ARTIFICIAL INTELLIGENCE, REAL COMPLIANCE: AI governance for community housing

Love it or hate it, artificial intelligence is here to stay, and it’s playing an increasingly important role in housing. The Dentons team - Michael Park (Partner) and Antonia Hudson (Senior Associate) - provide us with a legal update on the use of AI for the Australian community housing sector, and AI governance tips for leaders of all organisations. 

Artificial intelligence (AI) is a valuable tool for Community Housing Providers (CHPs) to deliver high-quality, efficient services for the benefit of their tenants. However, it is critical that CHPs understand the complex legal and regulatory risks associated with AI and implement safeguards to protect their tenants, employees and organisation. This will help ensure CHPs use this new technology in a responsible manner aligned with community expectations. 


Potential of AI


AI is already being used by CHPs to increase efficiency, innovation and assist with the digital transformation of key housing services. Harnessing the analytical power of AI can streamline site selection and tenant allocation, provide predictive maintenance and support the management of community housing. 


AI can also enhance a CHP’s ability to engage with individuals based on their specific needs. The processing power of AI has unlocked personalisation at unprecedented levels. The technology can be leveraged to make services accessible to people with disabilities or different ethnic backgrounds; for example, by changing text to pictures or translating into other languages. 


However, with exciting new possibilities also come new challenges and risks from both a legal and operational perspective. 


State of AI regulation 


One challenge posed is understanding how this revolutionary technology interacts with the existing legal landscape in Australia. 


Australia does not have overarching legislation targeted at governing AI. Instead, there is a patchwork of existing legislation that may apply to AI use depending on the type of potential harms that may arise. Privacy laws, anti-discrimination laws, consumer protection laws, work health and safety laws, among others, may all apply to the deployment of AI technology. 


Australia’s voluntary AI Ethics Principles were published in 2019 to assist organisations in strategies for the ethical adoption of AI. Concurrently, the Australian AI regulatory landscape is changing to address the harms that unbridled use and development can cause, while also balancing innovation. In the past year, there has been a number of key developments in regulating the use of AI in high-risk scenarios. 


Firstly, a key change to the Privacy Act 1988 (Cth) enacted last year will require organisations from late 2026 to include information in their privacy policies about decisions made using personal information with AI that could significantly affect an individual’s rights or interests. CHPs using or planning to use personal information in AI systems to make decisions—for example, that determine a person’s eligibility for housing, subsidies or other benefits, allocate resources, triage maintenance and repair work or determine rental payment increases—should take steps now to ensure they’re ready to comply with this obligation when it comes into force next year.


In September 2024, Australia published the Voluntary AI Safety Standards and Proposed Guardrails for the Mandatory Use of AI in High-Risk Settings. As the name suggests, compliance with the Voluntary AI Safety Standard is not mandatory. However, the guardrails do serve as useful guidance to organisations seeking to pursue responsible adoption of AI. 


If the mandatory guardrails (which closely align with the voluntary standard) are made into law, they will regulate high-risk settings. The proposal includes potential indicators of high-risk use cases, including AI systems used to determine access to essential public services. This is likely to include access to community housing.


ACNC guidance on governance duties and AI 


CHPs will ordinarily be registered as charities with the Australian Charities and Not-for-profits Commission. Directors of CHPs may have responsibility for ensuring compliance and managing AI risk arising from their legal duties under ACNC Governance Standard 5 (which is the key statutory obligation that sets out governance duties effectively imposed on ‘responsible persons’ of charities—a charitable CHP’s responsible persons will include its directors/committee members/ governing body members) and under the general law. A breach of these duties can result in the personal liability of a director. 


The ACNC’s Guidance on Charities and Artificial Intelligence (which provides general guidance on charities’ use of AI, that all charitable CHPs should read) points out three duties in ACNC Governance Standard 5 that charitable CHPs should consider when using AI: 


  • The duty to act with reasonable care and diligence, including the duty to ensure privacy and confidentiality, and maintain appropriate cyber security safeguards; 
  • The duty to ensure that a charity’s financial affairs are managed responsibly – which may encourage the effective use of AI, to improve efficiency; and 
  • The duty to act honestly and fairly in the best interests of a charity and to advance its charitable purposes—which may encourage charitable CHPs to use AI in order to further their charitable purposes.


