Does Your Business Need an AI Policy?

Employees do not always wait for an organisation to formally adopt AI. They may already be using ChatGPT, Microsoft Copilot and other AI tools to draft documents, summarise information, research topics and improve productivity. One of the first governance questions is therefore: how are people already using it?

What does an AI policy do?

An AI policy establishes boundaries for the use of AI within your organisation. Rather than prohibiting useful technology, it can help employees understand what is acceptable and when additional approval or caution is required.

What should it cover?

Depending on your organisation, an AI policy might address approved AI tools, permitted and prohibited uses, personal data, confidential information, human oversight, checking AI-generated outputs, intellectual property, security, record keeping and escalation of concerns.

What information should not be entered?

Employees need clear guidance around personal information, confidential business material, client information, commercially sensitive documents and other restricted data. The appropriate rules depend on the AI tools being used and the organisation's arrangements with the provider.

What about inaccurate AI outputs?

Generative AI can produce plausible but inaccurate information. Employees should understand that an AI-generated answer should not automatically be treated as fact. Human review is particularly important where outputs could affect customers, employees, legal obligations or significant business decisions.

One policy is not the whole governance framework

A policy is useful, but it does not replace understanding your AI systems and use cases. As adoption develops, organisations may also need inventories, risk assessments, vendor reviews, training, governance responsibilities and escalation procedures.

Make the approach proportionate

A growing business using AI for basic administrative assistance does not necessarily need the governance infrastructure of a global technology company. Start with the actual risks your organisation faces.