Free tool
AI policy template generator for Australian organisations
Create an AI acceptable use policy for your staff in a few minutes. It follows the National AI Centre's AI policy template and six essential practices, with privacy rules based on OAIC guidance and extra clauses for your sector.
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Your AI policy
Generated with the free AusGPT tool at https://ausgpt.com.au/tools/ai-policy-generator. Review and adapt before use.
General information only, not legal advice. Review the output with your own advisers before you rely on it.
Use this free AI policy template to create an AI acceptable use policy for your employees, contractors and volunteers. It's built for Australian organisations: the structure follows the AI policy guide and template published by the National AI Centre, and the privacy rules follow guidance from the Office of the Australian Information Commissioner (OAIC). Answer the questions above and you get a complete, numbered policy you can copy or download as Markdown or Word, then edit to fit how you work.
What this AI policy template covers
The generated policy has these sections:
- Purpose and scope, including a definition of an AI system taken from the National AI Centre template, so staff know which tools are covered (AI features built into other software count too).
- Principles that map to the six essential practices in the Guidance for AI Adoption.
- Approved AI tools, with a process for approving new tools and uses, screened as normal risk, elevated risk or not permitted.
- Information handling, with a table showing what may go into your approved tools and what may go into any other AI tool.
- Acceptable and prohibited uses, human oversight and transparency.
- Accountability and roles, incidents, training and review.
- Sector requirements for NDIS providers, health practices, law firms, schools and RTOs, not-for-profits and government bodies.
Built on the Guidance for AI Adoption
The Australian Government's Guidance for AI Adoption, published by the National AI Centre on ai.gov.au, sets out six essential practices for responsible AI use:
- Decide who is accountable
- Understand impacts and plan accordingly
- Measure and manage risks
- Share essential information
- Test and monitor
- Maintain human control
The foundations version of the guidance tells organisations starting out with AI to assign a senior leader as the overall AI governance owner and to create an AI policy. The National AI Centre's template covers purpose, scope, policy statements, roles and responsibilities, screening of new AI use cases, incident management and review. Before you publish, ai.gov.au suggests checking that your policy clearly sets out what AI can and can't be used for, who approves higher-risk uses, what data staff can put into tools, when staff need to oversee AI use, how to report issues or misuse, and when the policy will be reviewed. The generator asks you a question for each of these.
Privacy rules in an AI policy for employees
The OAIC's guidance on privacy and the use of commercially available AI products shapes the information handling section:
- Privacy obligations apply to any personal information put into an AI system, and to AI output that contains personal information.
- The OAIC recommends that organisations do not enter personal information, and particularly sensitive information, into publicly available generative AI tools.
- Under APP 6, personal information should generally only be used or disclosed for the purpose it was collected for, unless an exception applies, such as consent or a related purpose the person would reasonably expect.
- Organisations should update their privacy policies and notices to explain their AI use, and make clear when people are dealing with an AI tool such as a chatbot.
- Checking an AI product before you use it shouldn't be a one-off. The OAIC warns against a "set and forget" approach.
From 10 December 2026, APP entities that use personal information in computer programs that make, or substantially and directly help make, decisions that could significantly affect people must also describe those decisions in their privacy policy (APP 1.7). Use the automated decision-making privacy policy generator to draft that wording.
Sector-specific clauses
| Sector | What the policy adds | Based on |
|---|---|---|
| NDIS provider | Participant consent for how information is used, accurate and timely records, reportable incidents | NDIS Practice Standards (core module); NDIS (Incident Management and Reportable Incidents) Rules 2018 |
| Health or allied health | Practitioner stays responsible, informed consent for AI scribes, checking AI-drafted notes, indemnity cover | Ahpra guidance on using AI in healthcare |
| Law firm | Confidentiality and privilege, suppressed and subpoenaed material, court practice notes, citation checks | NSW Supreme Court Practice Note SC Gen 23; Federal Court Practice Note GPN-AI |
| School or RTO | Student data, AI rules in every assessment task, academic integrity, human judgement on results | Australian Framework for Generative AI in Schools; ASQA's Principles for the Responsible Use of AI in VET |
| Not-for-profit | Privacy principles applied whether or not the Privacy Act covers you, vulnerable clients, donor data | OAIC guidance on Privacy Act coverage |
| Local or state government | State privacy laws, whole-of-government AI frameworks, records and FOI | OAIC; NSW Circular DCS-2026-02 |
Rules change, so check each source before you adopt the policy. For example, the Federal Court's generative AI practice note was issued in April 2026, and NSW replaced its AI circular in July 2026.
