AI safeguards needed to prevent discrimination: Aus Human Rights Commission

Artificial intelligence (AI) enhances workflows and creates better decision-making in an organisation, but there needs to be safeguards in place to prevent potential discrimination, according to the Australian Human Rights Commission (AHRC).

The AHRC together with the Actuaries Institute released a guidance resource designed to help actuaries and insurers to comply with the federal anti-discrimination legislation when AI is used in pricing or underwriting insurance products.

The guidance was developed after a 2021 report by the AHRC that looked at the human rights impacts of new and emerging technologies, including AI-informed decision-making.

One of the recommendations of that report was that a set of guidelines be developed for use by government and non-government organisations on complying with federal anti-discrimination laws when AI has been used in decision making.

Elayne Grace, chief executive of the Actuaries Institute said there was an urgent need for guidance to assist actuaries in the exercise of their professional duties, noting this resource should also provide comfort to consumers that their rights were being protected.

Grace said, “Australia’s anti-discrimination laws are long standing but there is limited guidance and case law available to practitioners.

“The complexity arising from differing anti-discrimination legislation in Australia at the federal, State and Territory levels, compounds the challenges facing Actuaries, and may reflect an opportunity for reform.”

Lorraine Finlay, Human Rights Commissioner said, “With AI increasingly being used by businesses to make decisions that may affect people’s basic rights, it is essential that we have rigorous protections in place to ensure the integrity of our anti-discrimination laws.

“But without adequate safeguards, there is the possibility that algorithmic bias might cause people to suffer discrimination due to characteristics such as age, race, disability, or sex.”

Finlay said this guidance resource, prepared in conjunction with the Actuaries Institute, provides practical guidance for insurers on complying with the various federal anti-discrimination laws when using AI.

Several intersecting megatrends made the lack of guidance more problematic for actuaries, according to Grace.

She said, “These trends include the explosive growth of ‘big data’, increased use and power of artificial intelligence and algorithmic decision-making and growing and changing consumer awareness and expectations about what is ‘fair’.

“Actuaries seek to responsibly leverage the potential benefits of these digital megatrends for the consumer, society and business. To do so with confidence, however, requires authoritative guidance to make the law clear.”