AI Governance: ASIC And APRA Letters To Industry On Emerging AI Risks

The Australian Securities and Investments Commission (ASIC) has issued an open letter to all AFS licensees and market participants calling for urgent action to strengthen cyber resilience in response to the evolving threat posed by artificial intelligence models (the ASIC Letter).  

ASIC joins a growing chorus of Australian regulators, including the Australian Transaction Reports and Analysis Centre (AUSTRAC), the Australian Prudential Regulation Authority (APRA), the Australian Communications Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), which have commented on the emerging risks as businesses increasingly rely on AI systems within their day-to-day operations. This follows announcements from Anthropic that the AI model, Mythos, cannot be released to the wider public as it is so effective in finding and exploiting previously unknown security and cyber vulnerabilities.