Artificial intelligence (AI) is no longer a theoretical business tool. It is a real tool your employees are likely using today. Whether it is for writing emails, summarizing documents, or analyzing data, AI is quickly becoming a daily part of business. But without clear rules in place, it is also becoming a serious legal and security risk.
That is where an AI policy comes in.
What Is an AI Policy?
An AI policy is a set of rules telling your employees how and when they can use AI at work. It should cover what tools they can use, what kind of data they can input, what they can do with the output, and what to do in case a problem arises.
Without an AI policy, employees might put private customer data into public AI tools. They might use AI to make business decisions without understanding the risks. Or worse, they might publish AI-generated content that violates someone’s copyright or privacy rights.
Why Do You Need One?
1. To protect your data.
Most public AI tools learn from the data you give them. If one of your employees pastes a confidential contract into an AI tool, that contract could end up in someone else’s AI-generated document tomorrow.
2. To avoid breaking the law.
AI tools are powerful, but they’re also unpredictable. They can generate false or misleading information. If you rely on that information to make decisions or share it with others, you could be held responsible.
3. To control who owns the work.
Unless your employee changes the AI output in very specific ways, your company may not legally own it. That could mean losing control over marketing materials, code, or other creative work you thought belonged to you.
4. To manage employee use.
Without trackable login credentials and documented use, you cannot monitor who is using AI or how they are using it. That opens the door to misuse, inefficiencies, and even legal exposure.
5. To limit liability.
Improper use of AI can cause catastrophic damage for which your company may be liable. Putting all employees on the same page, when it comes to appropriate use of AI, reduces the chance that you find your company on the angry end of a large lawsuit.
What Should an AI Policy Include?
Depending on how big your company is and what it does, your AI policy may include one or more of the following clauses:
- Approved AI platforms and use cases
- Privacy and data protection rules
- Periodic system assessments for accuracy, reliability, and security holes
- Risk management protocols
- Human review and editing of AI content before dissemination outside company
- Employee training requirements
- Compliance mandates to comport with changing laws governing AI use
- Respect for third-party copyrights
- Ownership rules for AI-generated materials
- Required employee training and consent
- Address industry specific laws – HIPAA, CCPA, GLBA, COPPA, etc.
- Designate Data Protection Officer and duties
- Unique AI usage credentials
- Issue reporting procedures
- Human oversight and consequences for breaking the rules
- A list of approved AI tools for approved uses
- Time periods to review and revise the AI policy
Customize Your AI Policy
When it comes to AI policies, there is no one-size-fits-all solution. Different companies use AI in different ways, which means they all need different AI policies to address these differences. Whereas smaller companies may not require a dedicated Data Protection Officer, very large companies may require an entire data protection department. Most importantly, do not include anything in your data protection policy that you do not intend to enforce. Including mandates in your data protection policy that you refuse to enforce may actually backfire on you, exposing you to even more liability than if you had simply not addressed that particular issue at all.
The Bottom Line
Implemented correctly, AI can save your company time and money, but it can also create serious problems if used the wrong way. An AI policy helps you extract the benefits of AI while avoiding the risks. Most importantly, an AI policy, customized for your company, places everyone in your company on the same page when it comes to proper use of AI. This reduces the likelihood of misuse and the potential catastrophic legal liability that comes with it.
If you do not have an AI policy, now is the time to start. The sooner you start setting out clear rules for AI use, the better protected your company will be.
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