What is an AI agreement?
An AI agreement is a contract that governs how a business or its staff may use an AI tool, or how an AI-powered product or service is supplied to a customer, covering data, ownership of outputs, and liability.
Business & Startups
AI Agreement Generator
Generate an AI usage or services agreement covering data inputs, output ownership and liability for Australian businesses using or providing AI tools, aligned with the Privacy Act 1988 and current AI guidance.
- Create an AI usage agreement for employees
Generate an internal AI usage agreement (acceptable use policy) for staff at [Company Name] using AI tools such as [AI Tool Name] for work purposes, covering permitted data inputs, confidentiality, and prohibited uses.
- Create an AI services agreement for customers
Generate an AI services agreement between [Provider Name] and [Customer Name] for the supply of an AI-powered [product/service description], covering licence scope, data handling, output ownership, and liability limitations.
- Create an AI vendor / procurement agreement
Generate an agreement between [Business Name] and [AI Vendor Name] for the procurement of AI software or services, covering data protection obligations, service levels, and termination rights.
AI Agreement Generator (Australia)
An AI agreement governs how a business licenses, uses, or provides an artificial intelligence tool or service, covering what data can be input, who owns the outputs, and who is liable if the AI gets something wrong. This free Australian AI agreement generator produces internal AI usage policies for staff and AI services agreements for businesses building or selling AI-powered products, reflecting Australia's current technology-neutral approach of regulating AI through the Privacy Act 1988, the Australian Consumer Law, and the non-binding Guidance for AI Adoption rather than a standalone AI statute. It is designed for Australian startups, SaaS companies, and any business embedding AI into its products or workflows. The generator lets you address data input restrictions, intellectual property in AI-generated outputs, and liability caps for AI errors or hallucinations. Use it to set clear expectations with vendors, customers, or staff about how AI tools may be used and who bears the risk.
Frequently asked questions
Does Australia have a dedicated AI law?
No. As of 2026, Australia regulates AI through existing laws — the Privacy Act 1988, the Australian Consumer Law, and anti-discrimination law — supported by the non-binding Guidance for AI Adoption, rather than a standalone AI statute.
Who owns the output of an AI tool under Australian law?
This depends on the contract terms with the AI provider and general copyright principles; an AI agreement should expressly address ownership of AI-generated outputs to avoid disputes.
What should an AI usage policy for employees cover?
It should set out which AI tools are approved, what data (including personal or confidential information) may or may not be entered, and the consequences of misuse.
How does the Privacy Act 1988 affect AI agreements?
If personal information is input into or generated by an AI tool, the agreement should reflect the business's obligations under the Australian Privacy Principles, including data minimisation and purpose limitation.
Should an AI services agreement include a liability cap?
Yes. Given AI outputs can be inaccurate, providers commonly limit liability for AI-generated errors, while customers should ensure critical decisions are still human-reviewed.
Is Australia planning to introduce AI-specific legislation?
The government announced in July 2026 an intention to legislate Australian Standards for AI, though as of 2026 no dedicated AI statute has been passed.