{"id":6994,"date":"2023-09-07T10:58:22","date_gmt":"2023-09-07T00:58:22","guid":{"rendered":"https:\/\/news.sap.com\/australia\/?p=6994"},"modified":"2023-09-29T07:15:08","modified_gmt":"2023-09-28T21:15:08","slug":"regulating-safe-and-responsible-ai-for-australian-businesses-and-government","status":"publish","type":"post","link":"https:\/\/news.sap.com\/australia\/2023\/09\/07\/regulating-safe-and-responsible-ai-for-australian-businesses-and-government\/","title":{"rendered":"Regulating safe and responsible AI for Australian businesses and government"},"content":{"rendered":"

Artificial intelligence (AI) presents a significant opportunity for people, business, and governments. McKinsey has termed GenerativeAI, \u201cthe next productivity frontier\u201d and estimates that it \u2018has the potential to generate $2.6 trillion to $4.4 trillion in value across industries.\u2019<\/span><\/p>\n

AI is revolutionising industries and ushering in a new era of work for users, businesses and more. While some organisations are already using it for small pilot projects, the real opportunity lies in exploring its ability to scale. <\/span>\u00a0<\/span><\/p>\n

In June of this year the Australian Government published its discussion paper on AI technology, called <\/span>Safe and responsible AI in Australia<\/span><\/a>.<\/span><\/i> What it revealed is that AI is a critical technology that can help to drive productivity growth in Australia. From hospitals using it to consolidate large amounts of patient data, engineers using it to evaluate and optimise designs, to using AI-enabling improvements and cost savings in the provision of legal services, it\u2019s clear all industries will benefit from AI.<\/span>\u00a0<\/span><\/p>\n

Australia\u2019s economy is currently experiencing low productivity growth, its lowest for 60 years<\/span>. We have an opportunity, even an obligation to, embrace this technology at all levels, across all industries to increase our economy\u2019s output.<\/span>\u00a0<\/span><\/p>\n

At SAP, we\u2019re bringing transformative intelligence to organisations through<\/span> AI-powered innovations<\/span><\/a> across both private and public sectors. For example, <\/span>the Queensland Office of State Revenue<\/span><\/a> is using SAP machine learning capabilities to predict those taxpayers that are at risk of defaulting. This is enabling them to proactively build personalised payment plans and deliver more <\/span>timely revenue collection to the government. On the other hand,<\/span> Winc<\/span><\/a>, one of A<\/span>ustralia\u2019s largest workplace solutions companies, is using SAP intelligent robotic process automation to automate repetitive administrative tasks, freeing up its workforce to focus on more strategic and value-added activities.<\/span>\u00a0<\/span><\/p>\n

The <\/span>need for<\/span> AI regulation<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

As the adoption of AI accelerates there is a growing discussion, prompted by the government\u2019s recent discussion paper, around what steps must be taken to regulate it.<\/span>\u00a0<\/span><\/p>\n

While recent discussions suggest the technology industry opposes regulation, while citizens advocate for greater protections, the reality is more nuanced.<\/span>\u00a0<\/span><\/p>\n

For our part, SAP does not oppose regulation if there is harm that can be best managed by it. In fact, in most cases existing regulations are suitable for addressing some of the issues raised by AI. For example, a core principle of Australian Consumer Law is that businesses must not engage in misleading or deceptive conduct. We do not need new AI specific laws to prohibit the use of generative AI to be used to create misleading images in a consumer protection context.<\/span>\u00a0<\/span><\/p>\n

Furthermore, while AI is a complex technology, the issues arising from the impacts of AI on intellectual property rights are very different from those related to businesses using AI to determine the suitability of a loan application.<\/span>\u00a0<\/span><\/p>\n

SAP\u2019s view is that a broad-based regulatory approach to addressing potential harms is not suitable.<\/span>\u00a0<\/span><\/p>\n

SAP\u2019s<\/span> risk-based approach to AI<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

To mitigate and manage the risks associated with AI, <\/span>SAP<\/span> recommend<\/span>s<\/span> the following<\/span>:<\/span><\/span>\u00a0<\/span><\/p>\n

    \n
  1. A risk-based sectoral approach rather than top-down broad-based regulatory intervention:<\/span><\/b> SAP recommends that regulators or policy makers undertake a risk assessment to determine whether to intervene based on end-user implications. For example, consumer protection policy makers and regulators should assess what the risks are facing a consumer who uses an AI-enabled driverless car.\u00a0<\/span>\u00a0<\/span><\/li>\n
  2. Establish an AI centre of excellence: <\/span><\/b>AI is a fast-moving technology with impacts across all government portfolios. To avoid overlap, inconsistency, duplication, and conflict, SAP recommends establishing an AI centre of excellence to advise and coordinate whole of government policy responses and apply a common set of principles to its application. As Ed Santow Professor & co-director, Human Technology Institute, University of Technology Sydney noted \u201c<\/span>A significant part of the problem in the AI era is not the content of our law, but the fact it is not consistently enforced when it comes to the development and use of AI.<\/span><\/i>\u201d<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    Government accountability does not end there. You should not regulate what you do not understand. Government must also be an exemplar in its use of AI, investing in AI across every portfolio and using it to improve its operations and citizen services. <\/span>\u00a0<\/span><\/p>\n

    The path forward requires industry <\/span>collaboration<\/span><\/span>\u00a0<\/span><\/strong><\/p>\n

    SAP looks forward to engaging with the Government\u2019s engagement regulatory responses to AI. However, we should not lose sight of the pressing public policy challenge of low productivity facing Australia. We know that AI technologies help us do more with less, so let\u2019s focus on how we can accelerate our economy\u2019s adoption of this technology. <\/span>\u00a0<\/span><\/p>\n

    For more information, read SAP\u2019s response to the Australian Government\u2019s Safe and Responsible AI discussion paper <\/span>here<\/a>.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

    Artificial intelligence (AI) presents a significant opportunity for people, business, and governments. McKinsey has termed GenerativeAI, \u201cthe next productivity frontier\u201d and estimates that it \u2018has…<\/p>\n","protected":false},"author":4256,"featured_media":7001,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5560233,5565391],"tags":[5561033],"sapn-display":[5565403,5565404,60294],"sapn-type":[5560547],"class_list":["post-6994","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud","category-technology","tag-artificial-intelligence","sapn-display-feature-hero","sapn-display-feature-spotlight","sapn-display-hero","sapn-type-feature"],"yoast_head":"\nRegulating safe and responsible AI for Australian businesses and government - SAP Australia & New Zealand News Center<\/title>\n<meta name=\"description\" content=\"Artificial intelligence (AI) presents a significant opportunity for people, business, and governments. 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    At the recent SAP NOW event in Sydney the <\/span>former NSW Minister for Customer Service Victor Dominello<\/span><\/a> reinforced this, noting that all agencies must prioritise experimenting and trialling new applications of AI technologies in their operations and policy challenges.<\/span>\u00a0<\/span><\/p>\n