A newly released Deloitte report has warned that consumer trust has taken a nosedive over perceptions that personal information is poorly managed across a range of major industry and government sectors. 

The rise in use of technology such as artificial intelligence (AI), generative AI (GenAI) and automated-decision making (ADM) by businesses of all sizes has further exacerbated this trend. 

Deloitte reviewed the AI and ADM management practices among what the firm said were "100 leading Australian brands across 10 industries. This was done by comparing publically available information against current privacy practices and upcoming Australian privacy reforms. 

Here, the report also noted that despite embracing new technology, many organisations are failing to explain their AI and ADM practices in their privacy policies. While 72 per cent of Australia's leading brands mention using AI, ADM or other innovative technologies in their annual report, only 4 per cent explain their use in their privacy policy, according to Deloitte's review of publically available documents.

The other aspect of Deloitte's analysis, and central to the report's findings, were the responses from 1000 Australian consumers. They were asked a series of questions to define which industries they most trusted with their personal information. 

While not specifically stated in its report, the firm implied that it adopted some broad definitions for each industry sector. That is, in assessing privacy perceptions by consumers in the finance sector, for instances – businesses covered can be expected to include banks, credit unions, mortgage brokers, financial advisors, and fintech companies.

The top answer this year (30 per cent) was 'none of the above' with consumers citing the proliferation of data breaches as proof that systems aren't safe. Given that consumers' views are more likely to be swayed their by media reports of data breaches than by reading corporate privacy statements, this should come as no surprise.

Government came a close second, with 28 per cent of respondents and organisations said they'd agreed that to use AI responsibly. The good news for the finance industry is that it was ranked equal third (12 per cent) – alongside the education and employment sector – and bottom of the trust table were real estate and telecommunications and media.

However, the sector itself – notably among listed banks and other listed finance industry operations – has presented an uneven performance in building trust for the various technology platforms over the past year alone: in September last year ASIC sued Westpac in the Federal Court with the proceedings related to a technology failure where applications for hardship assistance submitted between 2015 and 2022 were not assessed in a timely manner.

The differences noted between the rankings in Deloitte’s research and the consumer survey results arise from the different methodologies and perspectives captured in the report:

Meanwhile, some of the major banks have been enthusiastically supporting the use of AI platforms in their own operations, and those of their business customers. In June, CommBank published survey results indicating 59 per cent of SMEs "have invested or plan to invest in AI in the next five years". 

In