Responsible Use of AI in Australian Businesses: Part Two
Our first article on responsible AI use last week really struck a chord, and so we’ve authored another one to help out Australian businesses in navigating this landscape.
Artificial Intelligence (AI) is transforming how Australian businesses operate, from streamlining customer service to improving operational efficiency. However, the benefits come with significant responsibilities, particularly around privacy, governance, and trust. This guide builds on core AI privacy principles with additional strategies to help businesses adopt AI ethically, lawfully, and effectively.
1. Strengthening Privacy with Clear Guidelines
Australian businesses should align with OAIC’s guidance on how privacy law applies to AI, especially when selecting tools and training generative models [https://www.oaic.gov.au/news/media-centre/new-ai-guidance-makes-privacy-compliance-easier-for-business]. Privacy-by-design is essential—businesses should:
Limit the collection of personal data to what is strictly necessary.
Use anonymised or synthetic datasets whenever possible.
Encrypt data in storage and during transfer to protect against unauthorised access.
2. Piloting AI: Start Small, Evaluate Thoroughly
Launching AI projects on a small scale allows businesses to assess performance, identify risks, and refine systems before full implementation. Victoria’s Business AI guidelines recommend [https://business.vic.gov.au/learning-and-advice/hub/what-you-should-know-when-using-ai-for-your-business]:
Conducting controlled pilot programs with clear success metrics.
Documenting results and using findings to improve subsequent iterations.
3. Aligning with National Standards
The Voluntary AI Safety Standard (VAISS) outlines 10 best-practice principles for safe and responsible AI, including transparency, accountability, and continuous monitoring [https://business.gov.au/news/helping-businesses-be-safe-and-responsible-when-using-ai]. Businesses can strengthen compliance by:
Embedding VAISS principles into procurement policies and vendor contracts.
Establishing internal review processes to monitor adherence to these standards.
4. Addressing the AI Trust Gap
A University of Melbourne and KPMG study found that while half of Australians use AI regularly, only 36% trust it, and just 30% believe the benefits outweigh the risks [https://www.news.com.au/finance/economy/australian-economy/falling-behind-new-report-reveals-big-ai-wake-up-call-for-australia/news-story/5f866a86d1223e899d9eac4aa732594f]. Trust is built through governance, transparency, and accountability. Steps include:
Developing board-level AI governance policies, usage inventories, and staff training [https://www.theaustralian.com.au/business/companies/legal-danger-to-directors-of-taking-the-eye-off-ai/news-story/ee92760af8e37f87e51614b7d119ed83].
Testing for bias, especially in high-impact areas such as recruitment, finance, and customer decision-making [https://www.theaustralian.com.au/business/tech-journal/leaders-must-move-fast-to-close-the-ai-trust-gap/news-story/6959fb8a47fda51acb30093fd18d5fec].
5. Mitigating Bias and Promoting Inclusion
The Australian Human Rights Commissioner has warned that AI systems can perpetuate racial and gender biases without proper safeguards [https://www.theguardian.com/technology/2025/aug/13/ai-artificial-intelligence-racism-sexism-australia-human-rights-commissioner]. Businesses should:
Use local datasets to ensure cultural and contextual relevance.
Involve diverse stakeholder groups in testing and feedback.
Keep human oversight in decision-making to ensure fairness and accuracy.
6. Building Workforce Capability
AI adoption requires an informed workforce. AI literacy in Australia remains low—only 24% of Australians have received training, compared to 40% globally [https://www.news.com.au/finance/economy/australian-economy/falling-behind-new-report-reveals-big-ai-wake-up-call-for-australia/news-story/5f866a86d1223e899d9eac4aa732594f]. To build capability:
Partner with education providers such as the University of Melbourne for AI ethics and governance training [https://www.theguardian.com/university-of-melbourne-whats-next/2025/apr/15/from-ai-ethics-to-inclusive-leadership-how-professional-development-gives-businesses-an-edge].
Deliver internal workshops that combine technical skills with case studies on responsible AI use.
7. Embedding AI into Workflows with Transparency
For AI to deliver sustained value, it must be integrated into existing processes while maintaining public and staff trust. According to Deloitte research, organisations with strong governance see higher adoption rates and stronger returns [https://www.theaustralian.com.au/business/tech-journal/leaders-must-move-fast-to-close-the-ai-trust-gap/news-story/6959fb8a47fda51acb30093fd18d5fec]. Practical measures include:
Communicating clearly to customers about how AI is used in products and services.
Implementing tools in ways that support—rather than replace—human decision-making.
Using AI in areas such as marketing automation, inventory planning, or recruitment screening while following privacy best practices [https://pattens.com/small-business/implementing-responsible-ai/].
By combining established privacy principles with robust governance, bias mitigation, staff capability building, and transparent integration, Australian businesses can adopt AI in ways that are both responsible and commercially beneficial. Reach out to James Anthony Consulting today to find our more about how to implement AI in your business!
