When Reg Tech meets Legal Tech

The Australian Securities and Investments Commission (ASIC) recently hosted the 18th Annual Regtech Liaison Forum joining regulators and industry to discuss the latest in all things Regtech. Siera Data was there to get a legal tech perspective of the ASIC Regtech Liaison Forum.

Australia’s large regulators have been using technology and advanced analytics for years, so it was no surprise to hear that ASIC continues to promote advanced analytics as an integrated part of exercising ASIC’s mandates.

So whilst Siera Data was attending with our legal technology hat on, it was interesting to see the similarities between legal and regulation technology.

Part of ASIC’s push for better use of AI and advanced analytics was in the field of corporate disclosures – this is part of a corporation’s obligation to provide accurate information to ASIC about their ongoing business. ASIC were keen to ensure that advanced analytics helped them identify only bad actors and not simply innocent mistakes when it comes to corporate disclosures. It was also worth noting that ASIC were keen to be on top of technology in the Regtech space such that they at least matching the technology capacities of the corporations they regulated.

Also of interest was ASIC’s involvement, through the Department of Industry Science and Resources (DISR), of the ethical use of AI. AI and ethics is something true to many of us who practice legal technology and so it is with our regulators. I’ve added a copy of the DISR whitepaper on AI and ethics for download below.

What is interesting for law firms is the potential new legislative reforms bringing lawyers, among other professions, under tougher anti-money laundering and counter-terrorism finance laws (AML-CTF). Australia is yet to sign up to these tougher laws and law firms may find they have a requirement to turn the spotlight in-house when it comes to AML regulation. Could this be another use of AI for lawyers?

Finally, it was interesting to hear from the industry about what they think the next round of regulation for AI might look like. Of interest was discussion surrounding the European Parliaments new AI Act and provisions such as those requiring a declaration by authors of the use of AI in content.

In fact, the AI Act just may be a great discussion for another time …

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