Clause · Privacy, Data Protection & Cyber

AI and automated decisions clause for privacy policies and collection notices

Modular privacy policy wording on AI: how AI is used, chatbot labelling, the APP 1.7 to 1.9 automated-decision disclosure required from 10 December 2026, AI-inferred information, training and overseas AI providers, plus a short chatbot collection notice.

Kind
Clause. Wording to drop into a longer document.
Where it applies
Australia
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 a client already has an adequate privacy policy and needs to add AI and automated-decision content before 10 December 2026. Build Module C only from a verified inventory of the computer programs the client uses in significant decisions.

How AI may be used

AI may draft the modules from the client's confirmed inventory and compare the result with the OAIC guidance. A lawyer confirms every statement is true and complete.

AI may

  • Turn a client-approved inventory of systems and decisions into the Module C table.
  • Check the draft against APP 1.8(a) to (c) and the OAIC's guidance on level of detail.
  • Check that the chatbot notice covers the APP 5 matters and matches the policy.

AI must not

  • Must not decide that a decision is not "significant" or that a program is not "substantially and directly related" to a decision.
  • Must not choose Module E Alternative A (no training) unless contracts and configuration confirm it.
  • Must not describe safeguards the client does not have.

The lawyer checks

  • Module C covers every decision in scope, grouped meaningfully, with sensitive information called out.
  • The chatbot is labelled as AI in the product itself, not only in the policy.
  • The wording is consistent with collection notices, terms of use and vendor contracts.

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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