How to finish and roll out your policy
- Replace every bracketed placeholder and check that each clause matches how you actually work.
- Check each approved tool: where it stores and processes data, whether your inputs are used to train AI models, and who can access them.
- Set up an AI register. The National AI Centre also publishes an AI register template.
- Have the policy approved by your leadership or board, train staff, and only then give them access.
- Review it on schedule, and sooner after an incident or a change in the law.
If you're choosing a tool to list as approved, AusGPT runs Anthropic's Claude models through Amazon Bedrock's Australian cross-region inference, which routes requests only between AWS Sydney and Melbourne. Conversations and documents are stored in Australia and aren't used to train AI models. See how we keep data in Australia.
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AusGPT gives your team Claude AI with conversations and documents stored and processed in Australia. $29 per user per month, with a free trial.
Sources
- National AI Centre: Create an AI policy (AI policy guide and template)
- National AI Centre: Guidance for AI adoption: foundations
- National AI Centre: Guidance for AI adoption: implementation guidance
- OAIC: Guidance on privacy and the use of commercially available AI products
- OAIC: Small business (Privacy Act coverage)
- NDIS Quality and Safeguards Commission: NDIS Practice Standards, core module (provider governance and operational management)
- Ahpra: Meeting your professional obligations when using Artificial Intelligence in healthcare
- Supreme Court of NSW: Practice Note SC Gen 23, Use of Generative Artificial Intelligence
- Federal Court of Australia: Use of Generative Artificial Intelligence Practice Note (GPN-AI)
- Department of Education: Australian Framework for Generative AI in Schools
- ASQA: Responsible use of AI in VET (Principles for the Responsible Use of AI in VET)
- OAIC: State and territory privacy legislation
- NSW Government: Circular DCS-2026-02, Use of artificial intelligence by NSW Government agencies
Frequently asked questions
- Is there an official AI policy template in Australia?
- Yes. The National AI Centre publishes an AI policy guide and template on ai.gov.au as part of the Australian Government's Guidance for AI Adoption. It covers purpose, scope, policy statements, roles and responsibilities, screening of new AI use cases, incident management and policy review. This generator follows that structure and adds the information handling rules and sector clauses most organisations need.
- Do we have to have an AI policy?
- The Guidance for AI Adoption is guidance, not law, but it says organisations that use AI should develop and maintain an AI policy. Existing laws still apply when staff use AI. For example, the OAIC says privacy obligations apply to any personal information put into an AI system. A written policy is how you show staff, clients and auditors how you meet those obligations.
- What should an AI acceptable use policy for employees include?
- At a minimum, ai.gov.au suggests your policy should make clear what AI can and can't be used for, who approves higher-risk uses, what data staff can put into AI tools, when staff need to oversee AI use, how to report issues or misuse, and when the policy will be reviewed. The generator asks you about each of these.
- Can staff put personal or client information into AI tools?
- The OAIC recommends that organisations do not enter personal information, and particularly sensitive information, into publicly available generative AI tools. If you allow personal or client information in an AI tool at all, approve a specific tool after checking how it handles data, limit what goes in, and make sure the use fits the purpose the information was collected for.
- How often should we review our AI policy?
- The National AI Centre's template suggests reviewing the policy annually, with an earlier review after a significant AI-related incident, when new and impactful AI technology emerges, or when relevant laws, regulations or industry standards change. You can choose 6, 12 or 24 months in the generator.
- Is anything I type into this generator sent to AusGPT?
- No. The generator runs entirely in your browser. Your answers are saved only in this browser so you can come back to them, and Start again clears them.
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