Automated Decision-Making
The use of algorithms or AI systems to make or substantially inform decisions about individuals without meaningful human review.
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. Organisations will be required to tell individuals when ADM has been used to make a decision about them and, in some cases, how it worked.
Why it matters for Australian business
From 10 December 2026 Australian businesses using AI systems that make or substantially inform decisions affecting individuals will need to meet new transparency requirements under the reformed Privacy Act. That covers loan approvals, recruitment filters, insurance pricing, benefits assessments and a wide range of AI-assisted workflows. We help businesses map where ADM occurs in their operations, assess which decisions are in scope, and implement the disclosure and human-review controls needed to comply before the commencement date.