The Government has initiated a consultation process on the review of artificial intelligence (AI) and the Australian Consumer Law (ACL) as it looks to further work on safe and responsible AI practices across industries.

The fresh discussion paper explores the application of the ACL to AI-enabled goods and services and seeks stakeholder views on the appropriateness of existing consumer protections under the ACL for consumers of AI-enabled goods and services.

According to the Government, Australia’s whole-of-economy consumer protection framework, the Australian Consumer Law has the potential to address AI-related harms across a broad array of economic settings.

So the discussion paper delves into the application of existing ACL provisions to new and emerging AI-enabled goods and services, and remedies for consumers and liability for suppliers and manufacturers of AI-enabled goods and services when things go wrong. Stakeholders are encouraged to provide feedback on the discussion paper by Tuesday, 12 November 2024.

This discussion paper builds on previous consultation undertaken by the Department of Industry, Science and Resources (DISR) on Safe and responsible AI in Australia in June 2023. The consultation process also complements ongoing work being progressed across Government in relation to AI, including DISR’s proposals paper for introducing mandatory guardrails for AI in high-risk settings.

The ACL, part of the Competition and Consumer Act 2010, contains technology-neutral requirements that regulate business behaviour. The ACL uses a combination of standards-based provisions which set out principles that generally apply across circumstances and industries, and specific provisions which establish conventions for defined behaviours.

The discussion paper seeks to further explore the application of the ACL in relation to AI-enabled goods and services and forms part of the Australian Government’s broader ongoing work to clarify and strengthen existing laws to address AI-related risks and harms while considering whether additional AI-specific frameworks may be required.

“AI is already delivering benefits to Australian consumers and businesses through a wide variety of AI‑enabled goods and services, including chatbots and virtual assistants. Demand for AI-enabled goods and services is expected to grow into the future. While integrating AI systems within goods and services presents a range of benefits, it may also amplify or create new risks for consumers," the discussion paper’s executive statement reads.

"This forms part of the Australian Government’s broader ongoing work to clarify and strengthen existing laws to address AI-related risks and harms while considering whether additional AI specific frameworks – for example, framework legislation or an AI Act – may be required."