SC-AI-025 · Transparency

Public AI transparency statement and notices

Low effortCovered by ISO 27001: New for AISatisfies 21 obligations in 10 policies

What it means

  • Publish a clear statement about how your company uses AI: main use areas, governance, how customers are protected, how to complain.
  • Keep user-facing terms and notices current, including what is prohibited, what happens on misuse, and which laws apply.
  • Send periodic reminders to users where rules require them.
  • ISO 27001 reuse: None. New for AI, not covered by ISO 27001. Existing privacy notice ownership and review cycles (SOC 2 P1.1) can host it.

Why it matters

  • RBI FREE-AI asks regulated entities to publish AI disclosures in the annual report and website, and to run awareness campaigns on safe AI use and customer rights.
  • The 2026 IT Rules require intermediaries to remind users at least once every three months about consequences of breaches, and SGI tool providers to warn about misuse penalties.
  • MeitY advisories expect terms of service to spell out prohibited content, consequences and applicable penal provisions.
  • The India AI Governance Guidelines encourage voluntary transparency reports.

Checklist

  1. Draft a public "How we use AI" page: use areas, governance owner, human oversight, data use, complaint route, last updated date.
  2. BFSI: add an AI section to the annual report (governance, use areas, consumer protection, complaints handled) and get board sign-off (SC-AI-040 Board reporting and AI risk metrics).
  3. Update terms of service to list prohibited content, consequences (removal, suspension, legal liability, reporting to authorities) and relevant laws.
  4. If you offer generative tools: add a specific misuse warning naming penalties.
  5. Platforms: schedule user reminders at least every three months, in English or a Schedule VIII language the user chose; keep send logs.
  6. Show prohibited-content reminders at registration, login and upload where advisories expect it.
  7. Run a customer awareness item (FAQ, email, branch poster) on safe AI use and how to complain.
  8. Review the statement at least yearly and when a new AI use goes live.

Evidence examples

  • Published AI transparency page with version history.
  • Annual report extract with the AI disclosure section.
  • Terms of service with dated change log.
  • Quarterly reminder campaign records (content, languages, send dates, delivery counts).
  • Awareness campaign material and distribution records.

Common pitfalls

  • A glossy "responsible AI" page with principles but no facts on actual use or complaint routes.
  • Statement goes stale after new AI products launch.
  • Reminder sent once, not every three months.
  • Legal terms only in English for a user base that chose a regional language.

Satisfies

Also relevant to

Standards crosswalk

Clause references only. Check the standard itself for the exact wording.

ISO/IEC 42001

  • 7.4 communication
  • A.8.2 system documentation and information for users
  • A.8.5 information for interested parties

ISO/IEC 27001

No direct equivalent

SOC 2

  • CC2.3
  • P1.1

Key takeaways

  • Publish facts, not slogans: where AI is used, who owns it, how to complain.
  • Platforms in India must remind users about rules every three months.
  • Review the statement when new AI goes live, not just once a year.

Find your gaps

Our free compliance gap assessment shows which of these controls you already run.

Start the gap assessment

Have us build it with you

Our AI Governance service implements controls like this one and produces the evidence auditors expect.

Explore AI Governance