Free template
AI use policy template, ready to adapt
A plain English AI use policy template for Australian businesses of 10 to 500 staff, in Word. Approved tools, what information can go into them, rules for staff, decisions about people, the controls behind it and what to do when something goes wrong, with worked examples to replace.

- 10Sections, from approved tools to review
- 4Information levels, from public to sensitive
- 10Plain rules every staff member can follow
- WordEdit it, brand it and share it with your team
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01What is inside
Everything an AI policy needs to cover
Written for the people who will follow it, not for lawyers. Grey example text shows you what good looks like.
Approved AI tools
The tools staff may use for work, the account they sign in with and the highest level of information each one is approved for.
Information levels
Public, internal, confidential and personal information, and which tools each level can go into. When in doubt, the higher level applies.
Rules for everyone
Ten rules in plain English, from checking AI output before it is used to telling people when a meeting note taker is on.
Decisions about people
What to record if AI or automation helps decide about hiring, pay or service, ahead of the Privacy Act change on 10 December 2026.
Controls that back it up
Work accounts, sensitivity labels, data loss prevention and blocking unapproved tools, with a column to record what is in place.
Incidents, new tools and review
What to do when information goes where it should not, a checklist for approving a new tool and a staff acknowledgement page.
02How to use it
From blank template to a policy staff follow
Most businesses have a first version within a week, working through it an hour at a time.
- Step 1
Find what is in use
Ask each team which AI tools they use and what for. Expect more than you think, on phones and free accounts.
- Step 2
Approve the right tools
Pick tools with work accounts the business controls, and set the highest information level for each.
- Step 3
Put controls behind it
Ask your IT provider to set up the controls in section 7, so the policy is enforced by more than goodwill.
- Step 4
Brief staff and sign off
Walk the team through the rules, have everyone sign Appendix B and put the six monthly review in the diary.
03Download
Get the AI use policy template
Fill in the form and the download appears straight away. It is a Word document, so you can edit it, add your logo and share it with the team.
- 01Approved tools list with worked examples
- 02Four information levels and where each can go
- 03Ten rules for staff, plus decisions about people
- 04Controls, incident steps, tool assessment and staff sign off
Send me the template
Takes a minute. The download appears as soon as you send the form.
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Email sales@austintechnology.com.au and we will send the template, or call 1300 787 429.
Your template is ready
Thanks. Download it now and start with section 3, the approved tools.
Download the template04Where policies fail
A policy works when the approved tool is easier
The AI policies we see fail in the same way. They ban the free tools without giving staff a better one, so people keep using ChatGPT on their phones and stop telling anyone. Or the policy says confidential files stay out of AI, but nothing stops a file being pasted into a website.
That is why the template starts with approved tools and ends with controls. If you would like the controls set up for you, see AI security and Microsoft Purview and data loss prevention.
Check these first
- Which AI tools staff use today, and on which accounts
- An approved tool with a work account for every team
- Who can turn on AI note takers and browser extensions
- Files shared with everyone before Copilot is switched on
- Rules that stop tax file numbers and bank details leaving
- Who is told, and when, if information goes into the wrong tool
05Questions
AI use policy questions
What owners and managers ask before they write one. Anything else, call 1300 787 429.
01What is an AI use policy?
A short document that tells staff which AI tools they can use for work, what information can go into them and what to check before they use the output. It also sets out who approves new tools and what to do if something goes wrong.
02Does a small business need an AI use policy?
If staff use AI tools at work, yes, and most do whether or not the business has approved it. Our article on shadow AI explains how common unapproved use is. Clients, insurers and tenders are also starting to ask for one.
03Does SMB1001 require an AI use policy?
The 2026 edition of SMB1001 asks for a written policy on the responsible and secure use of AI from the Gold tier up. This template is a good starting point. See SMB1001 certification for how we take businesses through certification.
04What does the Privacy Act change on 10 December 2026 mean for AI?
From that date, businesses covered by the Privacy Act must explain in their privacy policy when computer programs use personal information to make, or substantially help make, decisions that could significantly affect someone. Section 6 of the template helps you record where that happens.
05Can staff use ChatGPT at work?
That is your decision, and the template lets you record it. The usual answer is yes for public information, and only on a business plan the company controls for anything more. The Office of the Australian Information Commissioner recommends not entering personal information into publicly available AI tools.
06Is the template free?
Yes. Fill in the short form and the download appears straight away. It is a Word document you can edit and brand. Our team may get in touch to see if you have questions, and you are under no obligation.
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06AI security
Want the controls
set up for you?
We find the AI tools already in use, set up the approved ones and put labels and data loss prevention behind your policy, so it holds up when someone is in a hurry.