Select Committee on Adopting Artificial Intelligence, 21 May 2024

I am pleased to appear before the Committee today and to provide this short opening statement.

My name is Joseph Longo and I am the Chair of ASIC.

I am joined by Executive Director of Markets, Calissa Aldridge and our Digital and Legal Transformation Lead, Graham Jefferson.

ASIC is supportive of the safe and responsible use of AI by Australian businesses.

We believe that effective AI tools may bring enormous benefits to businesses and end-users. On the other hand, irresponsible or malicious use of AI tools may cause considerable harm to consumers.

This is why we are extremely interested in the use and impact of AI technologies in the financial system, so much so that we have made it a key priority for ASIC.

We are engaging with industry, other agencies, and international peers to monitor developments, identify risks and improve practices around its use. For example, we are reviewing the use of AI and advanced data analytics in a sample of entities in banking, credit, insurance, and financial advice, and testing how licensees are identifying and mitigating potential consumer harms.

We are also encouraging conversations around AI.

Later today, in partnership with the University of Technology Sydney we will host an AI Regulators Symposium. Its aim is to have a critical conversation with experts from academia, business, industry, and government on how AI is changing regulation and the way regulators go about their work and identify the conditions necessary for effective regulation of AI.

Our vision at ASIC is to become a leading digitally enabled and data-informed regulator by 2030. To support this vision, we have commenced a digital transformation program.

The current laws that ASIC administers, such as directors’ duties and general licensing obligations, are technology neutral. This mean that they apply equally to outcomes delivered by AI and non-AI systems and processes and that those laws continue to protect consumers and investors.

ASIC will continue to enforce these laws as it always has.

We welcome any questions the Committee may have.

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