---
title: "AI and automated decisions clause for privacy policies and collection notices"
url: "https://ailawframework.com/precedents/privacy-data-protection-and-cyber/ai-privacy-policy-clause"
type: "precedent"
site: "AI Law Framework"
id: "a25-ai-privacy-policy-clause"
area_id: "A25"
kind: "clause"
ai_level: "yellow"
version: 1
law_stated_as_at: "2026-10-17"
---

# 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,…

Canonical page: https://ailawframework.com/precedents/privacy-data-protection-and-cyber/ai-privacy-policy-clause  
Law stated as at: 2026-10-17

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

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.

## Key facts

- Kind: Clause. Wording to drop into a longer document.
- Practice area: [Privacy, Data Protection & Cyber](https://ailawframework.com/precedents/privacy-data-protection-and-cyber.md)
- Jurisdictions: Australia
- 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 5 authorities it cites, for Australia.

## 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.

## Authorities

- [Privacy Act 1988 (Cth) Sch 1 APP 1.7 to 1.9 (from 10 December 2026)](https://www.legislation.gov.au/C2024A00128/asmade/text)
- [Privacy and Other Legislation Amendment Act 2024 (Cth) s 2 and Sch 1 items 87 to 89](https://www.legislation.gov.au/C2024A00128/asmade/text)
- [Privacy Act 1988 (Cth) Sch 1 APPs 3, 5, 6, 8 and 10](https://www.legislation.gov.au/C2004A03712/latest/text)
- [OAIC, Australian Privacy Principles Guidelines, Chapter 1 (APP 1.7 to 1.9 guidance)](https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-guidelines/chapter-1-app-1-open-and-transparent-management-of-personal-information)
- [OAIC, Guidance on privacy and the use of commercially available AI products (October 2024)](https://www.oaic.gov.au/privacy/privacy-guidance-for-organisations-and-government-agencies/guidance-on-privacy-and-the-use-of-commercially-available-ai-products)

## Official form

[Official form](https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-guidelines/chapter-1-app-1-open-and-transparent-management-of-personal-information)

## 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/privacy-data-protection-and-cyber/ai-privacy-policy-clause 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.*