This article follows a session on this topic held at the ASIC Annual Forum (AAF), 3-4 November 2022. Catch up on session highlights from the Forum.

The session was moderated by Elysse Morgan, Host of ABC’s The Business.

Keynote: Dr Catriona Wallace, Founder, Responsible Metaverse Alliance, Executive Director, Gradient Institute, Adjunct Professor, AGSM, University of New South Wales.

Panel:

• Felipe Flores, Founder and Host, Data Futurology Podcast, Chief Data Analytics & Technology Officer, Honeysuckle Health
• Zak Hammer, Executive Director, Operations, ASIC
• Marek Rucinski, Deputy Commissioner, Smarter Data Program, Australian Taxation Office
• Dr Catriona Wallace, Founder, Responsible Metaverse Alliance, Executive Director, Gradient Institute, Adjunct Professor, AGSM, University of New South Wales

Key points

• This AAF session explored the latest opportunities and challenges emerging from data and artificial intelligence (AI).
• Rapidly increasing volumes of information and AI are changing the way financial services firms and regulators think about data, analytics and decision-making.
• ASIC is working towards being a leading digitally enabled and data-informed regulator, to better identify and assess trends, measure impact and work more efficiently.

Rapidly increasing volumes of information and AI are changing the way financial services firms and regulators think about data, analytics and decision-making. This presents challenging behavioural and ethical dilemmas.

Dr Catriona Wallace opened the discussion with a keynote speech on the importance of AI ethics and governance in the context of strong and growing investment in AI and automation.

‘The most powerful technology we have ever seen is AI coming into its full maturity. Yet we have very little regulation of it,’ Dr Wallace said.

ASIC as a digitally enabled and data-informed regulator

Ms Zak Hammer said that a key priority for ASIC is investing in technology so that we can be a leading digitally enabled and data-informed regulator. With the right skills and tools, ASIC can better identify and assess trends, and measure the impact of our work.

‘Data and data capability are absolutely important to our regulatory work at ASIC. We’re focused on three streams when it comes to data: a foundational framework for data collection and governance, investing in data systems and automation, and partnering and learning from others here in Australia and internationally,’ Ms Hammer added.

Being data-informed helps ASIC to accurately pinpoint harms, improve decision-making, and drive efficient, proportionate and targeted regulation. Our Data Strategy 2021–26 outlines the steps we are taking to fully harness our data assets and analytics capabilities. Firms are also investing in digital infrastructure and staff training to prevent data breaches, technology failures and outages.

ASIC continues to focus on reducing the risk of harm to consumers caused by poor financial product design and governance, as well as enhancing cyber and operational resilience. We are considering digitally enabled misconduct as emerging technologies and products change our financial ecosystem. This includes scams and crypto-assets.

On solving problems in the data sphere, Mr Felipe Flores said, ‘Technical data people can’t solve all of the challenges in data and AI without the help of non-technical people. We all need to work together.’

ASIC is Australia’s corporate, markets and financial services regulator.