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Practical AI project guide · By Yes AI

Australia's Guidance for AI Adoption explained

Published 7 min read

The Guidance for AI Adoption is the Australian Government's main governance guidance for organisations using AI. The National AI Centre published it on 21 October 2025 as an updated and simplified version of the guidance in the Voluntary AI Safety Standard. This guide explains the six essential practices, the two versions and the free templates that come with them.

Quick answer

The Guidance for AI Adoption 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, and maintain human control. Foundations suits organisations starting out or using AI in low-risk ways. The implementation guidance suits those building or customising AI or managing higher-risk uses. It is guidance, and existing laws such as the Privacy Act still apply.

Business owner and office manager in a Hobart office reading a printed governance checklist beside a laptop
The six practices start with a named owner, a short policy and a list of the AI already in use.

What is the Guidance for AI Adoption?

It is a set of six essential practices published by the National AI Centre, part of the Department of Industry, Science and Resources, to help Australian organisations use AI safely and responsibly. The practices work at two levels. Some cover the whole organisation, such as having an AI policy and an AI register. Others apply to each individual use, because the same tool can carry different risks depending on the task; the foundations version contrasts drafting marketing emails with assessing job applications. The guidance asks organisations to keep clear records of the actions they take under each practice to support audits, reviews and improvement.

How does it relate to the Voluntary AI Safety Standard?

The Voluntary AI Safety Standard was published on 5 September 2024 and set out 10 voluntary guardrails for organisations across the AI supply chain. The department's page for the standard now states that the Guidance for AI Adoption, published on 21 October 2025, is updated and simplified guidance for industry that evolves the standard. The six practices cover the same ground as the guardrails in fewer, plainer steps. If your policies or supplier questionnaires refer to the 10 guardrails, they remain useful, but map them to the six practices at your next review so your documents use the current framework.

Foundations or implementation guidance: which version fits?

The foundations version is written for teams that are starting to use AI, using it in low-risk ways, new to AI governance or wanting practical guidance in a business context. Each practice has getting-started actions and next steps. The implementation guidance is for teams that build or customise AI systems, use AI in more complex ways, manage higher-risk use cases or need stronger controls. It breaks each practice into numbered requirements, some marked as applying to developers. Most small and medium businesses using commercial tools can start with foundations and use the implementation guidance for specific higher-risk uses.

What are the six essential practices?

Each practice comes with a short explanation of why it matters and two sets of actions: getting started, then next steps as AI use grows. The getting-started actions from the foundations version are summarised below. The guidance says you do not need to do everything at once and should adapt each practice to your size, use cases and risk profile. The AICD's Director's Guide to AI Governance refers to the six practices collectively as AI6, a useful shorthand when reporting to a board.

  • Decide who is accountable: assign a senior leader as the overall AI governance owner and create an AI policy.
  • Understand impacts and plan accordingly: assess who your AI systems may affect and set up channels for people to report problems or challenge decisions.
  • Measure and manage risks: create a risk screening process that flags uses needing extra attention or posing unacceptable risk.
  • Share essential information: keep an AI register and disclose your use of AI, especially where it makes or influences decisions or could be mistaken for a person.
  • Test and monitor: ask suppliers for proof of testing, test before deployment and monitor afterwards.
  • Maintain human control: match oversight to the stakes and build points where people can pause, override, roll back or shut down a system.

Which templates come with the guidance?

The National AI Centre publishes free templates alongside the practices, and they are a sensible starting point before paying anyone to write governance documents. The screening questions have no scores or automatic outcomes; the Centre describes them as a quick first step that comes before a full risk assessment and does not replace it. Download the templates from the National AI Centre site and adapt the wording, roles and approval points to the way your business already works.

  • AI policy guide and template: core principles, expected behaviours, roles, approval points and review guidance.
  • AI register template, in Word and Excel: a table for each AI system, its use, its accountable person and its governance level.
  • AI screening questions: seven questions to answer before you build a business case or commit money; a yes to any of them means the use may need stricter controls.

Is following it compulsory?

