What is an AI acceptable use policy?
It is a document that sets out how employees or customers of an Australian business are allowed to use AI tools, including what data can be entered and what outputs cannot be used for.
Data, Privacy & Compliance
AI Acceptable Use Policy
Generate an AI acceptable use policy setting rules for staff or customers using AI tools, aligned with the Privacy Act 1988 and Australia's Guidance for AI Adoption.
- Create an internal AI tool usage policy
Create an AI acceptable use policy for [Company Name] employees covering approved AI tools, permitted use cases, and personal or confidential data that must not be entered into AI systems, consistent with the Privacy Act 1988.
- Create an AI policy for a customer-facing AI product
Create an AI acceptable use policy for customers of [Product Name], an AI-powered product operated by [Company Name], covering prohibited uses, content restrictions, and liability limitations.
- Create an AI content generation policy
Create an AI acceptable use policy for [Company Name] covering the use of AI tools to generate marketing, creative, or written content, including disclosure and human review requirements.
AI Acceptable Use Policy Generator (Australia)
An AI acceptable use policy sets out how employees or customers are allowed to use AI tools, including what data can be entered and what outputs cannot be used for. This free Australian AI acceptable use policy generator produces internal staff policies and customer-facing AI product policies, reflecting Australia's current approach of regulating AI use through the Privacy Act 1988, the Australian Privacy Principles, and the non-binding Guidance for AI Adoption, rather than a standalone AI statute. It is designed for Australian businesses rolling out AI tools internally, and for SaaS and technology companies embedding AI into a customer-facing product. The generator lets you list approved tools, restrict the data that may be entered, require human review of AI output, and set consequences for misuse. Use it to reduce the legal and reputational risk of staff or customers relying on AI tools without clear guardrails.
Frequently asked questions
Why does my Australian business need one?
Without clear rules, employees may enter personal or confidential information into public AI tools in breach of the Australian Privacy Principles, or rely on inaccurate AI output for important decisions, creating legal and reputational risk.
What should an internal AI policy cover in Australia?
It should list approved tools, prohibited data types such as customer personal information or trade secrets, review requirements for AI output, and consequences for misuse.
Is this different from a customer-facing AI policy?
Yes. An internal policy governs staff behaviour. A customer-facing policy governs how customers may use an AI product you offer, including prohibited uses and liability limits.
Should an AI policy mention accuracy and hallucinations?
Yes. It should make clear that AI output can be inaccurate or biased and must be checked before being relied upon, especially for legal, medical, or financial matters.
Does Australia have a dedicated AI law?
No. As of 2026, Australia regulates AI use through existing laws, including the Privacy Act 1988 and the Australian Consumer Law, supported by the non-binding Guidance for AI Adoption, rather than a standalone AI statute.