Client AI Disclosure & Terms of Engagement

This document has been updated to reflect incoming obligations under the Australian Privacy Act 1988 (Cth), including new automated decision-making transparency requirements effective December 2026. Rhodes & Co. has adopted these standards now.

1. How RecruitIQ Uses Artificial Intelligence

RecruitIQ uses AI to assist in candidate assessment and pipeline management. Specifically, AI is used to:

• Assess professional profiles against role requirements and generate a compatibility score
• Extract and organise information from CVs and resumes
• Identify skills alignment, experience fit, cultural indicators and availability match
• Generate written summaries of professional profiles for director review
• Support communication workflows ensuring professionals are kept informed

The Two-Layer Scoring Framework. Layer One — The Rhodes & Co. Standard — is a universal set of criteria applied consistently to every professional regardless of role. Transferable skills, career trajectory, professional development, soft skills, real-world experience, and indicators of long-term cultural fit. This layer is fixed and does not change between mandates. Layer Two — The Client Brief — is role-specific criteria drawn directly from the brief you provide — technical requirements, sector experience, cultural fit indicators, team dynamics, seniority level, salary alignment, and the specific context of the appointment. This layer is configured at the start of each mandate.

Score weighting between the two layers is reviewed and confirmed by the responsible director at the briefing stage. You are entitled to request the weighting applied to your specific mandate at any time.

2. What AI Scores Mean — and What They Do Not

AI scores are directional tools. They are not decisions.

• A high score does not guarantee a successful placement. Scores reflect data available at the time of assessment and cannot account for factors that emerge through conversation, interview or reference.
• A lower score does not disqualify a professional. Our directors regularly override AI assessments where their professional judgement identifies qualities the data does not fully capture.
• Scores are role-specific. A professional's score for one position does not reflect their suitability for another.
• AI assessments are based on the information provided. The depth of scoring is directly related to the completeness of the professional's profile and the quality of your brief.

3. Human Review — Our Commitment to You

Every professional presented to you in a shortlist has been personally reviewed and endorsed by a Rhodes & Co. director. Our directors use AI scores as a structured starting point — before applying their own market knowledge, sector experience, and professional judgement to determine who we recommend.

No raw AI output is ever sent to a client. The director's written endorsement in the shortlist presentation is the primary recommendation. The AI score is supporting context only.

4. Your Rights as a Client

• Request an explanation. You may request an explanation of how the AI scoring was configured for your specific mandate — including the weighting between Layer One and Layer Two criteria.
• Request a human-only review. You may request a human-only review of any shortlist where you believe the AI assessment has produced an unexpected or unexplained result.
• Be informed of parameter changes. You have the right to be informed if the AI scoring parameters for your mandate are adjusted during the search, and the reason for any adjustment.
• Request criteria adjustments. You may request that specific criteria be excluded from or weighted differently in the AI assessment, where those criteria align with your brief and comply with Australian anti-discrimination law.
• Raise a concern. You may raise a concern about an AI-influenced outcome at any time and have that concern reviewed by the director not responsible for the mandate.

5. Algorithmic Bias — Our Monitoring Commitment

Rhodes & Co. conducts a quarterly review of RecruitIQ's scoring outputs across all active mandates to identify any patterns that may indicate inadvertent bias. This review examines shortlist outcomes against the broader professional pool and flags any demographic or experiential patterns inconsistent with the brief criteria.

Where a bias pattern is identified, the scoring parameters are reviewed and adjusted, the affected mandates are reassessed, and the finding is documented in the firm's internal bias review register. You will be notified if an active mandate is affected.

6. Limitation of Liability

Rhodes & Co. provides AI-assisted professional assessments as a professional service tool. To the fullest extent permitted by applicable law:

• Rhodes & Co. does not warrant that AI-generated scores, summaries or assessments will predict the performance, suitability or longevity of any professional in a role.
• Rhodes & Co. accepts no liability for any employment decision made by the client on the basis of AI-generated information, whether used in isolation or in conjunction with our professional recommendations.
• AI assessments are intended to complement, not replace, the client's own assessment processes including interviews, reference checks and skills testing.
• The client retains full responsibility for all hiring decisions. Rhodes & Co.'s role is to provide professional recommendations — the final decision rests with you.

7. Data and Privacy

Professional data processed through RecruitIQ is handled in accordance with the Privacy Act 1988 (Cth) and the Australian Privacy Principles. Professional information is collected with consent, used solely for recruitment purposes, stored securely, and accessible only to authorised Rhodes & Co. directors.

Client information — including role briefs, organisational details and hiring preferences — is treated as confidential and used only to inform the recruitment process on your behalf. It is never shared with third parties outside the engagement.

8. Your Obligations as a Client

• Provide a thorough and honest brief — including organisational culture, team context, the reason the role exists, and what success looks like at 3, 6 and 12 months.
• Disclose any relevant information about the role's history, previous incumbents or known challenges that may affect professional suitability.
• Conduct your own assessment processes — including interviews and reference checks — before making any employment decision.
• Advise Rhodes & Co. promptly if any brief criteria change during the search — changes affect the AI scoring and must be reflected in the assessment parameters.

9. Updates to This Disclosure

Rhodes & Co. reserves the right to update this disclosure as our use of technology evolves or as legislative requirements change. Clients will be notified of material changes. Continued engagement with Rhodes & Co. following notification constitutes acceptance of the updated terms.

By engaging Rhodes & Co. to conduct a recruitment search — whether verbally, in writing, or through the client portal — you confirm that you have read and understood this disclosure and agree to its terms. If you have any questions, please use the Contact pathway to reach your Rhodes & Co. director directly.

Effective May 2026 · Version 2.0 · Governing law: Privacy Act 1988 (Cth)