Deloitte Privacy Index 2024 reveals Aussies are losing faith in AI – privacy and trust in decline
As the world enters the age of intelligent automation, where innovative technologies like artificial intelligence (AI), generative AI (GenAI), and automated decision-making (ADM) increasingly influence people’s lives, what does it mean for the future of privacy and trust?
A newly released Deloitte report, Privacy Index 2024: A Transparent Tomorrow, reveals that consumer trust in how organisations handle personal information has significantly declined, with AI contributing to this erosion of confidence.
The report examines AI and ADM management practices across 10 key industries, analysing current privacy standards and their readiness for future technological advancements and impending Australian privacy reforms—the most significant since 2014. It also provides organisations with actionable insights and data-driven recommendations.
Key Findings
•Trust Decline Across Industries: When asked which industry they trust most with their personal information, 30% of the 1,000 Australian consumers surveyed answered “none of the above,” citing the proliferation of data breaches as evidence of systemic weaknesses. Government followed at 28%, while real estate and telecommunications/media ranked at the bottom.
•Consumer Backlash:
•50% of consumers (up from 35% last year) chose not to purchase a product or service due to requests for excessive personal information.
•59% reported limiting the personal information they share with brands.
•A Path Forward: Encouragingly, 89% of consumers believe it’s still possible for organisations to win back their trust.
The report also highlights that while 72% of Australia’s leading brands reference AI, ADM, or other innovative technologies in their annual reports, only 4% explain their use in privacy policies.
Says Lucy Mannering, trust and privacy lead partner, Deloitte Digital: “A growing concern among consumers around the loss of control of personal information, increased data breaches, and lack of transparency has led to much-needed Australian privacy law reforms.
“Savvy organisations can seize this opportunity to ensure their privacy practices are fair, ethical, secure, and protect their business and consumers into the future. Investing now in robust AI and ADM management practices will help organisations get ahead and ensure their business is fit for the digital age.
“It’s also important to remember that raising awareness of AI and ADM usage empowers consumers to make informed choices about how their personal information is used throughout their digital customer journeys. By fostering a future where technology and trust go hand in hand, we can ensure innovation serves everyone responsibly, enhancing lives while respecting privacy.”
Says Daniella Kafouris, trust and privacy partner, Deloitte Digital: “When adopting AI and ADM technologies, it’s crucial for organisations to balance innovation with ethics by consistently asking, ‘Just because we can, should we?’. This approach ensures new technologies benefit all parties while maintaining ethical standards.
“Organisations should be providing clear privacy policies, requesting only necessary information from consumers, and prioritising the provision of core services over excessive marketing or profiling to maintain a loyal customer base.
“This year’s Privacy Index includes a set of ‘no regrets’ moves to help organisations develop a responsible framework for AI and ADM adoption, safeguarding privacy and building trust.”
Download the report here.