Do you have to tell callers they are speaking to an AI?
The OAIC's guidance on commercially available AI products says businesses should make sure public-facing AI tools, such as chatbots, are clearly identified as such to users, and should update privacy policies and notices with clear information about their use of AI. The National AI Centre's guidance for businesses lists sharing essential information as one of six practices and says people should know when they are interacting with AI. The OAIC's guidance is written for businesses covered by the Privacy Act, and most small businesses are not. Telling callers still costs one sentence in the greeting and removes any doubt for the caller.
Is it legal to record business phone calls in Australia?
It depends on where the parties are and how the recording is made, because each state and territory has its own surveillance devices law and Commonwealth law also covers telecommunications. Victoria Legal Aid says it is legal in Victoria to record a private conversation you are a party to, provided it is not done through an interception device installed in the phone, and that communicating or publishing the recording without the agreement of everyone involved is against the law. In South Australia, using a listening device to record a private conversation without the consent of all the principal parties is an offence, and that consent can be express or implied.
The South Australian Law Handbook lists a maximum fine of $75,000 for a body corporate. A trade business taking calls from more than one state cannot assume the most permissive rule applies. Announcing the recording at the start of every call gives callers the information they need to agree or ask for an alternative. Whether that is enough in your situation is a question for a lawyer.
What should the greeting say?
Keep it short and put the important facts first. Callers should hear the business name, that they are speaking with an AI assistant, that the call is recorded and transcribed, why it is recorded, and how to reach a person instead. The example below is hypothetical. Adapt it to your business and have it checked before it goes live. Read it aloud first and cut anything a caller with an urgent job would talk over.
Hypothetical example: 'Thanks for calling [business name]. You are speaking with our AI assistant. This call is recorded and transcribed so the team can follow up your job. If you would rather have a person call you back, just say so.'
- The business name in the first sentence.
- A plain statement that an AI assistant is answering.
- That the call is recorded and transcribed, and the purpose.
- How to ask for a callback from a person.
What happens if a caller objects?
Plan the answer before the first objection. The simplest option is to offer a callback from a person, or to invite the caller to send a text with their name and number instead. Check with your provider whether recording can be stopped partway through a call, and what is kept if it is. Note the objection on the enquiry so the person who calls back knows not to send the caller anything automated. Emergency calls need a separate rule: the caller should still receive your pre-approved safety instruction and an escalation, whatever their view of the recording.
Where are recordings and transcripts kept, and who can see them?
Recordings and transcripts hold names, addresses, phone numbers and sometimes details about the people living at a property. The OAIC suggests due diligence before adopting an AI product, including who will have access to personal information entered into it or generated by it. Ask your provider where recordings are stored, how long they are kept, who at the provider can access them, and how you delete one when asked. Inside your business, store transcripts with the job record, limit access to staff who need them, and do not paste them into public AI chat tools.
What should your privacy policy say about AI answering?
The OAIC recommends that businesses update their privacy policies and notifications with clear information about their use of AI. For a trade business using AI call answering, the policy should cover the points below in plain language, and the call greeting should match it. If your business is covered by the Privacy Act, the Australian Privacy Principles set further requirements, and the OAIC's small business page explains who is covered.
- That calls may be answered by an AI assistant.
- That calls are recorded and transcribed, and why.
- Where recordings are stored and for how long.
- Who can access them, including any service provider.
- How a customer can ask for access or deletion.