---
title: "AI decision system impact and fairness assessment (firm or client systems)"
url: "https://ailawframework.com/precedents/ai-decision-systems/ai-decision-system-impact-assessment"
type: "precedent"
site: "AI Law Framework"
id: "a45-ai-decision-system-impact-assessment"
area_id: "A45"
kind: "form"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# AI decision system impact and fairness assessment (firm or client systems)

> Assessment form for any AI or automated system that makes or informs decisions about people: maps decisions and affected people, data, legal risks (privacy, discrimination, consumer, sector rules, EU AI Act), testing,…

Canonical page: https://ailawframework.com/precedents/ai-decision-systems/ai-decision-system-impact-assessment  
Law stated as at: 2026-10-17

Site index for agents: https://ailawframework.com/llms.txt

Assessment form for any AI or automated system that makes or informs decisions about people: maps decisions and affected people, data, legal risks (privacy, discrimination, consumer, sector rules, EU AI Act), testing, human review, transparency and sign-off.

## Key facts

- Kind: Form. A form to complete, or a guide to completing an official one.
- Practice area: [AI decision systems](https://ailawframework.com/precedents/ai-decision-systems.md)
- Jurisdictions: Australia, European Union
- AI level: Yellow. AI can help in set ways. A lawyer checks specific points before use.
- Law stated as at: 2026-10-17
- Status: Maintained. Checked on 2026-10-17 against the 10 authorities it cites, for Australia and European Union.

## When to use it

Complete before deploying or materially changing a system that makes or informs decisions about individuals (recruitment, performance, intake triage, AML/CTF risk rating, credit, claims), whether the firm's own or a client's system the firm is advising on. Not needed for tools that only assist drafting.

## How AI may be used

AI can structure the assessment from the system description and tabulate test outcomes on a lawyer-approved test set, but mapping which decisions significantly affect people, and judging legality and fairness, is lawyer-led.

**AI may:**

- Structure the assessment from the system description: data flows, affected people, decisions, risks and sign-off questions.
- From a lawyer-approved test set, tabulate outcomes by the attributes the lawyer has listed and mark unexplained differences.
- List candidate privacy, discrimination, consumer and sector issues with the documents that support each row.

**AI must not:**

- Must not decide whether a decision "significantly affects" an individual or whether a difference in outcomes is lawful.
- Must not use real personal information for testing unless approved and minimised.
- Must not sign off the assessment.

**The lawyer checks:**

- Every decision the system makes or informs is mapped, including refusals and failures to act.
- Testing covered the relevant attributes and the results are explained or remedied.
- A person can review and override each significant decision, and affected people can seek review.

## Authorities

- [Privacy Act 1988 (Cth) Sch 1 APP 1.7 to 1.9 (automated decision transparency, inserted by the Privacy and Other Legislation Amendment Act 2024 (Cth); commencing 10 December 2026)](https://www.legislation.gov.au/C2024A00128/asmade)
- [OAIC, Australian Privacy Principles guidelines, chapter 1 (APP 1.7 to 1.9: decisions, "arranged for", "substantially and directly related")](https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-guidelines/chapter-1-app-1-open-and-transparent-management-of-personal-information)
- [Privacy Act 1988 (Cth) Sch 1 APPs 3, 5, 6, 10 and 11](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Racial Discrimination Act 1975 (Cth)](https://www.legislation.gov.au/C2004A00274/latest)
- [Sex Discrimination Act 1984 (Cth)](https://www.legislation.gov.au/C2004A02868/latest)
- [Disability Discrimination Act 1992 (Cth)](https://www.legislation.gov.au/C2004A04426/latest/text)
- [Age Discrimination Act 2004 (Cth)](https://www.legislation.gov.au/C2004A01302/latest)
- [Fair Work Act 2009 (Cth) Pt 3-1 (general protections)](https://www.legislation.gov.au/C2009A00028/latest)
- [EU: Regulation (EU) 2024/1689 (AI Act) arts 26 and 27 and Annex III (deployer obligations; fundamental rights impact assessment; high-risk uses), with high-risk application dates deferred by Regulation (EU) 2026/1744](https://eur-lex.europa.eu/eli/reg/2026/1744/oj/eng)
- [Digital Transformation Agency, Australian Government AI impact assessment tool](https://www.digital.gov.au/ai/impact-assessment-tool/introduction)

## Official form

[Official form](https://www.digital.gov.au/ai/impact-assessment-tool/introduction)

## Full text and drafting notes

The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/ai-decision-systems/ai-decision-system-impact-assessment and through the signed-in MCP connector https://ailawframework.com/mcp/firm.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*