Privacy concerns rise as AI adoption grows – Privacy Commissioner

NEWS - eHealthNews.nz editor Rebecca McBeth 

Nearly two-thirds of Kiwis are worried about government agencies or businesses using AI to make decisions about them, using their personal information, the Privacy Commissioner says.

Michael Webster spoke at the Digital Health AI Summit on May 21 where he highlighted growing concerns among New Zealanders about AI and personal data protection.

Webster revealed findings from the recently released Office of the Privacy Commissioner's 2025 Privacy Survey showing nearly half of New Zealanders are concerned about their privacy and personal information protection.

"Sixty-two percent were concerned about government agencies or businesses organisations, using AI to make decisions about them, using their personal information” he said.

“Eighty-two percent agree that they want more control and choice over the collection and use of their personal information.”

The survey also found more than two thirds of respondents would consider changing service providers if they heard of poor privacy and security practices.

Webster said that privacy considerations are particularly important in healthcare, where personal health information represents "our most intimate and personal and private information."

"Health information matters extremely deeply to New Zealanders and how it is managed and how it is well stewarded," he said.

Rather than viewing privacy as an obstacle to innovation, Webster said it is essential to building public trust in new technologies like AI.

"For innovation to flourish, privacy must be respected. For progress to be made, reinforcing trust is essential," he said.

The Commissioner told Summit attendees that AI tools present specific privacy challenges because they enable new ways to gather and use information about people.

"When AI tools start drawing on information about people or start to make claims about people, that's when using AI becomes a privacy issue," Webster explained.

"Every time you use an AI tool, depending on how it is set up, you are helping it learn and train itself. It takes the data you put into it, all the questions you have asked it, and adds that to its data sets.”

This creates risks that personal information entered into AI tools could be retained or disclosed by providers and used to continue training their models.

Webster cited a 2024 Cisco Consumer Privacy Survey showing that while 63 percent of consumers believe AI can improve their lives, 84 percent worry about data entered into AI tools becoming public.

Despite this, the survey found nearly a third of generative AI users were entering personal or confidential information into these tools, including financial and health details.

The Office of the Privacy Commissioner has developed detailed guidance for organisations using AI, covering consent, storage, security, accuracy, and limits on use and disclosure. The guidance is available on the Privacy Commissioner's website.

"Enabling the benefits from the continued uptake of AI tools will require proactive work to assure New Zealanders that risks are being considered and managed, and that includes risks to privacy," Webster said.

Image: Privacy Commissioner Michael Webster

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