When it comes to organisations handling personal information, consumer trust has taken a nosedive and AI is adding to the trust bust, finds a newly released Deloitte report, “Privacy Index 2024: A Transparent Tomorrow.”
The report found a lack of consumer trust in organisations to use AI responsibly is impacting all industries. One thousand Australian consumers were asked which industry they trust most with their personal information. The top answer this year (30 per cent) was ‘none of the above’ with consumers citing the proliferation of data breaches as proof that systems aren’t safe. Government came a close second with 28 per cent and bottom of the trust table were real estate and telecommunications and media.
The report examines AI and ADM management practices across 10 key industries to analyse current privacy practices and whether they can withstand future technological advances and the upcoming Australian privacy reforms. It gives organisations data-driven recommendations and actionable insights.
“A growing concern among consumers around the loss of control of personal information, increased data breaches, as well as lack of transparency and mismanagement of personal information has led to much-needed Australian privacy law reforms,” said Deloitte digital trust & privacy lead partner Lucy Mannering.
“Savvy organisations can seize this opportunity to get ahead of the legislation 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,” added Mannering.
This lack of trust is proving bad for businesses with 50 per cent (up from 35 per cent last year) of consumers choosing not to buy a product or service because they were asked to provide too much personal information. 59 per cent of respondents also say they have, or will, limit the personal information they give brands. The good news for businesses is that 89 per cent of consumers say it’s not too late for organisations to win back trust.
The report also found that despite embracing new technology, many organisations are failing to explain their AI and ADM practices in their privacy policies. While 72 per cent of Australia’s leading brands mention using AI, ADM, or other innovative technologies in their annual report, only 4 per cent explain their use in their privacy policy.
“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, said Mannering.
“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,” said Deloitte digital trust & privacy partner Daniella Kafouris.
“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,” added Kafouris.
“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”.
