Government warns of ‘potential risks’ in new AI insurance technology
The Australian Competition and Consumer Commission (ACCC) has warned of “potential risk” from new AI technology and has warned against its use for consumer insurance.
The commission said it had been contacted by “multiple stakeholders” who had concerns about the potential of insurance companies using the technology for personal data collection and would be reviewing the technology’s impact on consumers.
The ACCC has called on insurance companies to stop using the AI technology by the end of the year.”AI systems are being used in Australia’s personal injury compensation scheme and the Commission has received reports that AI systems are used by insurance companies for this purpose,” the commission said.
“The Commission is concerned that AI technology could potentially be used for the collection and use of personal data by insurers.”
In an email, the ACCC said it was also aware of concerns raised by some insurance companies and said it would be working with them to develop guidelines for personal injury insurers.
The commission has said it will work with insurance companies on a voluntary basis to develop policies that do not allow AI systems to collect or use personal data.
“We will be liaising with insurers to work out what information they would be required to collect and how it would relate to the risk of personal injury,” the ACCCP said in a statement.
“These discussions will include an understanding of the impact on insurance and the consumer of AI systems using the data for personal insurance purposes.”
The ACCCP is not the only regulator to have raised concerns about AI technology.
In February, the Australian Competition & Consumer Commission warned insurers about the risks of using AI technology to collect data on consumers in a blog post.
“The risks posed by the use of artificial intelligence (AI) systems are very real and include the potential for significant data collection by the systems,” the blog post read.
“If the systems are allowed to collect information about consumers and, ultimately, the value of the consumer’s property, it can have serious impacts on the property market.”