Artificial intelligence : Understanding Privacy Obligations

Many artificial intelligence (AI) technologies rely on enormous amounts of data – which may include personal information – in order to train and test algorithms. When Victorian public sector (VPS) organisations collect personal information to train an AI model, feed personal information into an AI system, or use AI to infer information about individuals, the Information Privacy Principles (IPPs) of the Privacy and Data Protection Act 2014 (PDP Act) apply.

The purpose of this guidance is to assist VPS organisations to consider their privacy obligations when using or considering the use of personal information in AI systems or applications. It will cover the collection, use, handling and governance of personal information within this context. Organisations should also conduct a privacy impact assessment (PIA) when designing or implementing AI systems, to help identify potential privacy risks associated with the collection and use of personal information in the AI system. PIAs are discussed later in this guidance.

What is AI? Artificial intelligence, or ‘AI’, is a way for computers to perform tasks that require abstraction and which would ordinarily be performed by humans. AI is used as an umbrella term to describe a collection of different techniques and technologies, including machine learning, speech recognition, natural language processing, robotics, and predictive analytics. AI is present in many of the day-to-day interactions in our personal lives – for example, when we give voice commands on our mobile phones, or the movie recommendations on streaming services.

The use of AI applications and systems is also growing in the public sector, enabled by the generation, availability and variety of sources of data accessible to government. Organisations are increasingly turning to AI to help carry out their functions, automate decision making processes, inform policy, and deliver services to the public. Common applications of AI include identifying objects, making predictions, translating language and processing very large amounts of information. For example, an increasingly common use of AI in the public sector is the use of chat bots to provide customer service and advice to individuals on a website.

While the use of an AI system to process personal information can deliver significant benefits, VPS organisations should consider whether the deployment of such a system is necessary to address an identified problem, and whether it is the best solution to that problem – AI systems should not necessarily be deployed simply because they are available.

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