Artificial intelligence (AI) isn’t just a buzzword anymore—it’s become part of everyday work life. Tools like ChatGPT, which launched in late 2022, have taken off faster than most tech trends we’ve seen. According to a recent McKinsey report, 79% of professionals have utilized generative AI, and 22% report using it regularly at work. Such rapid adoption is hard to ignore.
So, what does this mean for your company? Whether you’ve formally introduced AI tools or not, chances are your employees are already experimenting with them. That’s why it’s more important than ever to have an AI policy in place.
The Hidden Risk: When AI Use Goes Unchecked
If you’re thinking, “We don’t use AI here, so we don’t need a policy,” it might be time to reconsider.
The truth is, your team might already be using AI without your knowledge. A Gallup survey found that “44% of employees say their organization has begun integrating AI, only 22% say their organization has communicated a clear plan or strategy for doing so.”
This kind of “under-the-radar” or unregulated AI use—often called shadow AI—can open the door to real problems, including:
- Exposing sensitive company or customer data to third parties
- Using unapproved tools with unclear privacy protections
- Creating content or making decisions without oversight
- Running into legal or compliance issues
In short, just because it’s not visible doesn’t mean it’s not happening or causing risk.
A Smart Move: Why an AI Policy Matters
An AI policy isn’t about limiting innovation. It’s about establishing a clear and responsible framework for utilizing AI at work. When everyone knows what’s allowed, what’s not, and how to use these tools safely, you reduce risks and make room for smart, strategic use of technology.
Here’s what a good AI policy usually covers:
1. Why You’re Using AI (and Where)
Start by explaining what role AI plays in your company or what roles it might play. Be clear about which tools or tasks are okay for AI use and where human oversight is required.
2. Data Privacy and Security
AI tools often process a large amount of data, and not all of them handle it in the same way. Your policy should lay out how data should (or shouldn’t) be shared, stored, or used with AI tools, especially when personal or sensitive information is involved.
3. Who Owns the Work?
If an employee uses AI to generate content, who owns it? Make sure your policy covers intellectual property rights and the use of AI-generated output.
4. Ethics and Fairness
AI isn’t perfect, and it’s only as good as the data behind it. Your policy should clearly state that bias, discrimination, or a lack of transparency in AI-powered decisions won’t be tolerated.
5. Monitoring and Updates
AI is changing quickly, and so should your policy. Build regular reviews into the process to keep it relevant, and define how the company will monitor AI use moving forward.
6. Staying Compliant
New regulations surrounding AI are emerging rapidly. Your policy should ensure your company follows current laws (like GDPR or CCPA) and is ready to adapt to future legal requirements.
It’s Not Just About Risk—It’s About Readiness
Yes, a policy helps you avoid pitfalls. However, it also does something more important: it sets your company up to actually leverage AI.
By providing employees with a clear, ethical, and practical framework for utilizing AI, you create an environment that fosters creativity, innovation, and efficiency. You build trust with your team and your customers. And you send a clear signal: this is a company that’s thinking ahead.
Final Thoughts: Don’t Let AI Catch You Off Guard
AI is already here, and it’s moving fast. Waiting to figure it out later is a risk that most businesses can’t afford. Whether you’re fully invested in AI or just beginning to explore its possibilities, a well-thought-out policy is the foundation for safe, smart, and responsible use.
Should you use AI to draft your AI Policy?
YES and NO! I have seen too many instances where a CEO/CHRO/Manager has relied on AI to draft internal corporate policies.
The result: a generic policy that doesn’t address specifics and potentially conflicts with how you intend to use AI. The problem is that AI is only as good as the inputs you give it.
If you don’t provide detailed parameters on what the policy should cover and what position to take, you may get a bland catch-all policy that doesn’t address your specific concerns.
The use of AI still requires expert oversight, and most businesspeople do not yet possess it. AI is a new technology, and the best practice would be to consult an attorney who knows what questions to ask and which details are essential to highlight.
Your attorney is in the best position to use AI to draft your policy correctly, but it still requires their oversight. You can ask your attorney to use AI, and they can pass the savings from the reduction in time on to you.
If you must draft your AI Policy yourself, it would be beneficial to have an attorney review the final product and provide comments and questions to offer some oversight.
I would be happy to help you consider the risks of using AI in your business and develop a policy that makes sense. Additionally, I will utilize AI to draft the policy, ensuring that my fee reflects the benefits of AI.
Please contact me at gmelman@thebtattorneys.com or +(1) 713-304-2396 if you would like to discuss the impact of AI on your business.