gap analysis of the existing legislative and regulatory frameworks in Australia, with a view to assessing the extent to which further regulation is required.
In addition, the submission describes the potential for ‘over-regulation’, which could have the consequence of stifling innovation. Instead, the submission advocates a ‘decentralised’ sector-based approach that speaks to the risks of particular AI use cases in different sectors.
“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.
“As a nascent technology, it’s important we don’t stifle innovation driven by AI. A rigid or onerous regulatory regimecould 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)” said Dylan Burke, Partner at DLA Piper.
“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. 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,” said Simone Dossetor, CEO at Insurtech Australia.
Insurtech Australia is Australia’s leading not-for-profit industry association for insurtech and insurance innovation.
