INTHEBLACK February / March 2026 - Magazine - Page 43
and compliant use of AI [see breakout].
Further guidance comes from the Australian
Securities and Investments Commission
(ASIC), which has issued AI governance
considerations for financial services
(AFS) and credit licensees, and from
the Australian Institute of Company
Directors, whose A Director’s Guide to AI
Governance offers practical guidance for
boards using or wishing to deploy AI
within their organisations.
Meanwhile, the NAIC’s 2025
Guidance for AI adoption [see breakout]
recommends six practices for responsible
AI governance and adoption. The Office
of the Australian Information Commissioner
also provides guidance on privacy and
generative AI models.
Although not mandatory, these and other
frameworks can help businesses mitigate risk
and maintain trust. “Misuse not only carries
legal consequences under existing law,” Ord
says, “but also risks reputational damage and
loss of public trust.”
APAC LESSONS IN AI GOVERNANCE
Across the Asia-Pacific (APAC) region,
governments are experimenting with different
models of AI regulation. Singapore has
been a leader since launching the world’s
first Model AI Governance Framework
in 2019. This accountability-based
framework advises organisations in areas
spanning internal governance structures
and measures, human oversight, operations
management, and stakeholder interaction
and communication.
The country takes a sectoral approach
to AI regulation, with individual ministries,
authorities and commissions responsible for
producing regulatory compliance guidelines
and regulations. The Monetary Authority
of Singapore, for example, released the
Veritas Toolkit to help financial institutions
assess AI for fairness, ethics, accountability
and transparency.
SUPPORTIVE FRAMEWORKS
Gavan Ord, business investment and international
lead at CPA Australia, points to several frameworks
that can help leaders ensure ethical, secure and
compliant use of AI:
• Voluntary AI Safety Standard, Australian
Government Department of Industry, Science
and Resources
• ISO/IEC TR 5469:2024 Artificial Intelligence —
Functional safety and AI systems, covering AI use
in safety-related functions
• ISO/IEC 42001:2023 Information technology —
Artificial intelligence — Management system,
providing a framework for AI governance and
risk management
• APES 110 Code of Ethics for Professional
Accountants, which includes the fundamental
principles of ethics: integrity, objectivity,
professional competence and due care,
confidentiality and professional behaviour.
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