How Your Real Estate Business Should Use AI — And Stay Privacy Compliant

O*NO! Using AI in Your Real Estate Agency? Make Sure You're Privacy Compliant.

If you run a business using AI, you already know how powerful these tools can be for streamlining tasks and making decisions faster. But with that power comes responsibility—especially when it comes to handling personal information. The Office of the Australian Information Commissioner (OAIC) has recently released guidelines to help businesses navigate AI use while keeping privacy front and center.

In this blog post, we’ll unpack what these guidelines mean for your business, highlight key privacy considerations when using AI, and share practical tips to keep your operations compliant and your customers’ data safe.

The Core Message? AI Is Not Privacy-Free

Despite the hype around AI as a revolutionary tool, there’s a critical point the OAIC wants every business to understand: AI is not a free pass when it comes to privacy.

If your AI system processes any personal information — whether it’s collecting, storing, or generating it — your business must comply with privacy laws and take responsibility for how that data is handled. The OAIC’s guidelines highlight several key areas to focus on:

1. Personal Info In = Privacy Obligations Out

Any personal information fed into your AI system triggers your privacy obligations. This means your business needs to actively manage risks around privacy and security.

Ask yourself these crucial questions:

• Is the AI tool suitable for the purpose you’re using it for?

• Have you embedded human oversight to catch errors or bias?

• What privacy and security risks does the AI system introduce?

• Who has access to the personal information your AI collects or produces?

• This kind of risk assessment is not just good practice — it’s expected by the regulator.

2. Your Privacy Policy Needs an AI Refresh

Transparency isn’t optional when it comes to AI. Your customers and users have a right to know if they’re interacting with an AI system, such as a chatbot or automated assistant.

Your privacy policy should be updated to clearly disclose:

• That you use AI-powered systems, including the types of tools you deploy

• How personal information is handled within these AI systems

• Your approach to transparency and accountability in AI use

Being upfront builds trust with your customers and protects your business from complaints or investigations.

3. AI-Generated Personal Information Must Follow the Rules

If your AI system generates personal information — for example, by creating profiles or predictive insights — it must comply with APP 3 of the Privacy Act, which requires personal data to be handled in a lawful, fair, and reasonably necessary way.

You also need to have a plan for when AI makes mistakes or generates inaccurate information. Errors can cause harm and legal risk, so human review and correction mechanisms are essential.

4. Stick to the Original Purpose of Collection 

Under APP 6, personal information must only be used for the purpose for which it was originally collected — unless the person has consented or would reasonably expect otherwise.

This raises a red flag for businesses feeding existing data into AI tools. Are you using that data in new ways your customers didn’t agree to? If so, you may need to get fresh consent or reconsider your approach to avoid breaching privacy laws.

5. Keep Personal Info Out of Public AI Tools 

This rule can’t be stressed enough: Never input personal information into public AI tools like ChatGPT, Microsoft Copilot, or any generative AI platform that processes data outside your control. 

These tools may store, share, or use your data in ways that could violate privacy laws and expose your business to security risks. Always opt for AI solutions with strong privacy and security guarantees or consider on-premises AI options. 

Key Takeaways

• AI = Privacy Responsibilities: If your AI system collects, generates, or processes personal information, it triggers obligations under the Privacy Act.

• Update Your Privacy Policy: Clearly disclose your use of AI, especially if users interact with it (like through chatbots or automated forms).

• Don’t Trust AI Blindly: Any AI-generated personal data must still meet legal standards of fairness, lawfulness, and necessity.

• Stick to Purpose: You can’t use personal data for new AI purposes unless your customers have consented or would reasonably expect it.

• Avoid Public AI Tools for Personal Info: Never feed private or sensitive data into platforms like ChatGPT or Copilot—these could pose major privacy risks.

Using AI in your business? Make sure your privacy practices are keeping up. Review your current policies, flag any areas where AI might be handling personal information, and consider how clearly that’s explained to your clients.

Next Steps

We’ve helped agency owners stay compliant while still making the most of automation—and we’re here if you need us. Book your free 10-minute chat and let’s make sure your AI setup doesn’t cause legal headaches down the line.

Frequently Asked Questions (FAQ)

• Do I need to tell clients if I use AI in my business?

  Yes—especially if the AI interacts with clients directly (e.g. via chatbots) or processes their personal information. Transparency is key under the Privacy Act. 

• Can I use AI tools like ChatGPT to write client emails or handle enquiries?

  You can—but don’t feed them sensitive or identifying details. Public AI tools aren’t private or secure, and you could breach privacy laws if you’re not careful. 

• My AI system creates summaries based on client data. Is that personal information?

  If the summaries relate to or identify individuals, then yes. That means your usual privacy obligations still apply, even if the output is AI-generated.

• What should I include in my Privacy Policy if I use AI?

  Be specific. Mention the type of AI used, how it interacts with or uses personal data, and what safeguards you’ve put in place. Avoid vague statements—clarity builds trust and reduces risk. 

Luke Shumack – Senior Lawyer, O*NO Legal

Luke Shumack is a Senior Lawyer at O*NO Legal with a Bachelor of Laws and a sharp focus on helping agencies and business owners stay compliant while scaling with confidence. Since starting his legal career in 2021, Luke has worked closely with real estate agencies, startups, and established businesses on privacy compliance, employment law, contractor agreements, mergers and acquisitions, and corporate governance. Known for his tech-savvy approach and love of efficiency, Luke blends legal precision with practical business strategy—making the complex simple for clients who want to move fast without risk.

Boring legal stuff: This article is general information only and cannot be regarded as legal, financial or accounting advice as it does not take into account your personal circumstances. For tailored advice, please contact us. PS - congratulations if you have read this far, you must love legal disclaimers or are a sucker for punishment.