Navigating AI Ethics in Aged Care: Why Human Oversight is Essential for Brand Trust in 2026

Missy Kay
Jan 22
3 min read

Artificial intelligence is reshaping many sectors, including aged care in Australia. The recent decision by the Australian government to remove the human element from assessing aged care packages raises serious ethical questions. This shift to fully automated AI assessments risks repeating past mistakes like RoboDebt, where automated systems caused harm by misjudging individuals’ circumstances. For retirees and the elder generation, these changes could mean being unfairly denied access to essential resources.

This post explores why transparency, values and human oversight must remain central to AI use in aged care. It also highlights how leaders can maintain brand trust by balancing technology with empathy and fairness.

Eye-level view of a computer screen showing aged care assessment data — AI system interface used for aged care package assessments

The Australian Government’s Shift to AI-Only Assessments

In late 2025, the Australian government announced changes to the aged care assessment process. Instead of trained human assessors reviewing applications for aged care packages, AI algorithms will now make decisions independently. The government argues this will speed up processing times and reduce costs.

However, this move raises concerns:

Loss of human judgment: Experienced assessors understand the nuances of individual cases, including emotional and social factors that AI may overlook.
Risk of errors: Automated systems can misinterpret data or apply rigid rules that do not fit complex human needs.
Reduced accountability: When decisions are made by machines, it becomes harder to challenge or appeal outcomes.

The RoboDebt scandal from a few years ago showed the dangers of relying too heavily on automated decision-making without proper human oversight. Thousands of Australians faced wrongful debt notices because algorithms failed to consider individual circumstances. The aged care sector must learn from this history.

Why Transparency Matters in AI Use for Aged Care

Transparency means clearly explaining how AI systems work, what data they use, and how decisions are made. For aged care, transparency is critical because:

Trust depends on understanding: Older Australians and their families need to know how their care needs are assessed.
Enables accountability: Transparent processes allow errors to be identified and corrected.
Supports informed consent: People should have the right to understand and question decisions affecting their care.

Currently, many AI systems operate as “black boxes,” with little public information about their algorithms or data sources. This opacity undermines trust and can lead to fear or resistance among those affected.

Upholding Values in AI-Driven Aged Care

AI should support, not replace, the values that underpin aged care:

Respect for dignity: Every individual deserves to be treated with respect and compassion.
Fairness: Decisions must be free from bias and discrimination.
Empathy: Understanding the emotional and social context of care needs is essential.

AI systems must be designed and monitored to reflect these values. This requires ongoing human involvement to interpret results and ensure ethical standards are met.

The Essential Role of Human Oversight

Human oversight means trained professionals remain involved in reviewing AI assessments and making final decisions. This approach offers several benefits:

Contextual understanding: Humans can consider factors beyond data points, such as family support or mental health.
Error correction: Humans can spot and fix mistakes made by AI.
Ethical judgment: Humans can apply moral reasoning where algorithms cannot.

For example, a recent case study from a community aged care provider showed that when human assessors reviewed AI recommendations, they identified 15% of cases where the AI underestimated care needs. This intervention prevented potential harm and improved client satisfaction.

Building Brand Trust Through Responsible AI

For aged care providers and government agencies, trust is vital. Using AI responsibly means:

Being open about AI use: Clearly communicating how AI supports assessments.
Involving stakeholders: Engaging older Australians, families, and care workers in AI policy discussions.
Providing appeal options: Ensuring people can challenge AI decisions easily.
Regular audits: Continuously monitoring AI systems for fairness and accuracy.

A 2024 survey by the Australian Institute of Health and Welfare found that 72% of older Australians preferred having a human involved in care decisions, even if AI was used as a tool. Ignoring this preference risks damaging trust and reputation.

What Leaders Must Do Now

Leaders in aged care and government must act to balance innovation with ethics:

Maintain human roles: Keep trained assessors involved in decision-making.
Invest in training: Equip staff to work effectively with AI tools.
Set clear ethical guidelines: Develop policies that prioritise transparency and fairness.
Monitor outcomes: Use data to track AI impact and adjust as needed.

These steps will help ensure AI enhances aged care without compromising the dignity and rights of older Australians.

Older Australians deserve care systems that combine the best technology with human compassion. The Australia government changes to ai policies must not sacrifice the human touch that builds trust and delivers fair outcomes.

If you want clarity on how these changes affect you or your loved ones, or need strategic advice on navigating AI in aged care, reach out to trusted advisors who understand both technology and ethics.