As artificial intelligence (AI) continues to develop, businesses and consumers are becoming more concerned about how to manage the relationship between privacy and AI.

For industry and the public sector, AI, machine learning and using big data has opened new avenues for growth and development. But this brings with it risks to privacy that may make consumers wary of the process.

In Victoria, the Privacy and Data Protection Act 2014 regulates the collection and handling of all personal information in the public sector. Private organisations are subject to the federal Privacy Act 1988.

These laws recognise some of the complexities around privacy and allow for flexibility in how it can be protected in an evolving landscape. But where they fall short in managing AI is through providing a clear understanding of what constitutes personal information. As new technology is developed, new forms of information can be created.

From a business perspective, this can be both a blessing and a challenge. Establishing and maintaining trust between a business and its customers is crucial, but the benefits of data-driven growth are difficult to ignore.

Businesses can take some steps to ensure they are safeguarding the privacy of their customers and themselves:

  • Be transparent: Businesses should be upfront with their clients about what data is being collected and how it is being used. Some form of consent is also recommended, allowing customers the choice of what, if any, of their information is used or stored.
  • Prioritise security: The security a business employs to protect personal information is crucial. It should be entrenched into the processes and systems of a business and not implemented as an afterthought.
  • Create good governance: While there are federal and international laws to abide by, a business should also institute methods of good governance internally. This means clarifying who deals with data and how. More importantly, good governance must be enforced.

Blaine Hattie is a business lawyer and principal at Sutton Laurence King Lawyers.

For expert advice on commercial law in Victoria contact Sutton Laurence King Lawyers today on 03 9070 9810 or  for help.