Consumer trust has taken a nosedive and AI is adding to the trust bust, as organisations handle more personal information, Deloitte's Privacy Index 2024: A Transparent Tomorrow report shows.
The report exames 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 – the most significant since 2014.
One thousand Australian consumers were asked which industry they trust most with their personal information.
The top answer this year (30%) 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% and bottom of the trust table were real estate and telecommunications and media. This lack of trust is proving bad for businesses with 50% (up from 35% last year) of consumers choosing not to buy a product or service because they were asked to provide too much personal information.
59% of respondents also say they have, or will, limit the personal information they give brands.
The good news for businesses is that 89% 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% of Australia’s leading brands mention using AI, ADM, or other innovative technologies in their annual report, only 4% explain their use in their privacy policy.
Deloitte Digital trust and privacy lead partner Lucy Mannering said 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.
“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," Mannering said.
"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.”
Deloitte Digital trust and privacy partner Daniella Kafouris said 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," Kafouris said.
“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.”
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.