AI Clarity Statement

1.Purpose of This Statement

Artificial intelligence is becoming an increasingly important part of modern workplace operations. PaperThread uses AI technologies to help organisations operate PeopleOps processes more efficiently, connect workplace information, automate repetitive activities and support operational decision-making.

Because AI capabilities can influence workflows and operational activities, PaperThread believes transparency is essential. This AI Clarity Statement explains how PaperThread AI operates, what PaperThread AI can and cannot do, and where responsibility remains with PaperThread and its customers.

This statement forms part of PaperThread's broader trust framework and should be read together with the PaperThread Terms of Service, Privacy Policy and Trust Centre.

2.What PaperThread Is

PaperThread is an AI-powered PeopleOps operating layer designed to help organisations connect workplace systems, understand operational context and automate configured workflows.

PaperThread brings together information, workflows and operational processes into a connected environment where customers can retrieve information, prepare actions, coordinate approvals and automate defined activities.

PaperThread is designed to assist organisations and their teams. It is not an autonomous organisation, an employment decision-maker or a replacement for human judgement.

3.What PaperThread AI Does

4.Customer-Controlled AI Authority

A fundamental principle of PaperThread is that customers control the authority granted to AI-enabled workflows.

PaperThread does not independently determine what authority it has, what information it can access or what actions it can perform.

Customers define AI authority through:

• permissions and user roles
• connected systems and integrations
• workflow configuration
• approval requirements
• automation settings

5.Enabling AI Automation Is a Customer Decision

When a customer enables AI-powered automation, the customer is making an operational decision to delegate specific activities to PaperThread within a defined scope.

The customer decides:

• whether automation is appropriate
• what activities may be automated
• what information PaperThread can access
• what approvals are required
• what level of human oversight is necessary

PaperThread operates only within the authority provided by the customer.

6.The Customer Remains the Final Authority

Customers remain responsible for decisions made within their organisation.

This includes responsibility for:

• HR decisions
• employment decisions
• payroll decisions
• compliance decisions
• workflow design
• approval processes
• business rules

PaperThread provides technology that supports operational activity. Customers remain responsible for determining how that technology is used.

7.Human Oversight and Accountability

AI is designed to support human capability rather than remove human accountability.

Customers should determine appropriate oversight based on factors including:

• the sensitivity of the workflow
• the impact of the action
• applicable legal requirements
• internal governance requirements
• the level of automation enabled

Customers remain responsible for reviewing outputs and approving actions where appropriate.

8.What PaperThread Does Not Do

9.AI Outputs and Limitations

Customers acknowledge that AI systems may produce outputs that are incomplete, inaccurate, unexpected or require additional context.

AI Outputs may require human review before they are relied upon or used to support operational actions.

PaperThread does not guarantee that AI Outputs will always be complete, accurate, suitable or appropriate for every situation.

10.AI and Customer Data

Customer Data remains controlled by customers and is processed according to customer instructions, permissions and applicable agreements.

PaperThread does not use Customer Data to train general-purpose AI models.

AI functionality is designed to provide requested services while maintaining privacy, security and confidentiality obligations.

11.AI and Privacy Responsibilities

For Customer Workspace Data, customers generally act as controllers because they determine why and how information is processed.

PaperThread acts as processor where it processes Customer Personal Data on behalf of customers.

Customers remain responsible for lawful processing, employee notices, permissions, workflow configuration and decisions made using AI Outputs.

12.Examples of PaperThread AI Usage

13.Responsible AI Principles

14.Relationship With PaperThread Legal Documents

This AI Clarity Statement works together with PaperThread's other legal and trust documents.

The Terms of Service define customer responsibilities, AI limitations, liability allocation and use of the Services.

The Privacy Policy defines data processing roles, privacy rights and AI-related data processing.

The Trust Centre explains security, governance and operational practices.

15.Final Statement

PaperThread believes AI should increase operational capability while preserving human accountability.

AI is powerful, but authority comes from people.

Customers decide what PaperThread can access, what PaperThread can do, when AI can act and when human approval is required.

PaperThread operates within the authority provided by customers.