AFSLs cannot outsource responsibility for AI or digital fails
Financial services licensees including superannuation funds cannot outsource responsibility when things go wrong and that includes the use of artificial intelligence (AI) and digital advice, according to the Assistant Treasurer and Minister for Financial Services, Stephen Jones.
The minister also noted the manner in which the Australian Securities and Investments Commission (ASIC) against big industry fund, Cbus, was a reflection of the need for licensees to accept responsibility even when utilising an outsource model.
He said that if a digital advice tool underpinned by AI gives bad advice the licensee could not shift blame and the obligation would remain on the licensee.”
“But digital advice used safely and effectively could be a game-changer to fill the acute gap and a growing gap in the provision of financial advice in this country,” Jones said.
Addressing Financial Newswire’s Future of AI in Wealth Management Conference in Sydney, Jones also reinforced that when it came to regulation in the context of AI, the Government’s intention was to maintain the current regulatory structures.
He said that the Australian Securities and Investments Commission (ASIC) would be responsible for regulating AI in the context of the financial services sector while the Australian Competition and Consumer Commission (ACCC) would be responsible for competition in the general services sector.
Jones reinforced that he sees the use of AI and digital advice solutions as key to delivering on the Government’s ambition to make financial advice more accessible and affordable.
However, he emphasised that digital advice and the use of AI was not being envisaged as a replacement for financial advisers.
The minister said that in circumstances where millions of Australians had a need for financial advice and there were fewer than 16,000 advisers on the Financial Adviser Register, the numbers simply did not compute.
Dear Jonesy, Canberra Pollies & Bureaucrats, would 29,000 Advisers, pre FARSEA, pre LIF, pre Grandfathered Commissions killed, be a better number of Advisers to serve the Australian masses.
What a disastrous Govt own goal.
Now let’s fill the void we created to increase education, ethics & reduce conflicts.
With uneducated BackPackers, collectively charging hidden commissions to sell conflicted vertically owned products at Industry Super.
And Robo Advice that despite billions invested globally has not been successful anywhere.
Great job Canberra
When I think of AI k think if Terminator ( the movie) how did that work out for the world
This persistent reliance on outsourcing relying on machines and just outright laziness has helped contribute to this
Don’t laugh to hard just yet I might not be around but some of you will when this all goes “ pear shaped “
Interesting that Cbus is trying to outsource responsibility to their overseas administration.