Can an Australian company sell its data to AI?

Program fit for Australian companies and what the OAIC says about using existing personal information to train generative AI.

Last updated 3 sources cited1 min read

Short answer: Yes, under published rules: Mode accepts Australian companies. The OAIC says that without consent for a secondary, AI-related purpose, an organization must show the use would be reasonably expected by the individual and related to the primary purpose, and that de-identifying is itself a secondary use.

On this page
  1. Program fit
  2. What the OAIC says
  3. What it means for you
  4. Frequently asked questions
  5. Sources

Program fit

Mode lists minimum team sizes of 10+ employees for legal, 15+ for accounting, medical and finance, and 50+ for all other businesses, for companies based in the US, Canada, the UK or Australia with several years of records they own (Mode). micro1 asks for 30+ employees, mostly English data, and says it is prioritizing US companies (micro1).

What the OAIC says

'Where developers do not have consent for a secondary, AI-related purpose, they must be able to establish that this secondary use would be reasonably expected by the individual, taking particular account of their expectations at the time of collection, and that it is related (or directly related, for sensitive information) to the primary purpose' (OAIC). It also says organisations can only use or disclose personal information for the primary purpose of collection unless they have consent or an exception applies.

What it means for you

Disclosing staff or customer personal information to a buyer for training is a secondary purpose. Exclude it or get advice on consent and exceptions.

This is general information, not legal advice. Talk to your own attorney or compliance advisor before you share or license any records.

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Frequently asked questions

Is the guidance aimed at developers?

Mostly, but its use-and-disclosure analysis applies to organisations sharing data with developers.

Does de-identification avoid the issue?

The OAIC says de-identifying personal information is itself a secondary-purpose use.

Sources

  1. Mode / BizBuyData referral pagebizbuydata.com
  2. micro1 company referral pagemicro1.ai
  3. OAIC: Guidance on privacy and developing and training generative AI modelsoaic.gov.au

Referral-fee disclosure: we may be paid by a program if your company signs with it after using this site. General information only, not legal advice.

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