In recent years, generative artificial intelligence (AI) has evolved from a cutting-edge novelty to an essential business tool, driving innovation and efficiency across various sectors. As AI technologies become more a part of everyday business operations, companies need to put in place robust AI policies. These policies serve not only as a guideline for responsible AI deployment and usage but also as a safeguard against potential ethical, regulatory, and operational pitfalls.  This article reviews some of the key components employers need to consider when drafting an effective and forward-looking AI policy for their organization.  Please note, this article primarily centers on generative AI, as it is the form of AI that many companies observe their employees utilizing.

Policy Purpose and Scope

As with any internal or external policy, it is important to clearly relay the purpose of the policy and to set its scope.  Essentially, this policy acts as a guide for how employees should use AI within the business. If a company does not develop its own AI tools, then the policy can focus more on guidelines for using existing tools. It is important to specify which AI tools employees can use. Some businesses provide specific AI platforms, while others allow the use of popular third-party tools like ChatGPT, Google’s Bard, or Microsoft Bing’s chat. Clarity is key, ensuring everyone understands and follows the guidelines.

Beyond listing AI tools, it also is important to clarify the contexts or situations where AI should be used and where it might be inappropriate. A company may have separate sections titled “Acceptable AI Usage” and “Prohibited AI Usage” to make it as clear as possible to employees.  This not only ensures proper use but can also prevent potential missteps that could lead to legal issues, like claims of infringement or data privacy or confidentiality violations, or even reputational damage. The clearer the boundaries and intentions are set in the policy, the easier it becomes for employees to navigate the world of AI responsibly and effectively within the organization.

Data Privacy and Security

Data privacy and security are subject matters that permeate through many company policies, and they have their role to play within a company’s AI policy as well.  In this section, an employer should outline the protocols for collecting, processing, and storing data used by AI tools. This should include clear guidelines on obtaining necessary permissions and consents, especially when handling personal or sensitive information. The policy should address any applicable encryption methods, secure storage solutions, and regular data audits that the company adheres to.  If the company is unfamiliar with a certain AI tool or it is uncomfortable with how an AI tool may handle personal or sensitive data, then the company may want to include a prohibition against entering such data into an AI tool.  

Intellectual Property and Infringement Concerns

As employees increasingly use AI to generate content, there is a risk that this content might inadvertently infringe on someone else’s intellectual property rights. The policy should emphasize the importance of correctly attributing and sourcing any AI-generated content that has not been created in-house. The policy should direct that employees must obtain the requisite permissions or licenses before using or sharing such content, especially if the AI’s results closely resemble existing works. Additionally, the policy should recommend regular evaluations of AI-produced content and the adoption of best practices. This ensures the company consistently upholds and respects the intellectual property rights of others. As a more conservative approach, companies might suggest employees use AI primarily as a brainstorming aid, rather than a sole content creator.

Designated Oversight and Policy Updates

Given the evolving nature of AI, with advancements and new tools emerging consistently, there likely will be questions from employees about a company’s policy and about AI in general.  The policy should identify either a main stakeholder or group of stakeholders who are responsible for overseeing the policy and who may be contacted with questions.  Additionally, these individuals should be responsible for reviewing the policy on a regular basis and ensuring that it is up to date based on changing AI technologies and applicable laws.  Further, this person or group should be responsible for informing other employees about any updates to the policy. 

Training, Monitoring, and Enforcement

            While it is important to have an AI governance policy in place, its effectiveness ultimately is measured by continuous and consistent enforcement and by the adherence to its stipulations by employees. Companies may use a variety of monitoring strategies to track compliance. Conducting regular audits can help identify deviations from policy requirements. AI systems themselves may be used to detect and record abnormal or unauthorized AI activities by employees. Regular or sporadic analysis of AI tool usage patterns can shed light on potential policy infringements. Further, creating a way for peers to anonymously report instances of non-compliance may help identify non-compliance concerns. Through these monitoring measures, companies can create an environment where AI is used responsibly, ethically, and in a way that should help avoid or mitigate any adverse impact on the company itself.When it comes to enforcement, the consequences for non-compliance should be clearly set forth in the policy. Appropriate penalties, ranging from verbal warnings to written reprimands, should be outlined based on the gravity of the violation. More severe breaches might result in mandatory training sessions, suspension, or even termination. By establishing clear repercussions and ensuring they are consistently applied, companies underscore their dedication to upholding the highest standards in AI utilization while maintaining a fair and accountable work culture.

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