Executive summary
What leaders need to know
Policy without approved tools fails. Tools without policy create shadow AI. You need both.
Section 01
Definition
An AI acceptable-use policy is a written standard that defines how employees may use generative AI with company and client information.
Section 02
Why it matters to the business
Leaders should care because the issue shows up as cost, risk, or lost capacity, not as a technical curiosity.
- Reduces confidential data leakage to public models
- Sets expectations for customer and regulated data
- Creates a basis for training and enforcement
Framework
What to do next
- 1
List prohibited data classes
Credentials, regulated data, client confidential, unpublished financials.
- 2
Name approved tools
Enterprise options with known data handling.
- 3
Require human review for external outputs
Especially legal, financial, and customer communications.
- 4
Train and revise
Update as tools and laws change.
Answers
Common Questions About This Topic
How long should the policy be?
Prefer a few pages of clear rules over a long legal novel nobody reads. Link to deeper standards if needed.
Should legal write it alone?
Legal should review. Operations and IT should help make it practical, or staff will work around it.