DataCare Solutions
DataCare Solutions Pte. Ltd.
UEN: 202530943R
Website: www.datacaresolutions.biz
Email: info@datacaresolutions.biz

AI Disclosure Clause Template

Ready-to-Use Privacy Policy Language for AI-Powered Services

This template provides a customisable clause that businesses can insert directly into their existing privacy policies when deploying AI-powered tools or services. It addresses key transparency requirements under Singapore's PDPA and emerging AI governance frameworks, covering disclosure obligations, data subject rights, and human oversight commitments.

How to use: Copy the clause text below into your privacy policy. Replace all bracketed placeholders [like this] with your organisation's specific details. Refer to the Customisation Guide for help adapting each section.

AI Disclosure Clause

1. Use of Artificial Intelligence

[Organisation Name] uses artificial intelligence and machine learning technologies to [describe purpose, e.g., "enhance our services, personalise user experiences, and improve operational efficiency"]. This section explains how AI is used in connection with your personal data.

2. AI Processing and Data Inputs

Our AI systems may process the following categories of personal data as inputs: [list applicable types, e.g., "contact information, usage patterns, transaction history, service preferences, and communications with our support channels"]. This data is used to [describe outputs, e.g., "generate recommendations, assess service eligibility, and provide automated responses to enquiries"].

3. Automated Decision-Making

Certain decisions that may affect you are made with the assistance of automated processing, including [describe, e.g., "service recommendations, eligibility assessments, and risk evaluations"]. Where automated processing produces a decision with significant impact on you, we will inform you at the point of interaction and provide an explanation of the logic involved.

4. Human Oversight

We maintain meaningful human oversight over AI-assisted decisions. [Describe commitment, e.g., "No solely automated decision with significant legal or similarly substantial effect will be made without review by a qualified member of our team. Our staff are trained to evaluate and, where necessary, override AI-generated outputs."]

5. Opt-Out Rights

You have the right to opt out of AI-based processing of your personal data. To exercise this right, contact our Data Protection Officer at [DPO email/contact]. Upon receiving your request, we will [describe process, e.g., "cease AI processing of your data within 30 business days and provide alternative non-automated means of service delivery where reasonably practicable"]. Please note that opting out may affect the availability or functionality of certain features.

Customisation Guide

Adapting Each Section

Section 1 — Purpose: Be specific about which services use AI. Vague language weakens transparency.

Example: "to power our customer support chatbot and to personalise product recommendations on our platform."

Section 2 — Data Inputs: Audit your AI systems and list every category of personal data that is fed into them. Include data collected indirectly (e.g., behavioural analytics).

Section 3 — Automated Decisions: Identify all decisions where AI output directly influences the outcome. If no significant automated decisions are made, state this clearly.

Section 4 — Human Oversight: Describe your actual review process. Specify who reviews AI outputs and under what circumstances escalation occurs.

Section 5 — Opt-Out: Ensure the opt-out mechanism is practical. Provide a clear contact method and set a realistic processing timeline.

When to Use This Clause

Insert this clause into your privacy policy if your organisation uses AI in any of the following scenarios:

AI-Powered Chatbots: Customer service bots that process personal data to generate responses or route enquiries.
Recommendation Engines: Systems that analyse user behaviour or preferences to suggest products, content, or services.
Automated Scoring or Assessments: AI that evaluates applications, assigns risk scores, or determines eligibility for services.
AI Analytics and Profiling: Tools that process personal data to generate insights, segment audiences, or predict behaviour.
Note: Even if your AI system does not make final decisions autonomously, disclosure is considered best practice under Singapore's Model AI Governance Framework and supports your PDPA transparency obligations.

Need Help with AI Compliance?

DataCare Solutions provides comprehensive AI governance services to help your organisation deploy AI responsibly and in full compliance with Singapore's data protection requirements.


DataCare Solutions Pte. Ltd.

Website: www.datacaresolutions.biz
Email: info@datacaresolutions.biz


Our AI governance services include:

AI risk assessments and impact evaluations
Privacy policy drafting and AI clause integration
Automated decision-making compliance reviews
AI governance framework implementation
Staff training on responsible AI use

Document Version: 1.0 | Last Updated: February 2026
Prepared by: DataCare Solutions Pte. Ltd.

© 2026 DataCare Solutions Pte. Ltd. All rights reserved.
This template is for informational purposes only and does not constitute legal advice.