Australian Government Embraces AI Transparency in Privacy Policy Overhaul

AI Transparency


  • The Australian government has responded to a review of privacy laws by committing to empower citizens with the right to understand how AI systems make decisions.
  • Privacy policies will now need to disclose personal information used in substantially automated decisions, but concerns linger about the definition of such decisions.
  • Controversial recommendations for a “right to be forgotten” and media compliance with privacy laws face mixed responses.

In a significant move to address concerns surrounding the growing influence of artificial intelligence (AI) in decision-making processes, the Australian government, under Attorney-General Mark Dreyfus, has unveiled its response to a comprehensive review of privacy laws. The government’s commitment to granting citizens the right to access meaningful information about AI-driven decisions and its willingness to remove exemptions for small businesses from the Privacy Act mark key developments in the pursuit of transparency with AI.

Empowering citizens with AI transparency

In its response to the privacy law review, the government has pledged to empower Australians to navigate an increasingly AI-dominated society. One of the pivotal recommendations adopted in-principle is the right for individuals to request meaningful information about how automated decisions are made. This move is in direct response to concerns raised during the review about the transparency and integrity of decisions driven by AI. The government emphasizes that the information provided should be clear and comprehensible, ensuring that citizens can understand how AI influences their lives.

The tech sector has expressed reservations about the extent of transparency required. Kate Pounder, head of the Tech Council of Australia, argues that disclosing scenarios where AI is employed may not always be in the public interest. She raises concerns about the term “AI” itself, suggesting that it can trigger anxiety in individuals. This debate underscores the delicate balance between transparency and the potential impact on public perception.

UNSW AI Institute chief scientist Toby Walsh points out that while some companies use simple automated processes with transparent decision-making, others employ complex systems that are challenging to explain. This diversity in AI systems underscores the complexity of achieving full transparency across the AI landscape.

Defining substantially automated decisions

Another significant adoption from the privacy inquiry is the requirement for privacy policies to outline personal information used in “substantially automated decisions.” But, there remains ambiguity surrounding the scope of such decisions. Kate Pounder highlights that the definition of these decisions needs clarification, leaving room for interpretation and potential challenges in implementation.

One of the most contentious recommendations of the privacy review is the “right to be forgotten” or erased by online platforms like Google. While the government has agreed in-principle to this concept, researchers are grappling with its applicability in the AI era. Large language models like ChatGPT, which have the ability to accumulate vast amounts of online information, pose a unique challenge. Toby Walsh highlights the complexity of forcing these AI models to forget personal information, stating that viable solutions are yet to emerge.

Media compliance and privacy laws

Notably, the government did not adopt a recommendation to enforce media companies’ compliance with privacy laws. This decision has garnered mixed responses, with concerns about its potential impact on press freedom. Independent MP Zali Steggall, who previously questioned media outlets’ publication of private texts, acknowledges the importance of a free press but underscores the need for a balanced approach to protect individuals’ privacy rights.

The Australian government’s response to the privacy law review reflects a commitment to addressing the challenges posed by AI in modern society. While steps are being taken to ensure transparency and empower citizens, questions remain about the practical implementation of these measures, particularly in complex AI systems. The debate surrounding AI transparency and the “right to be forgotten” highlights the evolving nature of privacy laws in the age of artificial intelligence.

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Written by Aamir Sheikh

Amir is a media, marketing and content professional working in the digital industry. A veteran in content production Amir is now an enthusiastic cryptocurrency proponent, analyst and writer.