The financial sector represents 7.7% of Australia’s GDP,1 and its infrastructure shapes our lives: such as how we save and spend, who receives credit or insurance and on what terms, and what retirement looks like.
AI is now deeply embedded across this infrastructure. Credit scoring models assess loan applications. Fraud detection systems block suspicious transactions. Chatbots handle customer enquiries. Financial services organisations are deploying AI to improve productivity, automate business processes, and enhance customer service.
When deployed well, AI offers significant benefits for institutions and customers alike, improving efficiency, speed and quality of service. Yet failures in these systems risk significant harm. Discriminatory algorithmic systems may unfairly deny or limit credit. Customer-facing chatbots that hallucinate policy terms can leave customers incorrectly believing they have insurance cover. Frauddetection systems may exclude certain communities from access to financial services.
