Writing an AI Policy: A Step-by-step Guide

Artificial intelligence (AI) is becoming more popular, powerful and is being used in a wide variety of industries. While AI helps streamline daily tasks, it’s not a one size fits all solution. Without writing an AI policy to put in place, AI usage in your workplace puts your business, intellectual property, and confidential business data at risk.

Set your organization up for success by establishing clear AI policies and best practices.

Where should you start?

AI is complex, and writing an AI policy for your company can feel overwhelming. But before jumping in, start with the basics and assess your goals. What problems do you want AI to help solve? How will you define and measure success? Next, identify your key stakeholders. These include the people who will write, review, and be impacted by the policy. Involving the right team from the start helps ensure your policy is practical and well-rounded. Lastly, review technology that is already in use.

Do existing tools your company uses, like Chrome or Microsoft Edge have built-in AI features? If so, learn what those features are doing behind the scenes. It is crucial to ensure ethical, effective, and secure use of AI tools like Microsoft Copilot, ChatGPT, and other machine learning technologies.  It’s also important to identify any tools that may pose risks. For example, U.S. federal agencies like NASA and the U.S. Navy have instructed employees against using DeepSeek due to national security concerns. 

Build your policy

Tailor your policy to your business values and carefully consider how AI technologies will be used in your workplace. Prioritize clear goals to guide AI usage towards beneficial outcomes when writing an AI policy.

Use the prompts and examples in this guide to walk through the process step-by-step, helping you craft a comprehensive policy that aligns with your business needs and values.

Step 1: Define the purpose and scope

Prompt:

• Purpose: Why is this AI policy important for your business? Further, what do you hope to achieve with it?
• Scope: Who does this policy apply to? Which departments, roles, or functions will be affected by AI usage? Finally, what are acceptable and unacceptable use cases?

Example: “The purpose of this AI policy is to ensure the ethical, efficient, and secure use of AI technologies within [Company Name]. This policy applies to all employees, contractors, and partners who use AI tools and systems in their roles. Specific roles and responsibilities for AI-related decisions are defined to ensure accountability.

Acceptable uses of AI at [Company Name] include:

• Automating routine tasks such as scheduling and data entry.
• Analyzing large non-confidential datasets to generate reports and insights.
• Enhancing customer service through chatbots and automated responses.

Non-acceptable uses of AI at [Company Name] include:

• Using AI in ways that could lead to discrimination or bias.
• Violating HIPAA and privacy by using AI to access or share confidential information without consent.
• Making unethical decisions or actions based on AI recommendations.

Step 2: Address privacy and security

Prompt:

• Data protection & privacy: How will you ensure compliance with data protection regulations like the California Consumer Privacy Act (CCPA) or the General Data Protection Regulation (GDPR) if you have clients or users in the European Union? In addition, how will you protect user data and ensure AI tools comply with privacy regulations? Will you use encryption to protect sensitive data?
• Security measures: What security protocols will you implement to protect AI systems from cyber threats? Also, will you conduct regular security audits to identify and address vulnerabilities?
• Access control: Will you restrict access to only approved AI tools and only to specific authorized personnel?

Example: “All AI applications comply with relevant data protection regulations, including GDPR and CCPA. Robust security protocols are implemented to protect AI systems from cyber threats, and regular security assessments will be conducted. Security measures must be followed rigorously by all authorized users.”

Step 3: Ensure compliance and legal considerations

Prompt:

• Regulatory compliance: How will you stay updated on relevant laws, regulations and industry standards?
• Intellectual property: How will you address ownership and rights related to AI-generated content and innovations?

Example: “[Company Name] will stay updated on laws and regulations governing AI use and ensure compliance. AI-generated content and innovations are the property of [Company Name]; employees will be informed about and must adhere to intellectual property policies. All data processed by AI systems must be kept confidential and secure. Unauthorized access or disclosure of data is strictly prohibited. AI must be used ethically and responsibly, with any misuse resulting in disciplinary action.”

