Diamond holds a PhD in Computing, Information Technology and Engineering, from the University of East London, England, with a focus on data visualization. Diamond was the Artistic Director of Media and Visual Art and Director of Research at the Banff Centre, where she created the Banff New Media Institute (BNMI) in 1995 and led it until 2005. Diamond taught at Emily Carr Institute of Art and Design, at Capilano College, at the California Institute for the Arts and remains an Adjunct Professor at UCLA.
She is a member of the Royal Canadian Academy of Arts. In 2012 she was made a member of the Order of Ontario.
Diamond's work as an artist was shown in exhibitions including at the National Gallery of Canada, the Museum of Modern Art, and the Vancouver Art Gallery. In 1992, Diamond's work was shown in a retrospective titled Memories Revisited, History Retold, organized by the National Gallery of Canada. During her time as an undergraduate student at Simon Fraser University, Diamond created the Women's Labour History Project, which, beginning in 1978, collected the oral histories of women who were active in the trade union movement, published resources on the women, toured a photo exhibition, and produced videos of the histories. The project is now housed in the Simon Fraser University Archives.