AI Policy Template for General / Other

Surveys consistently find that most employees who use AI at work do so without guidance — and many hide it. That's the worst of both worlds: you carry the risk while being unable to manage it. A written AI policy doesn't slow adoption; it legitimizes the productivity gains while drawing the few lines that matter: what data stays out of prompts, what gets reviewed, and who approves new tools.

AI risks specific to small businesses

• Confidential business information pasted into free AI tools may be retained and used for training
• AI output containing errors can flow unchecked into customer communications and contracts
• Employees are already using AI tools — usually without telling anyone
• Customer personal data in prompts can violate privacy laws and your own privacy policy

What a complete general / other AI policy includes

• Purpose, scope, and who the policy covers (employees, contractors, volunteers)
• Approved AI tools and the process for approving new ones
• Acceptable uses — and the prohibited list, including data that must never enter prompts
• Privacy-law clauses for your jurisdictions (GDPR, EU AI Act, CCPA, PIPEDA)
• Human review and accountability rules for AI output
• Incident reporting, enforcement, and annual review

Frequently asked questions

We're a small team. Do we really need an AI policy?

If employees touch customer data or confidential information, yes. The policy is two pages of rules that prevent the expensive mistakes — and clients, insurers, and partners increasingly ask whether you have one.

How long does adoption take?

Generate the policy, review it (ideally with counsel), share it with your team, and collect acknowledgments. Most small businesses finish inside a week.

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