Other · Commercial & Corporate Advisory

Board paper and resolution approving adoption of an AI system (risk, accountability, monitoring)

Board paper template, decision resolution and minute extract for approving a material AI system. It covers the business case, legal and privacy risks, accountability, human oversight, monitoring and the questions directors should ask.

Kind
Other. A precedent that fits none of the other kinds.
Where it applies
Australia, European Union
AI use
Yellow AI can help in set ways. A lawyer checks specific points before use.
Law stated as at
17 October 2026
Status
Maintained. Checked against the cited sources on 17 October 2026.
Version
1
Source
Written for this library

When to use it

Use when management asks the board, or a delegated committee, to approve an AI system that will process customer or employee data, inform decisions about people, or be material to operations. For low-risk productivity tools, a management-level approval under the AI policy is usually enough.

How AI may be used

AI may draft the risk summary and register entries from management material. Directors must form and record their own informed judgment, and the lawyer checks the legal analysis.

AI may

  • Draft the risk table and AI register entry from the vendor’s documentation and the project brief
  • List questions the paper does not yet answer, using the directors’ question list in Part C
  • Summarise the vendor contract terms on data use, retention and liability, with clause references

AI must not

  • Must not write the recommendation or the directors’ reasons as if they were the board’s own
  • Must not describe testing results, accuracy or bias findings that management has not supplied
  • Must not process the vendor’s confidential pricing or security documents in an unapproved tool

The lawyer checks

  • Privacy analysis covers APP 1.7 to 1.9 from 10 December 2026 if the system informs decisions about individuals
  • Claims about the system in the paper are supported by test evidence
  • Resolution conditions are specific and someone is accountable for each

Method: how the Green, Yellow and Red levels are decided. This is guidance for planning, not legal advice.

Authorities

Official form

Open the official form. Always use the current version from the issuer.

Read the full text

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