List AI-use risk points in claims or underwriting against CPS 230, RG 271 and Privacy…
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the client's process description, list discrimination, explainability, disclosure and claims-handling risks against CPS 230, RG 271 and the Privacy Act, with vendor questions.
- What the lawyer must review
- Check human review of each claim file; AI denials without it risk breaching ICA s.13
- Note the breach risk seen in ASIC v TAL Life Limited [2021] FCA 193; the duty cannot be outsourced to an algorithm
- Check the privacy policy discloses AI in claims triage, underwriting and fraud flagging
- Apply APP 1.7 from 10 December 2026 and check OAIC guidance (expected by September 2026)
- Confirm AI vendors' material service provider status under the 30 April 2026 amended CPS 230 (from 1 July 2026)
- Apply GI Code claims duties whether a person or a system decides
- Check AI-set terms for unfair contract terms (ASIC v Auto & General Insurance Company Limited [2025] FCAFC 76)
- Written for / version
- Commonwealth versionCth
Rules that apply
The document starts from the task name. Change it if this piece of work is different.
Who does what
| Role | What they do |
|---|---|
| Assistance | Consider narrowly defined preparation support after confirming the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Confirm that the actual tool, feature and processing terms permit use of this information, including access, retention, training and disclosure conditions.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.