What Is Automated Decision-Making (ADM)?
Automated Decision-Making (ADM) is the process of making a decision about an individual by automated means without meaningful human involvement.
Automated Decision-Making (ADM) — the process of making a decision about an individual by automated means without meaningful human involvement.
ADM is the central concept in much AI rights regulation. GDPR Article 22 gives individuals the right not to be subject to solely automated decisions with legal or similarly significant effects, subject to exceptions. Australia's Privacy Act reforms introduce ADM transparency requirements. The key legal threshold is "solely" — adding token human review does not remove a decision from the ADM rules if that review is not genuinely meaningful. ADM in credit, hiring, insurance, and benefits attracts the most regulatory attention.
Source: GDPR, Article 22; Privacy Act 1988 (Cth) reforms
Plain-language explanation
ADM is the central concept in much AI rights regulation. GDPR Article 22 gives individuals the right not to be subject to solely automated decisions with legal or similarly significant effects, subject to exceptions. Australia's Privacy Act reforms introduce ADM transparency requirements. The key legal threshold is "solely" — adding token human review does not remove a decision from the ADM rules if that review is not genuinely meaningful. ADM in credit, hiring, insurance, and benefits attracts the most regulatory attention.
See where you stand on AI governance
Take the free 7-question maturity assessment and get a personalised action plan.
Free assessment — 3 minutes →