So, what to do? 


An understanding of the AI technology used by the organisation, including its limitations, is key for directors to be able to interrogate proposals and assess whether there is any foreseeable harm to the organisation. The complex nature of AI and rapidly changing technological developments makes this increasingly difficult for directors to achieve. With AI tools becoming more and more accessible, affordable or freely available, even being aware of how members of an organisation are using AI in their work is a challenge. 


Responsible use of AI that does not infringe Australian laws requires an understanding of the risks arising from AI use, the limitations of the technology and taking steps to ensure the responsible implementation of AI tools. 


Risks 


While each AI technology and its particular use will give rise to different risks of harm, there are a few risks that are important to keep in mind when considering an AI project. 


  1. Algorithmic bias
    AI systems have the potential to result in unfair and biased outcomes and, in some cases, unlawful discrimination.

    The risk of bias is of particular relevance to CHPs engaging with marginalised groups. Biased results can occur in a number of ways, including the design of the model and the data it is trained on. If an AI model has been trained on historical data sets, it can reproduce and exacerbate bias inherent in previous decision-making. For example, if historically decisions about housing favoured some groups over others, the AI may learn this pattern and perpetuate this bias. Alternatively, if certain groups are underrepresented in the training data, then the predictive capabilities of technology may be less accurate in relation to those groups compared to others. 

  2. Lack of transparency and explainability 
    AI decision-making is often opaque, and it is not always possible to determine what data was used to create the output or how a decision was made.

    In some cases, it is not possible to determine how an outcome was produced or what reasoning was relied on. This makes it difficult to have confidence in the accuracy or reliability of the results. Individuals who are the subject of AI decisions, which cannot be justified, may not have adequate grounds to challenge the outcome.

  3. Hallucinations
    Although the processing capabilities of AI can seem superhuman, they are not without fault.

    AI tools, particularly large language models, have been known to ‘hallucinate’. An AI tool may produce outputs that are inaccurate or manifestly wrong. Caution should be taken when relying on information provided by AI, particularly in relation to essential services, to ensure users are not misled. 

  4. Privacy and confidentiality
    In some respects, AI tools available on the market are like any other third-party software and should be subjected to the same thorough due diligence to ensure any confidential information is kept secure and personal information is used in accordance with applicable privacy laws.

    However, AI poses a unique challenge to protecting privacy and confidentiality. Unlike traditional systems where data may be returned or destroyed, once an AI model has ingested information, it may not be able to unlearn and control over that information may be permanently lost.

    The legal terms of many popular generative AI tools warn against sharing commercially sensitive or private information because the model learns from the inputs provided. If inputs become part of the knowledge base of a generative AI tool, there is a risk that information can be disclosed in an output as well.

    It is important for CHPs to ensure confidential, personal and sensitive information is not used with AI technology without appropriate contractual and technical protections in place. 


Managing AI risk 


Essential to managing risks arising from AI is an effective governance framework, accountability and leadership. Management and directors play an essential role in fostering a culture of compliance and awareness. 


The importance of good governance is highlighted by the fact that it is the first mandatory guardrail proposed by the Australian Federal Government—organisations should establish, implement and publish an accountability process including governance, internal capability and a strategy for regulatory compliance.


An effective governance framework includes the following core components: 


  1. Policies, practices, processes and strategies
    Boards and leadership should set the organisation’s vision, values, strategies and risk tolerance for AI—and these should be recorded, documented and distributed within the organisation. To support these overarching goals and principles, the organisation must have documents, policies and procedures in place (e.g. privacy policies, AI use policies, etc). 

  2. People, skills, education and culture
    Responsible use of AI relies on engagement, buy-in and responsibility of every person in an organisation. Training and education are essential to ensuring employees, leadership and the board have the requisite knowledge and skills regarding the implementation and use of AI to address any knowledge gaps. 

  3. Roles, responsibilities and governance structures
    Clear roles, defined responsibilities for employees, management and the board of directors, and accountability for key responsibilities are needed to achieve effective oversight. 

