Australian AI Incident Database
Structured, searchable database of AU AI failures, algorithmic errors, and regulatory actions. Each incident cross-links to the architectural failure patterns on aipatterns.com.au.
29
Total incidents
16
Critical
5
Sectors affected
Multi-billion
Financial impact
Showing 4 of 4 incidents
ASIC wins Federal Court case over AI-assisted financial advice platform cyber failures — landmark precedent
RI Advice Group (AMP subsidiary)
The Federal Court found RI Advice Group failed to implement adequate cyber security controls on its AI-assisted financial advice systems, exposing client data. ASIC v RI Advice Group [2022] FCA 496 was the first case in Australia where ASIC used its financial services licence obligations to hold a firm accountable for inadequate AI and cyber risk management. The decision established that financial licensees have obligations to protect AI systems as part of their licence conditions.
Life insurance AI underwriting uses social and behavioural data — ASIC review flags privacy and fairness concerns
Multiple life insurers
ASIC's review of insurance sector AI (2023) found multiple life insurers using AI underwriting models that incorporated non-traditional data sources including social media activity, behavioural analytics, fitness tracker data, and location patterns as proximate indicators of health risk. The models were found to potentially proxy for protected attributes including disability status, mental health history, and geographic disadvantage. ASIC raised concerns about transparency — applicants were not informed their social data was being used in underwriting decisions.
RACQ algorithmic pricing error overcharges 270,000 insurance customers — $30M remediation
RACQ Insurance
RACQ Insurance discovered its automated insurance pricing algorithm had systematically overcharged approximately 270,000 Queensland customers on home, car, and boat insurance policies. The pricing algorithm failed to correctly apply loyalty and renewal discounts, with the error compounding over multiple renewal cycles. The insurer proactively disclosed the issue to ASIC and the Australian Securities and Investments Commission began monitoring the sector for similar algorithmic pricing errors.
ASIC opens inquiry into AI-automated insurance claims denial patterns after consumer complaints surge
Multiple general insurers
ASIC commenced an inquiry into general insurers' use of AI in claims triage and initial decision-making after a significant surge in complaints about automated claim denials. Consumer groups found patterns of AI systems denying claims without adequate human review, with denial reasons that were templated and did not reflect individual circumstances. The complaints were concentrated in flood damage claims (post-2022 flood events) where AI triage appeared to systematically under-assess structural damage.