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Data Pseudonymization

The processing of personal data so that it can no longer be attributed to a specific individual without additional information, which is kept separately and securely.

In plain language

Replacing identifying information with fake IDs, but keeping a secret key that can link them back if needed. Like assigning everyone a random number; more useful than full anonymisation, but not as private.

Why this matters

Pseudonymisation is recognised under the Australian Privacy Act and other frameworks as a valid data protection measure. Your AI governance framework should define when pseudonymisation is appropriate, what safeguards protect the linking keys and how long keys are retained.

Relevance

Governance

Pseudonymisation provides a structured approach to data protection that balances privacy with data utility, reducing compliance burden whilst maintaining analytical value.

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