  4. Monitoring, reporting and evaluation
    It is essential to ensure policies, procedures and accountability mechanisms are operationalised. It is not enough to have the well-documented plans that live in a drawer gathering dust. Instead, organisations must ensure through monitoring, reporting and evaluation that AI used within their organisation is properly implemented, and adapted for changing laws and risk environments.

5 questions leaders of CHPs can ask themselves now

  1. How is AI currently being used in your organisation? Has the AI technology been vetted prior to implementation? 
  2. Who is accountable for managing and monitoring AI risk, and do they have the requisite skills? What governance structures do you have in place in your organisation? 
  3. Based on your organisation’s use of AI, what are your key AI risks—regulatory or otherwise? 
  4. Are appropriate safeguards for vulnerable groups in place? 
  5. What AI policies and procedures do you have? How are these communicated and enforced?


Wherever your organisation is on its AI journey - whether you are new to these tools or well-versed in their capabilities - managing AI risk requires and an ongoing effort to keep abreast of technological change, an evolving regulatory landscape and ensure your organisation is responsibly using AI. 



Share This Article

Other articles you may like

Harry Smith, new Australasian Housing Institute CEO

Australasian Housing Institute announces new Chief Executive Officer, Harry Smith

April 2, 2025
Harry Smith has recently commenced his role at the ahi as CEO after 26 years in the social services and government sectors across a range of diverse responsibilities. Harry brings a wealth of sector-specific knowledge and experience, supporting our members and our wider community.

Brighter Future Awards nominations now open!!

February 14, 2025
It is with great pleasure that we announce nominations are now open for the ahi: 2025 Brighter Future Awards .

