ASIC is cautioning licensees to ensure their governance practices keep up with their adoption of AI after its first report showed a potential gap between governance and AI adoption.
The regulator reviewed AI usage and adoption across 23 financial services and credit licensees where AI interacted with or impacted consumers and found there was potential for governance to fail to keep up with AI adoption.
Findings by ASIC revealed nearly half of licensees reviewed did not have policies that took into account consumer fairness and fewer than half had policies governing the disclosure of AI use to consumers.
ASIC announced in its FY25 corporate plan there would be a greater focus on AI governance standards by licensees.