Step 4: Plan for operational efficiency

Prompt:

• Integration: How will AI integrate with existing systems and workflows?
• Promote collaboration: How will you promote collaborative use of AI tools to enhance productivity and innovation?

Example: “AI technologies will be integrated with existing systems and workflows to enhance operational efficiency. AI literacy is important to [Company Name], employees will receive training to understand and effectively use AI tools in alignment with company strategy.”

Step 5: Set up performance monitoring

Prompt:

• Metrics: What metrics will you use to evaluate the performance and impact of AI systems?
• Quality assurance: What quality assurance processes will you use to monitor the performance and accuracy of AI tools?
• Continuous improvement: How will you review and update AI policies based on performance data and technological advancements?

Example: “Clear metrics such as [insert Company metrics] will be used to evaluate the performance and impact of AI systems. Regular reviews are conducted to ensure AI technologies are meeting business objectives, as well as following standard operating procedures to vet quality of AI outputs, and regular updates to policies based on performance data and technological advancements.”

Step 6: Involve employees

Prompt:

• Feedback mechanism: How will you create channels for employees to provide feedback on AI tools and their impact?
• Support: What resources and support will you offer to help employees adapt to AI-driven changes?

Example: “Employees have access to share feedback about our AI tools and their impact on the dedicated AI Team Chat or via form submission [insert link to company form]. Resources and support are offered to help employees adapt to AI-driven changes, with training and development programs available for effective and responsible use.”

Step 7: Maintain ethical standards and transparency with customers/users

Prompt:

• Disclosure: How will you inform customers when AI is used in interactions or decision-making processes?
• Bias and fairness: What measures will you take to detect and mitigate biases in AI systems?
• Consent: How will you obtain consent from customers for data usage and AI-driven processes?

Example: “To maintain trust and confidence, [Company Name] prioritizes AI systems that are transparent, fair and explainable. Regular audits are conducted to detect and mitigate biases, ensuring fair treatment of all individuals. Customers will be informed when AI is used in interactions or decision-making processes. Privacy policies are clearly communicated, and consent will be obtained for data usage and AI-driven processes.”

Step 8: Implement risk management

Prompt:

• Adopt a structured risk management framework: Which structured risk framework strategy will best suit your organization to utilize AI securely and confidently? Ex. the National Institute of Standards and Technology (NIST) AI Risk Management Framework (AI RMF), the EU AI Act, and ISO 42001.
• Risk assessment: How will you conduct regular risk assessments to identify potential issues related to AI use?
• Contingency plans: What contingency plans will you develop to address AI system failures or malfunctions?

Example: “[Company Name] will follow the protocols of [AI Risk framework]. Regular risk assessments are conducted to identify, assess, and mitigate potential issues related to AI use. Contingency plans are in place to address AI system failures or malfunctions, with rapid response protocols established.”

Step 9: Foster innovation and adaptation

Prompt:

• Stay informed: How will you encourage continuous learning and keep abreast of the latest AI developments and best practices?
• Flexibility: How will you ensure your AI policies are flexible to accommodate technological advancements and changing business needs?

Example: “[Company Name] recognizes that AI technology’s rapid advancement requires constant monitoring of the latest AI developments and best practices to ensure balancing innovation with responsible use. AI policies are flexible to accommodate technological advancements and changing business needs, encouraging continuous learning and adaptation.”

Stay flexible

Although generative AI can solve many business challenges, using AI brings a host of new issues to wrangle – confidentiality, intellectual property rights, ethical use standards and security. Start formalizing writing an AI policy and best practices that will best suit your organization. Also, know that AI cannot replace critical thinking and validating information. An essential component of successful AI use requires human review to assess AI output quality. Especially, take care and be vigilant by prioritizing a strong AI governance strategy in the workplace by regularly reviewing and adjusting your policy as machine learning technologies and your business needs evolve.

Related: The Dos and Don’ts of AI in the Workplace

This article is for informational purposes only and does not constitute legal advice. Readers should first consult their attorney or adviser before acting upon any information in this article.