Submission in response to the Draft NSW Homelessness Strategy 2025 - 2035

February 14, 2025
About the Australasian Housing Institute The Australasian Housing Institute (ahi) is a professional body for workers in the social and affordable housing and Specialist Homelessness Service (SHS) sectors across Australia and New Zealand. It has Branch Committees in each state and territory, as well as in New Zealand. The ahi is submitting a response to the Draft NSW Homelessness Strategy (the Strategy), representing the collective feedback of the NSW Branch Committee, with the support of the entire ahi organization. With over 2,000 members across NSW, ahi members work in both government and non-government housing organizations. The ahi has a long history of collaborating with SHS, Specialist Disability Services, and other mainstream services, including health, education, and local councils. For the past 25 years, ahi has been proudly delivering training for industry housing professionals across a wide range of areas, including tenancy management, asset management, and governance. The ahi also hosts masterclasses and networking events to support its members. The ahi provides professional development to the workforce through: Training and knowledge-building on a range of issues relevant to social housing professionals, from induction programs for new workers to advanced and specialized training in areas such as asset management, trauma-informed approaches with applicants and tenants, personal development, and community participation. A mentoring program that pairs experienced professionals with newer or younger members to help them achieve their career aspirations and goals. A certification program for social housing professionals to uphold professional standards and ensure success in their area of expertise. Leading the Annual Brighter Future Awards, which recognize excellence in the social housing industry. Promoting active, engaged, and connected membership through the delivery of topical events, seminars, webinars, masterclasses, and more. As a member-based professional body, the ahi is uniquely positioned to build trust, enhance skills, and foster relationships across both the government and non-government sectors, as well as between organizations. Summary The ahi congratulates the NSW Government on its significant investment of $6.6 billion in the 2024 budget, aimed at tackling the unprecedented housing stress and the rising numbers of individuals experiencing homelessness driven by the ongoing rental crisis in both the private rental and social housing sectors. The Strategy for 2025-2035 is highly commendable, with its three core goals—rare, brief, and non-repeated—standing out as ambitious and impactful objectives aimed at addressing homelessness. These goals are set to bring about significant changes in the social housing system and provide a clear policy framework to guide efforts toward achieving meaningful outcomes over the next decade. The ahi recognizes the importance of this Strategy and the critical role that the social and affordable rental housing system plays in meeting these goals, emphasizing the need for genuine, whole-of-government collaboration in delivering results. This approach involves collaboration across government, the not-for-profit community housing sector, and mainstream services, all supported by SHS’s within a Housing First framework and guided by a clear governance structure. It marks a shift from a deficit-driven perspective to a solution-focused, positive approach. The success of this transformation relies on collective efforts through co-design, co-evaluation, and co-delivery, ensuring the long-term effectiveness of the change. For this paradigm shift to succeed, it will require a skilled, committed, and dedicated workforce, as outlined in Principle 8 (The Workforce is Strong and Capable). Recognizing the need for a sustained, locally connected workforce is crucial to addressing the diverse needs of individuals experiencing homelessness across all three phases of their journey. In its feedback on the Strategy, the ahi emphasizes the importance of focused attention on homelessness and social housing workforce planning, professional development, industry support, and the need for culturally competent workers—both paid and voluntary—who bring diversity, inclusion skills, and lived experience. Finally, the ahi urges that Principle 8, which highlights the strength and capability of the workforce, be prioritized, particularly in supporting First Nations people experiencing housing stress and homelessness, with a long-term vision extending beyond the next 10 years. Detailed response The following is more a detailed response from the ahi to the questions outlined in the consultation paper for the Strategy. SECTION 1: The Guiding Principles of the Strategy 1. What do we need to consider as we implement services and system reform guided by these principles (total 9) over the next 10 years? As we implement services and system reform guided by these principles over the next 10 years, the ahi suggests the following approaches be prioritized: Workforce planning should be a key focus in the first rolling action plan (2025-2027), with an emphasis on forecasting the ongoing skills and competency needs throughout the life of The Strategy. This will ensure the workforce is equipped to meet evolving demands. Increasing the supply of dwellings to address crisis, transition, and permanent housing needs must be matched by a parallel increase in the workforce. This includes expanding both paid employees and volunteers within social housing, community housing organizations, and Specialist Homelessness Services (SHS). A well-supported workforce is essential to ensuring the successful and sustainable delivery of outcomes envisioned by the Strategy. Skilling workers who assist First Nations people experiencing homelessness should be prioritised. This requires a culturally competent workforce at all levels to provide high-quality services and ensure that First Nations people do not experience repeated homelessness. By focusing on cultural competence, we can foster better outcomes and long-term stability for these communities. 