The guidance is not legislation, and it does not create a new legal duty on its own. The laws that already apply to your business still apply when AI is involved. The implementation guidance points to several of them: documenting how the Australian Privacy Principles apply to each AI use, meeting Notifiable Data Breaches reporting requirements and extending cyber security practices such as the Essential Eight to AI systems. Boards and larger customers may ask how your organisation lines up against the six practices, so keep a short record of what you have done under each one.

Where should a small business start?

Start with the actions that apply across the whole business, then work through individual uses, beginning with the ones that touch customers, staff or money. A practical order for an organisation mostly using commercial tools is below. Each step leaves a record, which is what the guidance asks for and what a reviewer will look for. If the screening questions flag a use, hold any expansion of it until the risk assessment and oversight steps are done.

  • Name the senior person who owns AI governance.
  • Adopt a short AI use policy based on the template.
  • List current AI use in the register, including features built into software you already pay for.
  • Run each listed use through the screening questions.
  • Set human review and override points for any use that touches customers, staff decisions or money.
  • Ask suppliers of higher-risk tools for evidence of testing, then set a review date.

The six practices: first action, record to keep and a suggested owner

PracticeFirst action (foundations version)Record to keepSuggested owner in a small business
1. Decide who is accountableAssign a senior AI governance owner and adopt an AI policyPolicy with owner and review dateManaging director or general manager
2. Understand impacts and plan accordinglyIdentify who each AI use may affect and set up a way to raise concernsShort impact note for each use; complaints channelOwner of the business process
3. Measure and manage risksScreen each use with the screening questionsCompleted screening answersAI governance owner
4. Share essential informationCreate an AI register and disclose AI useRegister entries and disclosure wordingOperations or office manager
5. Test and monitorAsk suppliers for proof of testing, test before go-live and monitorTest results and monitoring notesProcess owner with IT support
6. Maintain human controlSet oversight to match the stakes and build override pointsWho reviews what, and how to pauseProcess owner

Practical checklist

  • Confirm which version of the guidance you are working from and record why.
  • Name the senior person accountable for AI governance in writing.
  • Check that the AI policy covers approved uses, data rules, approvals, oversight, reporting and a review date.
  • Make sure the AI register lists built-in AI features as well as standalone tools.
  • Run the screening questions on each use and file the answers with its register entry.
  • Confirm who can pause, override or roll back each AI system that affects customers or staff.
  • Map any existing references to the 10 guardrails to the six practices at the next policy review.

Common questions

Does the Guidance for AI Adoption replace the Voluntary AI Safety Standard?

The department describes the guidance as updated and simplified guidance that evolves the standard. The standard's page remains online with its 10 guardrails, but the six essential practices are the current framework the National AI Centre points organisations to. Documents built on the guardrails are still useful; map them to the six practices when you next review them.

Does it apply if we only use ChatGPT or Copilot?

Yes. The foundations version is written for organisations using AI in low-risk ways, including commercial tools. The register, policy and screening actions apply to bought tools and to AI features embedded in software such as HR and customer engagement systems. For a bought tool, testing starts with asking the supplier for proof that it has been properly tested.

How much documentation is enough?

The guidance asks you to adapt each practice to your size, use cases and risk profile, and to keep clear records of the actions you take. For a small business using low-risk tools, that can be a two-page policy, a register spreadsheet and completed screening answers. Higher-risk uses need the risk assessments, test results and monitoring records the implementation guidance describes.

Does following the guidance mean we comply with the Privacy Act?

No. The guidance sits alongside the law. The implementation guidance asks organisations to document how the Australian Privacy Principles apply to each AI use and to meet Notifiable Data Breaches requirements, but compliance depends on what you actually do with personal information. For legal questions, use the OAIC's guidance or a qualified adviser.

Who should own the six practices in a small business?

The foundations version asks for a senior leader as the overall AI governance owner, with enough authority and understanding of AI to oversee all use. In a smaller business that is usually someone in the leadership team who can approve spending and change processes. As use grows, the guidance asks for a named accountable person for each AI system.

Sources and further reading

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