On 23 July 2025, the Australian Securities and Investments Commission (ASIC) published a speech by its chair, Joe Longo. The speech was delivered at the Australian Banking Association (ABA) Banking Conference in Sydney and encourages responsible use of artificial intelligence (AI) to improve customer outcomes in banking.
A new era
In short, Mr Longo believes that AI can be a catalyst for a new era in customer-centric banking – and a reminder that customer-centric is exactly what banking ought to be about. Mr Longo’s speech is careful to reinforce that the use of AI must make customers’ lives better and not just be a marketing or data-gathering tool. Mr Longo for instance foreshadows a follow-up to the Better Banking for Indigenous Consumers report to be released soon as an example of where AI could be of assistance – it could be used to prompt banks to serve customers better before the need for an ASIC report.
Regulatory response
One key issue that Mr Longo discusses in his speech is whether more regulation is needed around AI, to ensure it is adopted safely and wisely. Mr Longo’s position – and ASIC’s – is that it should not rush into more AI regulation: this is because existing laws are technology-neutral and therefore certain guard rails already exist and ASIC will enforce them as they stand. Mr Longo gives the example of the obligations of directors under the Corporations Act, which apply broadly and as companies increasingly deploy AI, that use of AI is one of a range of issues that directors must pay attention to, as part of their existing duties.
Mr Longo also notes that the more specific and targeted regulation is, the more complex it becomes and the harder it is in turn to understand, comply with and enforce.. This in turn creates a burden for everyone: legislators, policymakers, businesses, regulators, consumers, and investors. It also becomes a handbrake on innovation.
Whilst Mr Longo accepts that new regulation may be needed down the line, he considers that at present regulators should be bolder and more imaginative about how they use their existing powers. As Mr Longo states, “we’ve got to kick the tyres a bit and see just how far our existing technology-neutral framework will flex.”
ASIC’s expectations – and a warning
Mr Longo then discusses ASIC’s expectations for entities using AI, what the benchmark for good AI innovation looks like. The key point is that good AI innovation keeps the customer front and centre with AI being used to better serve the customer.
In closing, Mr Longo notes that AI is an opportunity to reinforce a focus on customer-centric banking, and that ASIC won’t hold back customer-centric AI innovation. But there’s a warning: banks can’t be complacent mustn’t forget that the costumer must be at the centre of everything that banks do – and ASIC will be watching.