Insights
Do I need an AI policy for my staff, and is there a free template?
The Australian Government publishes a free AI policy guide and editable Word template through the National AI Centre. The WA Small Business Development Corporation says an AI policy helps ensure safe and appropriate AI use if you employ staff. This article does not state what the law requires. It shows how to adapt the template for daily use.
Where do you get the template?
The template is free on the National AI Centre's AI.gov.au site and on industry.gov.au. It is called the AI policy guide and template, version 1.0, October 2025. It runs 12 pages and downloads as a PDF guide or an editable Word document. It forms part of the Guidance for AI Adoption, published 21 October 2025.
The same guidance includes an AI register template, an AI screening tool and a glossary. The SBDC's AI page links to the template and lists it as a free resource.
What does the template contain?
The template sets out a purpose, a scope, seven policy statements, governance roles, a process for new AI uses, incident handling and a review cycle. Each section has example text and an editing suggestion. The template says to adapt it to your organisation's values, industry standards and legal obligations.
| Section | What the template says |
|---|---|
| Purpose | A high-level statement of your goals for AI, with a version date |
| Scope | Applies to employees, volunteers, contractors and board members. Covers generative AI tools and chatbots. Excludes standard spreadsheet formulas, if-then macros and traditional dashboards |
| Seven policy statements | Ethical and human-centred use. Clear accountability. Risk and impact assessment. Quality, reliability and security. Fairness and inclusion. Transparency and contestability. Human oversight and control |
| Roles | AI policy owner, policy approvers, compliance monitor, governance committee, AI system owner, and all employees. The template notes that in smaller organisations one person may hold multiple roles |
| New AI use cases | Screen each proposed use to decide the level of risk assessment and approval |
| Incident management | Report AI breaches and incidents to the system owner or compliance monitor. Keep the ability to take a system offline and a documented manual fallback |
| Policy review | Review annually with formal approval. Review sooner after a significant incident, new impactful technology or changes to laws, regulations or standards |
How do you adapt it for daily operations?
Five decisions turn the template into something staff follow. Write each one down in plain words. The template supplies structure for the first, third, fourth and fifth. The second needs text you write yourself.
1. Approved tools. The template says all approved AI systems are recorded in an AI register. Create the register first. For each tool, record the name, the account type (free or paid), who owns it, the date approved and what it is approved for. The National AI Centre provides a register template.
2. What data staff may paste in. The template says privacy and security safeguards apply to AI systems that handle sensitive data. It does not list what staff may enter. Write your own short list for your business, for example client names, financial figures, health information and passwords. The SBDC advises you to read each tool's terms and to know where your information is stored, processed or shared before you enter it.
3. Who signs off. Name the policy owner, the person who approves new tools and the person who approves the policy. In a business of one to ten staff, these can be the same person. The template allows this.
4. Review dates. Put the next review date on the policy. The template sets annual review with formal approval, and ad hoc review after incidents, new technology or legal change.
5. Checking outputs. The template says users of AI systems are responsible for overseeing the quality of outputs. The National AI Centre's SME survey found about half of AI-using SMEs check outputs before they affect customers. Write the rule: a named person reviews every AI output that reaches a client.
What do staff need beyond the policy?
A policy changes behaviour when staff understand it. The template states that employees complete required AI training and report AI-related incidents. See how to get your team to use AI for a rollout sequence. See what to ask your broker about AI for the insurance side.
What this article does not do
This article gives no legal advice and no compliance guarantee. The template tells you to adapt it to your legal obligations. The SBDC advisory service is free on 133 140 and can point you to the right next step. A lawyer can advise on your specific obligations.
What to do next
Download the template, create your AI register and write the five decisions above. The Clockwise Intensive is one focused hour with Megan, one-on-one on Google Meet, on where AI fits in your business and which process to hand over first. It costs $550 AUD.
Book the Clockwise Intensive →
Frequently asked questions
Is the AI policy template free?
Yes. The National AI Centre publishes the AI policy guide and template, version 1.0, October 2025, at no charge. It is available as a PDF guide and an editable Word template on AI.gov.au and industry.gov.au. An AI register template and an AI screening tool sit alongside it.
How long should a small business AI policy be?
The government template runs 12 pages and includes guidance text. The template states that smaller organisations may assign several roles to one person. Keep your own version as short as covers the five decisions in this article, and review it on the date you set.
About the author
Megan Hogan is the founder of Clockwise and works as a fractional COO inside small to medium businesses. She spent seven years at Optus and has led customer experience transformation and AI-enabled contact centre implementation.
Editorial standards
Program and guidance details come from government pages and publications. Each fact carries the date it was checked. This article is general information. It gives no legal advice and no compliance guarantee.
Sources and dates
All checked 29 October 2026.
- Department of Industry, Science and Resources and National AI Centre, AI policy guide and template, v1.0, October 2025 (PDF). https://www.industry.gov.au/sites/default/files/2025-10/ai_policy_guide_and_template.pdf
- Department of Industry, Science and Resources, AI policy guide and template (web page). https://www.industry.gov.au/publications/guidance-for-ai-adoption/ai-policy-guide-and-template
- Department of Industry, Science and Resources, Guidance for AI Adoption. Published 21 October 2025. https://industry.gov.au/publications/guidance-for-ai-adoption
- SBDC, Artificial intelligence. Copyright 2026. https://www.smallbusiness.wa.gov.au/digital/artificial-intelligence
- National AI Centre, AI adoption insights December 2025 to February 2026. 7 May 2026. https://www.ai.gov.au/news-and-insights/blog/ai-adoption-insights-december-2025-february-2026