---
title: "Workplace generative AI acceptable use policy"
url: "https://ailawframework.com/precedents/employment-and-workplace-relations/workplace-ai-use-policy"
type: "precedent"
site: "AI Law Framework"
id: "a14-workplace-ai-use-policy"
area_id: "A14"
kind: "policy"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# Workplace generative AI acceptable use policy

> Employer policy setting which AI tools staff may use, what information must never go into them, how outputs are checked and disclosed, and how the policy links to privacy, surveillance, WHS and discipline.

Canonical page: https://ailawframework.com/precedents/employment-and-workplace-relations/workplace-ai-use-policy  
Law stated as at: 2026-10-17

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

## Key facts

- Kind: Policy. A policy or procedure for a firm or client.
- Practice area: [Employment & Workplace Relations](https://ailawframework.com/precedents/employment-and-workplace-relations.md)
- Jurisdictions: Australia, New South Wales
- 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 9 authorities it cites, for Australia and New South Wales.

## When to use it

Use for an employer client introducing or tightening rules on staff use of generative AI. Align it with the client's actual tools, IT controls and contracts before issue; a policy that does not match reality is worse than none.

## How AI may be used

AI can draft the policy from the client's tool list and risk register, but the firm must align it with the client's real systems, contracts and consultation duties, and a lawyer settles the discipline and privacy provisions.

**AI may:**

- Turn the client's approved-tool list, IT controls and data classification scheme into the tables in sections 3 and 4.
- Compare the draft with the client's existing IT, privacy and code of conduct policies and list conflicts.
- Draft a short staff FAQ and training slide summary for the lawyer to approve.

**AI must not:**

- Must not list a tool as approved unless the client has confirmed its contract, data settings and retention terms.
- Must not describe monitoring of staff AI use that the client has not notified under surveillance law.
- Must not be given client or staff personal information to 'test' the policy.

**The lawyer checks:**

- Approved tools and their data terms are confirmed by the client's IT and procurement teams.
- Monitoring of AI use is covered by a compliant surveillance notice (14 days' notice and a policy in NSW).
- Consultation duties under any award, enterprise agreement or WHS law have been met before issue.
- The discipline clause is consistent with the client's enterprise agreement and contracts.

## Authorities

- [Privacy Act 1988 (Cth) Sch 1 (Australian Privacy Principles), including APPs 1, 6 and 11](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Privacy Act 1988 (Cth) s 7B(3) (employee records exemption)](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Privacy Act 1988 (Cth) s 6 (definition of sensitive information, including health information)](https://www.legislation.gov.au/C2004A03712/latest/text)
- [Office of the Australian Information Commissioner, Guidance on privacy and the use of commercially available AI products](https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/guidance-on-privacy-and-the-use-of-commercially-available-ai-products)
- [OAIC, APP 1 guidelines: automated decision transparency from 10 December 2026 (APP 1.7-1.9)](https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-guidelines/chapter-1-app-1-open-and-transparent-management-of-personal-information)
- [Workplace Surveillance Act 2005 (NSW) ss 10 and 12](https://legislation.nsw.gov.au/view/html/inforce/current/act-2005-047)
- [Work Health and Safety Act 2011 (NSW) ss 19 and 47](https://legislation.nsw.gov.au/view/html/inforce/current/act-2011-010)
- [Copyright Act 1968 (Cth) s 35(6)](https://www.legislation.gov.au/C1968A00063/latest/text)
- [Fair Work Commission, Guidance Note: Use of generative artificial intelligence in Commission cases (from 20 October 2026)](https://www.fwc.gov.au/documents/resources/guidance-note-use-of-generative-ai-in-commission-cases.pdf)

## Official form

[Official form](https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/guidance-on-privacy-and-the-use-of-commercially-available-ai-products)

## 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/employment-and-workplace-relations/workplace-ai-use-policy 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.*