The Australian government is actively evaluating the implications of artificial intelligence (AI) on the Australian Consumer Law (ACL) as part of a larger initiative to assess the responsible use of AI technologies. This review builds upon previous consultations regarding safe AI practices in Australia and aims to determine whether existing consumer protections are adequate in light of the rapid adoption of AI by businesses. As part of the 2024–25 budget, the government has allocated $39.9 million over five years to support the development of policies that clarify and strengthen the legal framework surrounding AI.
Led by Treasury, the priority review seeks to engage industry stakeholders and the public through the recently released discussion paper, which outlines key questions regarding the suitability of the ACL in protecting consumers interacting with AI-enabled goods and services. The government is specifically interested in understanding how well the ACL principles can be adapted to manage potential consumer law risks associated with these technologies. Stakeholders are encouraged to submit their thoughts on various aspects, including the available remedies for consumers and how liability should be allocated among manufacturers and suppliers of AI products.
Submissions for the review are open until November 12, 2024, and the government’s efforts to gather insights reflect a proactive approach to regulation in the face of technological advancements. This initiative is part of a broader strategy to implement “mandatory guardrails” to ensure the safe use of AI, particularly in high-risk sectors. Minister for Industry and Science Ed Husic has emphasized the importance of stronger protections for Australians, acknowledging public concerns regarding the potential misuse of AI technologies.
In addition to the review of the ACL, the government has also introduced a Voluntary AI Safety Standard, which aims to provide guidance to businesses on best practices for using high-risk AI applications. Furthermore, a federal inquiry into the impact of AI systems in government operations is underway, examining how public sector entities can effectively leverage AI while addressing associated risks. As Australia navigates the complexities of AI integration, these initiatives will play a crucial role in shaping a regulatory environment that prioritizes consumer safety and fosters innovation.
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