Why Your Agency Needs AI Governance

Even smart AI can make mistakes or break the law if no-one is watching. A simple, plain-English governance checklist helps you:

• Protect client data and stop privacy breaches

• Follow the Privacy Act 1988 and new OAIC guidance on AI privacy (OAIC)

• Lower legal and brand risk by showing regulators you are in control

• Build trust with sellers, buyers and your own team

Governance Framework Snapshot

Roles and Responsibilities

End-to-End Workflow

1. Idea – Team member submits an AI Idea Form.

2. Triage – Governance Lead applies the “AI Risk Screener” (see checklist).

3. Approval – If medium or high risk, Leadership signs off.

4. Build / Buy – IT Manager designs or selects tool, follows Vendor Vetting steps.

5. Pilot – Small test with dummy or masked data, measure accuracy.

6. Go-Live – Privacy Officer signs Data Checklist, Governance Lead records Approval ID.

7. Monitor – Automated logs plus monthly spot checks.

8. Review – Quarterly “AI Health Check” meeting; update policy if needed.

Core Checklists

1. AI Risk Screener (tick before project starts)

• ☐ Does the tool handle personal data?

• ☐ Does it give advice that could influence pricing or contracts?

• ☐ Could a wrong answer cause legal or financial harm?

• ☐ Is any output disclosed to clients?

• ☐ Are you fine-tuning or training on customer data?

Action: If you tick one or more, the project is Medium Risk – needs formal approval.

2. Data Privacy & Security

• ☐ Data mapping done and stored location recorded

• ☐ Only the minimum data fields are used (data minimisation)

• ☐ Data encrypted in transit and at rest

• ☐ Access is role-based and logged

• ☐ Retention schedule set and matches agency policy

3. Model Lifecycle

• ☐ Training data reviewed for bias

• ☐ Validation accuracy ≥ 95 % on local property examples

• ☐ Human review process in place for critical outputs

• ☐ Retraining calendar set (e.g. every 6 months)

• ☐ Model version number recorded in Change Log

4. Third-Party Vendor Vetting

• ☐ Vendor shares security and privacy certificates (ISO 27001 or equal)

• ☐ Contract includes breach-notification duty within 72 hours

• ☐ Clear clause on ownership of outputs and data

• ☐ Local data-centre or approved cross-border transfer safeguards

• ☐ Exit plan and data-deletion steps agreed

5. Ethical Use & Compliance

• ☐ Tool can explain its answers in plain language

• ☐ No discrimination on protected attributes (gender, race, etc.)

• ☐ Marketing content follows truth-in-advertising rules

• ☐ Disclosure label used for AI-generated images or copy

• ☐ Complaints channel listed in client-facing materials

6. Training & Awareness

• ☐ New-starter AI induction (15 min) completed

• ☐ Annual refresher session booked in HR calendar

• ☐ Quick-read AI Do’s & Don’ts poster in office and intranet

• ☐ Incident-report form link shared with all staff

Continuous Monitoring & Improvement Workflow

1. Auto-Logs – IT Manager exports weekly log summary.

2. Spot Checks – Governance Lead randomly audits 10 AI outputs per month.

3. Incident Handling – Any breach triggers 24-hour response plan; Governance Lead reports to Privacy Officer.

4. Metrics Dashboard – Track accuracy, complaints, time saved.

5. Quarterly Review – Adjust risk scores, update checklists, retire low-value tools.

Documentation & Audit Trail

• AI Idea Forms, Risk Screener, Approval IDs, Vendor contracts and Privacy Impact Assessments (PIAs) stored in a shared “AI-Governance” folder.

• Keep each document for 7 years to match record-keeping rules.

• Use version numbers (v1.0, v1.1…) and lock PDF copies after sign-off.

Quick-Start 90-Day Roadmap

• Week 1–2: Draft AI Policy and Idea Form.

• Week 3–4: Appoint Governance Lead and Privacy Officer.

• Week 5–6: Run a “tool census” – list every AI plug-in, add-on or app in use.

• Week 7–9: Apply Vendor Vetting; shut down any “shadow-AI”.

• Week 10–12: Train staff, post Do’s & Don’ts poster.

• Week 13: First Quarterly AI Health Check – refine checklists.

Helpful Standards & Resources

• ISO/IEC 42001:2023 – Artificial Intelligence Management System (ISO)

• ISO/IEC 23894:2023 – Guidance on AI Risk Management (ISO)

• NIST AI Risk Management Framework 1.0 (NIST)

• Australian Digital Government AI Policy v1.1 (2024) (digital.gov.au)

• OAIC Guidance on Privacy and AI (2024) (OAIC)

Use this checklist, adapt it to your size, and review it every quarter to keep your AI tools safe, compliant and valuable.

Author – Ken Hobson.