As artificial intelligence becomes a buzzword in business, Australian regulators are warning companies to back up their AI-related marketing claims or face legal consequences. Both the Australian Securities and Investments Commission (ASIC) and the Australian Competition and Consumer Commission (ACCC) have signaled that they’re closely watching for “AI washing”, the practice of exaggerating or falsely claiming the use of AI.
In a recent article, Macpherson Kelley highlights this growing regulatory concern and outlines the legal risks for businesses making unsupported AI claims.
⚠️ Key Insights for Businesses:
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Misrepresentation is misleading conduct
Under Australian Consumer Law, overstating or fabricating the use of AI in a product or service could constitute misleading and deceptive conduct. -
ASIC is monitoring financial services
Companies in fintech and financial advisory sectors are under scrutiny for overstating AI’s role in algorithms, tools, or investment decision platforms. -
The ACCC is prioritizing AI-related misrepresentations
As part of its broader crackdown on deceptive marketing, AI claims are now a focus area. -
Regulatory penalties can be severe
Companies found to be engaging in AI washing could face fines, enforcement action, and reputational damage.
For companies adopting or marketing AI technologies, it’s more important than ever to ensure all claims are accurate, verifiable, and legally sound. For tailored guidance on compliant AI communications, you can contact Macpherson Kelley directly or reach out to us via PrivacyRules to be connected with their expert team.