Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), will formally review how banks use artificial intelligence in dealings with customers. A letter sent to banks on Wednesday said the review would examine new and proposed AI use cases and their potential impact on customers. ASIC said AI and automation could benefit banks but stressed that customers should remain protected during decision-making and lending processes. The review follows a May warning that banks needed urgent action against cyber risks from frontier AI systems. ASIC said in August that nine roundtable events with 600 participants across Australia's financial services sector had examined AI practices and workforce behavior. Cybersecurity threats and the speed of AI-led attacks emerged as key themes. ING, NatWest, Bank of America, Capital One and Commonwealth Bank of Australia said earlier this month that customers were enthusiastic about agentic commerce, while warning that AI was advancing faster than many industry standards and consumer protections.