Cybersecurity Policy Report, Privacy, Productivity Can Coexist, Australian Privacy Commissioner Says, (Aug 1, 2025)

By Tony Foley

Australian Privacy Commissioner Carly Kind said in a blog post that strong privacy governance and safeguards were essential for businesses to gain advantages from artificial intelligence and build trust and confidence in the community.

In her post yesterday, Commissioner Kind noted that the Australian Productivity Commission was scheduled to issue an interim report on its inquiry into harnessing data and digital technology, the third of five productivity inquiries commissioned by the Australian government. Commissioner Kind said the inquiry was of interest to the Office of the Australian Information Commissioner (OAIC), given that data and the digital world were intrinsic in its work across privacy, access to government information, and government information management. The inquiry is exporting several reform areas, one of which is exploring how to embrace reform to enable AI’s “productivity potential.”

Commissioner Kind said privacy often was pitted against productivity and pointed out that submissions made by large tech companies in connection with the inquiry had asserted that enforcement of robust privacy laws might impar their ability to develop AI tools enabling such productivity across the Australian economy. She reiterated the OAIC’s recognition of AI’s potential to benefit the economy by improving efficiency and productivity across a range of sectors.

However, Commissioner Kind added, the efficiency and productivity dividend of AI will not be realized if AI tools don’t enjoy the trust and confidence of the Australian public. Several surveys have indicated the public’s trepidation with AI development, with 83% of Australians saying that companies should seek user consent before using their data to train AI models, while 84% want more control and choice over the collection and use of their information.

Commissioner Kind maintained that it was clear that existing privacy laws applied to AI technologies and that regulated entities must ensure that their use of AI adheres to their legal obligations. She cited a report into a diagnostic imaging network that allegedly disclosed patient data to train AI models, calling it a case study of what one company did to adhere to privacy laws when developing AI models. The study demonstrates how good governance, combined with planning for privacy from the start, can support an organization in adopting new and innovative data driven technologies that protects individual rights, she said.

“Strong privacy governance and safeguards are essential for businesses to gain advantage from AI and build trust and confidence in the community,” Commissioner Kind said. “Good privacy practices and clear laws will support innovation, and deliver benefits for all. A more productive economy is contingent upon Australian consumers confidently participating in the digital economy and businesses retaining the trust of their customers in deploying new innovations. Privacy is an important foundation to enable that to happen.”

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