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Amazon’s new Alexa policy sparks privacy concerns
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Date 10 April 2025
Users of Amazon’s Alexa-enabled Echo devices in Australia and around the world may have noticed something different — or perhaps they haven’t. That’s part of the concern, according to experts.
In a recent interview with ABC Radio National’s Life Matters, Prof Daniel Angus, Chief Investigator at the ARC Centre of Excellence for Automated Decision-Making and Society, explained that Amazon has made a significant and controversial change: all audio captured by its Echo smart speakers is now automatically sent to the cloud by default.
Users can opt out, but doing so limits the device’s ability to personalise responses and learn user preferences. The move has sparked a new wave of concern over consumer privacy, AI hype, and the growing power of Big Tech.
“This move is diabolical,” Prof Angus told Life Matters. “It breaks that fundamental trust.”
A Symptom of the AI Hype Cycle
Prof Angus argues that Amazon’s decision is not just a privacy issue, but part of a broader, more concerning trend.
“We’re in a hype cycle around AI,” he said. “Companies need us to believe in the idea of AI to maintain growth. This is not just about functionality — it’s about market dominance and feeding the myth of inevitable AI revolution.”
At the core of this trend is data. More data means better AI models, and smart speaker interactions — even something as simple as setting a timer — are a rich source of training material.
He pointed to Amazon’s market saturation and reliance on growth-at-all-costs as motivations for expanding data collection practices without clear consumer benefit.
Privacy or Access: A Sophie’s Choice?
Virtual assistants have real benefits, particularly for people with accessibility needs. But according to Angus, users should not have to choose between functionality and their right to privacy.
“Audio is incredibly private,” he said. “It’s gold for accessibility, but it can also be incredibly revealing.”
Historically, much of the processing by virtual assistants happened on-device, a method known as edge computing. This approach enabled commands to be interpreted locally, enhancing both performance and privacy. But the shift toward cloud-based processing threatens this balance.
Angus urged regulators to act, warning that without intervention, consumers could be locked into unfair trade-offs.
“We do this through regulation. Specifically, through privacy reform,” he said. “Privacy settings are fundamental to stopping companies from exploiting our data for capital gain.”
Reform on the Horizon?
Australia is currently reviewing its privacy frameworks, with new attention on children’s data and AI regulation. Angus suggested that Amazon’s move may be a catalyst for change.
“I think they’ve overplayed their hand,” he said. “This could be a wake-up call for both the public and policymakers.”
Listen to the full interview How your virtual assistant is listening to you on ABC Listen.
