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Practical Governance for Enterprise AI

Australia AI Ethics Framework

Issued by

Australian Government Department of Industry, Science and Resources (DISR)

liveEffective 2019-11-07AU AI Ethics FrameworkVerified April 2026
Official document →

A voluntary national framework establishing eight core ethical principles to guide the responsible design, development, and deployment of AI systems by Australian organisations.

Applies To

Australian government agencies developing or procuring AI systemsMultinational enterprises operating AI systems in AustraliaTechnology vendors supplying AI solutions to Australian public or private sector customersFinancial services, healthcare, and critical infrastructure operators subject to sector-specific Australian regulationEnterprise procurement and vendor risk management functions conducting Australian supply-chain due diligence

Overview

The Australia AI Ethics Framework was published by the Australian Government in November 2019 following a public consultation process. It provides a principles-based, voluntary approach to ethical AI and is intended to complement existing legal obligations rather than replace them. The framework is grounded in eight AI Ethics Principles that organisations are encouraged to adopt when building or deploying AI systems. It applies across sectors including government, industry, and research, and is designed to be technology-neutral and scalable to different organisational sizes and risk profiles. The framework aligns broadly with international initiatives such as the OECD AI Principles (to which Australia is a signatory) and informs Australia's participation in multilateral AI governance discussions. While voluntary, the framework has been incorporated by reference into government procurement guidance and sector-specific guidance issued by Australian regulators. Enterprises operating in Australia or supplying AI-enabled goods and services to Australian government bodies should treat the framework as a baseline for internal governance documentation and vendor due diligence. The Department of Industry, Science and Resources periodically publishes guidance materials and case studies to assist organisations in implementing the principles in practice.

Key Requirements

  • Human, societal and environmental wellbeing: AI systems must benefit individuals, society, and the environment.
  • Human-centred values: AI systems must respect human rights, diversity, and the autonomy of individuals.
  • Fairness: AI systems must not involve or result in unfair discrimination against individuals or groups.
  • Privacy protection and security: AI systems must respect and uphold privacy rights and data protection, and ensure the security of data.
  • Reliability and safety: AI systems must reliably operate in accordance with their intended purpose and meet safety standards.
  • Transparency and explainability: There must be transparency and responsible disclosure to enable stakeholders to understand AI systems.
  • Contestability: Meaningful mechanisms must exist to challenge the use or outcomes of AI systems.
  • Accountability: Humans and organisations responsible for AI systems must be identifiable and accountable.

What Your Organization Must Do

  • Conduct a gap assessment against all eight AI Ethics Principles for every AI system currently in production or under development, prioritising systems used in or supplied to Australian government contexts, and document findings with the Chief AI Officer or equivalent accountable executive.
  • Embed the eight principles as mandatory evaluation criteria in vendor due diligence questionnaires and AI procurement contracts for any supplier providing AI-enabled goods or services to Australian public or private sector customers, referencing the framework by name to satisfy government procurement alignment requirements.
  • Establish or update contestability mechanisms, such as formal human review pathways and user-facing appeal processes, for any AI system that makes or influences decisions affecting individuals, ensuring the responsible business unit can demonstrate these mechanisms to regulators on request.
  • Assign named accountability owners for each AI system in the inventory, recording these designations in a central AI register maintained by the compliance or risk function and reviewed at least annually.
  • Map existing privacy, security, and fairness controls against the framework principles and identify gaps, then remediate identified shortfalls in alignment with applicable Australian Privacy Act obligations and sector-specific guidance from regulators such as APRA or AHPRA.
  • Monitor DISR guidance publications and case study releases on a quarterly basis, distributing material updates to legal, product, and procurement teams to ensure internal governance documentation reflects current government expectations.

Playbook Guidance

Step-by-step implementation guidance for compliance teams.

Frequently Asked Questions

Is the Australia AI Ethics Framework legally binding on Australian businesses?
No. The framework is voluntary and does not impose legal obligations. However, it has been incorporated by reference into Australian government procurement guidance, meaning suppliers of AI-enabled goods or services to government bodies should treat compliance as a practical requirement for contract eligibility.
Which organisations does the Australia AI Ethics Framework apply to?
The framework is designed for any organisation developing, deploying, or procuring AI in Australia, including government agencies, multinationals operating locally, technology vendors, and regulated sectors such as financial services, healthcare, and critical infrastructure. It is explicitly technology-neutral and scalable to different organisational sizes.
How does the Australia AI Ethics Framework relate to the OECD AI Principles?
The eight principles in the Australian framework are broadly aligned with the OECD AI Principles, to which Australia is a signatory. Organisations already mapping controls to the OECD Principles will find significant overlap, though the Australian framework adds a dedicated contestability principle not always foregrounded in OECD guidance.
What are the penalties for not following the Australia AI Ethics Framework?
There are no direct penalties for non-adoption because the framework is voluntary. However, non-compliance may affect eligibility for Australian government contracts, and gaps identified during regulatory scrutiny under related laws such as the Privacy Act or sector-specific APRA rules could carry separate enforcement consequences.
What is the contestability requirement under the Australia AI Ethics Framework?
Organisations must provide meaningful mechanisms for individuals to challenge AI-driven decisions or outcomes. In practice this means implementing formal human review pathways and user-facing appeal processes for any AI system that makes or influences decisions affecting individuals, and being able to demonstrate these mechanisms to regulators on request.
How does the Australia AI Ethics Framework interact with the Australian Privacy Act?
The framework's privacy protection and security principle is intended to complement, not replace, obligations under the Privacy Act 1988. Organisations should map existing Privacy Act controls against the framework's requirements and remediate gaps, particularly where AI systems process personal data or make automated decisions about individuals.