Navigating Australia's New Voluntary AI Safety Standards

Understanding the Voluntary AI Safety Standard

In an era where artificial intelligence is rapidly evolving, the Australian Government has taken a significant step by introducing the Voluntary AI Safety Standard. Unveiled on September 5, 2024, this comprehensive set of guidelines aims to help organisations navigate the complex landscape of AI development and deployment safely and effectively. 

The Voluntary AI Safety Standard comprises 10 guidelines that cover various aspects of AI governance, from accountability processes and risk management to data governance and human oversight. These guidelines are not merely suggestions; but offer a practical roadmap for organisations to enhance their AI maturity, ensuring transparent, ethical, and reliable AI operations. Although the standards are voluntary, adoption of these standards by organisations will not only assist organisations to meet stakeholder expectations but also position themselves as leaders in the responsible use and development of AI technology.

Key Guidelines for Ensuring AI Safety and Reliability

The Voluntary AI Safety Standard is built on 10 guidelines designed to ensure the safe and reliable development and deployment of AI systems. These guidelines guide organisations through the intricacies of AI governance:

1. Accountability Processes: Establishing a solid governance framework is crucial. Organisations should allocate ownership for AI use, develop a comprehensive AI strategy, and implement training programs to ensure that everyone involved understands their roles and responsibilities.

2. Risk Management: Identifying and mitigating risks is essential for the safe deployment of AI. This involves conducting stakeholder impact assessments and continuous risk evaluations to address potential issues proactively. This approach not only mitigates risks but also builds trust with stakeholders, demonstrating a commitment to safe and ethical AI practices.

3. Data Governance: Ensuring data quality and addressing cyber vulnerabilities are paramount. Robust data governance measures are encouraged to be adopted by organisations to protect the integrity and security of data used in AI systems.

4. Testing and Monitoring: Regular testing and monitoring of AI models are necessary to ensure they perform as expected and adapt to changing risk landscapes.

5. Human Oversight: Meaningful human control over AI systems is vital to prevent unintended consequences and ensure ethical decision-making. AI systems should be designed to enable meaningful human control, ensuring that humans can intervene when necessary to prevent unintended consequences. This approach fosters ethical decision-making and aligns AI operations with organisational values and societal expectations.

6. User Information: Transparency with end-users about AI-enabled decisions and AI-generated content builds trust and allows users to understand and challenge AI outcomes if necessary.

7. Challenge Processes: Providing mechanisms for individuals to contest AI decisions and outcomes ensures fairness and accountability.

8. Supply Chain Transparency: Maintaining transparency about data, models, and systems within the AI supply chain fosters trust and collaboration among organisations, to help effectively address risks.

9. Record Keeping: Keeping detailed records enables third-party compliance assessments and demonstrates adherence to the guidelines.

10. Stakeholder Engagement: Continuous engagement with stakeholders, prioritising safety, diversity, inclusion, and fairness, throughout the life cycle of an AI system.

These guidelines are designed to be applied by those involved in the development and deployment of AI, aligning with Australia’s AI Ethics Principles and international agreements Australia has signed up to like the Bletchley Declaration.

Preparing for Mandatory High-Risk AI Regulations

While the Voluntary AI Safety Standard provides a comprehensive framework for safe and responsible AI deployment, the Australian Government is also moving towards mandatory regulations for the use of AI in high-risk contexts. The Australian Government has released a paper (High-Risk AI Paper), released alongside the voluntary standards, that outlines proposals for mandatory guardrails similar to those in the Voluntary Standard.

Public feedback is being sought to define high-risk AI settings and determine the appropriate mandatory guardrails and how best to implement them. This consultation period, open until October 4, 2024, provides a critical opportunity for stakeholders to influence the future regulatory landscape. The proposed approach includes defining high-risk AI as systems with known or foreseeable uses that may impact human rights, health, safety, legal standing, or societal and economic stability, as well as general-purpose AI models adaptable for various applications.

Steps Organisations Can Take to Stay Ahead of AI Regulatory Changes

Establishing a governance framework with AI deployment that takes into account the voluntary standard ensures that there is a clear structure for decision-making and responsibility allocation. As the momentum builds towards AI governance reform in Australia, organisations are encouraged to stay informed and proactive.

It is recommended that organisations take steps to familiarise themselves with the Voluntary AI Safety Standard as well as develop a comprehensive AI strategy that includes training programs to equip their teams with the necessary skills and knowledge.

Organisations involved with general-purpose AI or high-risk AI models should consider participating in the current consultation process for the High-Risk AI Paper. This engagement allows them to influence upcoming policies and adapt to the evolving regulatory environment.

By embracing these new standards and preparing for regulatory changes, Australian organisations can ensure they are at the forefront of safe, reliable, and ethical AI deployment. This proactive approach will not only build trust with stakeholders but also position organisations as leaders in the innovative and responsible use of AI technology in a rapidly changing world.

Authors: Sylvie Tso & Nadine Martino, Spruson & Ferguson Lawyers  

Sylvie Tso

Nadine Martino

Sylvie is a lawyer, notary public and an Australian Patent and Trade Mark Attorney and has over 20 years of experience in the IP field. Sylvie was a principal author of the first edition of the IP Manual for Australian Government and has assisted major Government departments with their IP audits. Sylvie advises many sectors of the technology based community on a broad range of IP issues as well as on e-commerce, privacy, data protection, and legal issues in implementation of AI technologies. Sylvie currently sits on the IP Advisory Committee for Macquarie University.

Nadine is a Senior Associate at Spruson & Ferguson Lawyers, focusing on commercial law and IP transactions. She works closely with clients to protect, develop and exploit their IP, technology and data. With a strategic and client-focused approach, Nadine helps businesses navigate legal complexities, ensuring they can unlock the full potential of their innovations.