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Glossary · Australian Compliance

Automated Decision-Making

The use of algorithms or AI systems to make or substantially inform decisions about individuals without meaningful human review.

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In detail

Automated decision-making (ADM) refers to any process where a system produces a decision, recommendation or output about an individual with little or no human judgement applied. Examples include AI driven credit scoring, algorithmic CV screening, automated insurance pricing and AI triage tools in healthcare. The Attorney-General's Department Privacy Act reform program proposes transparency obligations for ADM that affect personal information, commencing 10 December 2026. The reforms will require organisations to tell individuals when ADM played a role in a decision about them and, in some cases, how it worked.

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