2. Which Principle should be prioritized and why? The ahi fully supports all nine Principles, with particular emphasis on Principle 8: Workforce is Strong and Capable, as being foundational. Addressing homelessness is a person-centered solution that requires culturally competent employees and volunteers who can establish strong, supportive networks with wraparound services at the local community level. This is essential to meeting the evolving needs and remains a high priority in the First Action Plan (2025-2027). Ongoing professional development for workers is crucial to ensuring long-term success in meeting the changing social, economic, and environmental needs of those living in quality housing. It is also vital for ensuring tenants not only live well but stay connected to their communities. Supporting the workforce’s safety and wellness is key to maintaining a capable, resilient workforce, which in turn ensures the best possible quality of housing, management, and support for tenants. SECTION 2: Strategy focus areas: 1. To make homelessness rare, what should NSW prioritise for action and why? The ahi believes that adequate funding for SHS’s is essential to ensure they are properly resourced to assist individuals at risk of or in a crisis state of homelessness at the point of need. The ability to identify risks and allocate resources effectively for intake assessments and service coordination is key to early intervention and prevention. A triage system is vital for facilitating positive outcomes, aiming to make homelessness a one-off experience. The ahi also supports dedicated funding for staff training and development in this field, recognizing its importance in preventing homelessness from becoming a long-term issue. Investing in training allows for timely and appropriate interventions, helping to break the cycle of homelessness early on. 2. What opportunities and risks are there for implementing actions under this outcome? Delaying action in assisting individuals experiencing homelessness can lead to a loss of faith and hope in the NSW housing system, pushing them toward the justice system or, in the case of older people or women escaping domestic violence, even premature death. Implementing this outcome presents an opportunity to build a culturally competent, and trauma-informed workforce, a key factor to transforming lives while simultaneously increasing the supply of housing. Supporting a resilient workforce, where high job satisfaction is fostered, creates committed and effective workers who can make a lasting difference. 3. What types (s) would be most useful to measure our impact and why? A key target in the First Action Plan (2025-2027) is to reduce the number of people on the social housing waitlist during the reporting period. This measure will serve as an indicator of success and validate the effectiveness of early intervention policies in preventing homelessness. Additionally, setting targets for the number of employees and volunteers in the social housing and SHS sectors, as well as tracking turnover rates, is essential to assessing the success of building a stronger, more capable workforce. 4. To make homelessness brief, what should NSW Priorities for action & why? Domestic violence, family abuse, and coercive control are major causes of homelessness among women, with the number of homeless women and children increasing according to the latest data. Adequate funding for this vulnerable group is a top priority. Supporting these women has a profound impact on their recovery, resilience, and ability to raise their children, leading to positive generational outcomes in the long term. The rising trend of older women experiencing homelessness for the first time also requires early intervention to prevent premature death. 5. What opportunity and risks are there for implementing actions under this outcome? The continued trend of women dying as a result of domestic violence and family abuse is deeply concerning. In 2024, 14 older women aged 55 and over were killed, a distressing statistic according to the Commissioner for Domestic and Family Violence, Michaela Cronin. These women are at a higher risk of vulnerability, often with no support systems to rely on. Implementing actions under this outcome presents a crucial opportunity to save lives, reduce the number of women experiencing both domestic violence and homelessness, and help them rebuild their lives. 6. What types of target(s) would be useful for measuring our impact and why? Reducing the number of women who die as a result of domestic violence and family abuse during the First Action Plan (2025-2027) is an important metric to track and report, demonstrating the efficacy of The Strategy. Individual success stories are powerful testimonies that show the goals of the Strategy are benefiting both individuals and the housing system. The skills required for employees and volunteers in this area demand dedicated funding and training resources. Implementing a measure to evaluate the outcomes of training courses would be valuable, helping to refine and improve the content and application of these programs. 7. To ensure homelessness is not repeated, what should NSW prioritize for action and why? First Nations people are overrepresented in experiencing homelessness and face significant challenges in breaking the cycle. Priority should be given to this group under the Housing First Principle, supported by skilled and capable staff and volunteers, to empower them and prevent repeat homelessness. Rental tenancy laws in NSW should be reviewed, particularly regarding the cessation of tenancy due to prolonged absences. Cultural customs related to death and bereavement (Sorry Business) should be recognised as acceptable reasons for absences and incorporated into tenancy policies. 8. What opportunities and risks are there in implementing actions under this outcome? The risk of not achieving the goals outlined in the National Agreement on Closing the Gap for the NSW Government is significant if priority is not given to properly housing and supporting First Nations people. There are valuable opportunities in collaborating with Aboriginal leaders through a co-design, co-evaluation, and co-delivery approach. Their collective commitment to improving the lives of Aboriginal and Torres Strait Islander people can lead to positive outcomes in housing, health, education, employment, justice, safety, and inclusion. 9. What types of target(s) would be most useful to measure the impact and why? Increase the number of Aboriginal workers with certified qualifications across various areas of the Aboriginal housing sector. Aboriginal tenants depend on highly qualified and culturally competent workers and volunteers to help build their resilience and prevent repeated homelessness. Regular customer satisfaction surveys should be conducted to measure tenants’ satisfaction levels and identify areas of strength and improvement. Conclusion The ahi supports an ambitious supply growth program throughout the life of the Strategy to address homelessness in NSW. With 63,260 households (based on 2023-2024 data) currently on the waiting list, it is crucial to reduce this number over the next 10 years through the rolling action plans. Successfully delivering the Strategy will require a skilled, trauma-informed, and competent workforce to implement an integrated housing system. While workforce planning is mentioned as one of the nine principles, its lack of detailed planning is concerning. The ahi strongly suggests that the principles of co-design, co-evaluation, and co-delivery be incorporated from the outset in developing the rolling action plans. The ahi thanks the NSW Government for the opportunity to submit feedback and for its ongoing consideration of building a strong and capable workforce that is recognised and supported by a broad range of industries. The value of including people with lived experience and their unique knowledge and skills cannot be overlooked as an essential voice in this transformative process. Contact NSW Branch Committee - Australasian Housing Institute admin@housinginstitute.org www.theahi.com.au (02) 6494 7566 Date submitted: 11/2/25 Submitted to: Homelessness.strategy@homes.nsw.gov.au
More Articles