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Record STMT-WFB4846Advisory

Use and outputs

Guidelines Institutional policyOceania · NZin force

This guidance document covers considerations for managing AI system inputs, outputs, and human-in-the-loop decision-making in business settings. It highlights risks such as hallucinations, data privacy concerns with prompts, automation bias, and intellectual property challenges, offering practical tips and scenarios for responsible AI deployment.

Summary and content fields are drawn from the document text and are pending editorial review.

Who issued it

Ministry of Business, Innovation & EmploymentGovernment
Lead issuer
Legal forceAdvisory
Under whose authorityInstitutional policy
Judged fromfull text

Who it governs

CompaniesGeneral publicAI deployers and users

Business owners and operators should read this to understand how to safely and responsibly manage AI inputs, outputs, and human oversight.

Sectors
Cross-sector

What the document contains

What's covered

The document addresses best practices and risks related to generative AI user inputs, managing AI-generated outputs and hallucinations, handling intellectual property and cultural knowledge considerations, and implementing effective human-in-the-loop decision-making structures.

What's missing

The text lacks formal regulatory definitions, binding legal enforcement mechanisms, and specific technical specifications for building AI models.

Key takeaways
  • GenAI tools respond to prompts which can inadvertently expose sensitive or classified information to external parties.
  • Large language models can produce hallucinations, presenting fabricated information as fact with high confidence.
  • Businesses remain fully responsible for their decisions, making robust human review and fact-checking crucial.
  • Human-in-the-loop verification is particularly necessary when AI systems assist in high-risk decisions involving money, health, or the law.
  • Automation bias occurs when humans over-rely on automated systems and accept outputs without critical evaluation.
Outline
· GenAI user inputs
· Tips
· Advice for prompting
· Use of GenAI outputs
· Tips
· Scenario C: ChoiceConsulting
· Human-in-the-loop decision-making
· Tips
· Scenario D: DermaDupe
IssuedNot recorded
Length2,449 words
FormatNot recorded
Scopenational

How it scores

Pending review

Each score is backed by a quote verified against the document text. Editorial review has not yet confirmed them.

Accountability

4/5

Clear responsibility for AI outcomes

Overall, regardless of the supporting technology used, businesses are responsible for their decisions, so robust checking and due diligence, including adequate recordkeeping and documentation, is crucial.

Human-in-the-loop decision-making

screening score · 2026-10-24

Fairness

3/5

Non-discrimination and equitable treatment

Depending on the training data and prompt used, outputs may also reflect prevalent, often biased, out-of-date or unethical viewpoints.

Use of GenAI outputs

screening score · 2026-10-24

Human Dignity

0/5

Respect for the inherent worth of persons

screening score · 2026-10-24

Human Oversight

4/5

Humans remain in control of consequential decisions

If an AI system is helping to make big decisions – like those about money, health, or the law – a person should always be involved. This is called ‘human-in-the-loop’.

Human-in-the-loop decision-making

screening score · 2026-10-24

Privacy

3/5

Protection of personal data and private life

Consider the source of any prompts and data being inputted and whether doing so breaches any rights (privacy, intellectual property, confidentiality).

GenAI user inputs

screening score · 2026-10-24

Transparency

3/5

Openness about how AI systems work and are used

Be transparent about who ‘owns’ any outputs (responses or content) and any conditions on what those outputs may be used for.

Use of GenAI outputs

screening score · 2026-10-24

Enforcement

1/5

Consequences and compliance mechanisms with real force

Otherwise, they risked breaching the Fair Trading Act 1986 for misleading consumers – which could have attracted substantial financial penalties.

Scenario D: DermaDupe

screening score · 2026-10-24

Impact Assessment

3/5

Required assessment of an AI system's risks/impacts before or during use

That’s why it’s important to think carefully before using AI results to make big decisions – especially ones that affect people’s lives.

Use and outputs

screening score · 2026-10-24

Topics

generative_ai human_in_the_loop hallucinations intellectual_property risk_management