How to Write an AI Policy for Employees That Actually Works

Artificial intelligence is everywhere. Open your email and Google wants to summarize it for you. ChatGPT? Workers are using it for everything from replying to emails to coding and copywriting. Companies need a corporate AI policy for employees because there’s a dark side to this widespread adoption.

The Rise of Shadow AI: Why Your Team is Already Using It

You might ask your team to avoid these tools, but it doesn’t mean they’ll listen. A generative AI policy for companies only works when people follow the rules.

And a lot of them are not following policies.

Shadow AI, when someone engages in unauthorized use of artificial intelligence, is rising. Usage may include:

  • Chatbots
  • Plugins
  • Embedded AI features

If someone uses artificial intelligence within a SaaS product that they use, this also counts as shadow usage. Some statistics point to 90% or more of workers hiding this type of use from their employees.

Is it a big deal?

The hidden risks of copy-pasting company data into ChatGPT

As an IT service provider, we have to tell you that there are real risks of using chatbots with company data. Copying and pasting information into these bots does a few things:

  • Bots may use it in training
  • Compliance laws are often broken
  • Legal exposure rises
  • Reputational damage risks rise

If someone asks a question about your business or something related to the data entered, there’s a risk that some (or all) of it will be exposed.

Confidential data must stay off of chatbots because once it’s pasted in, it’s out of your company’s control.

Finding the Balance Between AI Productivity and Corporate Safety

Your company wants to increase output – who doesn’t? But, you can find a balance between a corporate AI policy for employees and safety. Work with your IT team and shareholders to determine:

  • Which tools to trust
  • What types of data to enter into them

Monitoring usage is the key to safely using AI.

Key Risks You Should Address Before Your Employees Hit "Enter"

If you’re asking the chatbot to help with your diet or travel plans, it’s not a big issue. But a generative AI policy for companies deals with sensitive data. While many risks exist, these are the most serious:

Data leakage and intellectual property concerns

Entering any of the following information poses a serious risk:

  • Client data
  • Financials
  • Strategies
  • Source code

As a company offering enterprise IT managed services, we must also stress the risk of IP exposure. Employees may share proprietary data or information, which can then be reconstructed by others.

The trap of AI hallucinations and factual errors

One thing that artificial intelligence does very well is be confident in incorrect output. You can have an argument with one of these tools about something you know is true, and it will insist it is not.

False citations. Incorrect statistics. Unrealistic claims.

Teams that fail to fact-check are at risk of falling into the hallucinations trap.

Essential Parts of a Modern AI Governance Plan: What Should an AI Policy Include?

Modern AI policies should be more than just a list of rules. They should provide clear guidance that can scale as AI tools and use cases evolve.

At minimum, your plan should focus on the following:

Defining “Acceptable Use” for different departments

A corporate AI policy for employees should have separate definitions of acceptable use for each department. Something that may be appropriate for marketing may be risky for legal, finance or HR.

Each department should have its own list of acceptable use cases to ensure clarity and lower risks.

Transparency: When to tell clients that AI was involved

Clients often expect or require disclosure when AI tools are used to produce work, especially in regulated or professional industries.

AI policies should clearly define:

  • When AI use must be disclosed to clients
  • How these disclosures should be communicated
  • The situations in which AI use is strictly prohibited

Setting Up Technical Guardrails Around Your Data

AI policies for companies are most effective when they are supported by technical guardrails. These controls help prevent sensitive data from being shared inappropriately and reduce reliance on manual controls.

Guardrails typically include:

  • Limitation of where data can be copied, uploaded or processed
  • Defining the types of data that can be shared with AI tools and the ones that are restricted
  • Monitoring and logging of AI-related activity to ensure accountability

Protections such as these reduce accidental exposure while still allowing employees to use these tools productively.

Training Your Staff: It’s Not Just a Document, It’s a Culture

Even the best AI employee policy will fail if your team doesn’t understand why it exists or how it applies to their work. That’s why training is such an important part of any AI governance strategy.

Effective training focuses on:

  • Explaining the risks of AI in clear, relatable terms
  • Providing examples of acceptable and unacceptable AI use
  • Ensuring your team understands the long-term consequences of improper use

Regular updates and refreshers will keep your team ahead of changes and reinforce expectations.

When employees truly understand the boundaries of AI and the logic behind them, responsible use becomes natural and a shared responsibility rather than just a compliance exercise.

How Cyber Husky Helps You Secure Your AI Workflows

It’s one thing to draft an AI employee policy. It’s another to ensure that policy is enforced. Our IT management services help secure your AI workflows to help you operate with confidence.

Implementing Managed Security to prevent Shadow IT

If AI tools are restricted without alternatives, employees won’t stop using them. They’ll just use them quietly – creating Shadow IT.

We help prevent employees from sharing sensitive data with unapproved tools by aligning our services with AI policies for companies. Here’s how:

  • Restrict access to unapproved AI applications
  • Provide approved, secure options employees can use with confidence
  • Identify and monitor AI tool usage across the organization

Paired with our cybersecurity services, you get peace of mind that your business’s data is monitored and protected.

Custom Microsoft 365 configurations for safer AI use

At Cyber Husky, we know that your AI policy for employees must align with your workflow. That’s why we implement the right Microsoft 365 configurations to reduce AI-related risk.

We customize your environment to ensure safe use while protecting company and client data.

This includes:

  • Access controls and permission management for tools like Copilot
  • Data loss prevention policies to limit sensitive data exposure

Final Steps: Keeping Your Policy Up to Date

The AI landscape changes every day. Your policy should evolve with it. Strong AI policies for companies are updated regularly. They’re treated as living frameworks that adapt as technology and regulations change. Take the same approach and you’ll futureproof your business while protecting its sensitive data.

FAQs

How do we keep our proprietary data safe?

First, distinguish between what’s consumer-grade AI (free tools) and what’s enterprise-grade AI (paid versions with “opt-out” clauses). If you aren’t paying for the product, don’t input your proprietary data into it.

How do we handle decreased accuracy over time?

Automation isn’t a one-time thing. AI models often become less effective over time, especially as company data and market trends change. The best practice is to set a quarterly audit to ensure your outputs still meet quality standards.

How often do we need to update our AI policy?

AI is constantly evolving. Your AI policy for employees needs to change with it. Set a quarterly review date. Make updates as needed to ensure it aligns with your current values and goals.

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