Artificial Intelligence (AI) regulation needs a decentralised approach that addresses the risks of particular AI use cases in different sectors, Insurtech Australia (IA) and law firm DLA Piper say in a submission to the Federal Department of Industry, Science and Resources. 

The government should begin by conducting a gap analysis of the existing legislative and regulatory frameworks in Australia to assess what further regulation is required, it says. 

It also warns of potential for “over-regulation” which could quash innovation. 

DLA Piper Senior Associate and Australian AI Lead Alex Horder says while existing laws on privacy, consumer protection and anti-discrimination may apply to AI in some cases, AI “is a unique beast”. 

“It’s important that we review the existing frameworks to assess the need for specific contemplation of AI,” he said. 

IA CEO Simone Dossetor says many insurtech 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,” Ms Dossetor said. 

DLA Piper Partner Dylan Burke says it is important industry understands how existing laws interact with AI, and how risks need to be managed appropriately – particularly in light of future regulation. 

“As a nascent technology, it’s important we don’t stifle innovation driven by AI – a rigid or onerous regulatory regime could be counterproductive,” Mr Burke said.