AI is everywhere. In the past couple of years, it seems like every piece of software you use in your business now has an AI component. From drafting emails to meeting summaries, AI feels inescapable in business.
Many businesses have started embracing AI to help with their business. (My personal favorite use is help with spreadsheet formulas that used to stump me!) Even if you haven’t considered where AI will fit into your business, there’s a good chance that you or a team member may already be using it.
This leads to a big question: does your business need an AI policy?
For many businesses, the answer is yes. But your AI policy doesn’t need to be a 47-page document filled with rules that no one will read. It should reflect how your business actually uses AI and give your team clear guidelines about what’s okay and what isn’t.
What Is an AI Policy?
An AI policy is a set of guidelines for how your business uses artificial intelligence tools.
This can include tools like ChatGPT, Claude, Gemini, Microsoft Copilot, and other platforms with AI features. It can also cover AI tools that are built into software your business already uses, like Zoom, Canva, or Calendly.
An AI policy should give guidance on how AI can be used appropriately in your business.
For example, your AI policy might address:
- Which AI tools your team can use.
- When AI usage needs to be authorized or tracked.
- Whether your team can enter confidential or client information into an AI tool.
- When AI-generated work needs to be reviewed by a person.
- Whether AI can be used to create work product or deliverables for clients.
- How your business will handle AI-generated images, writing, or other content.
- Whether your team needs to disclose the use of AI in certain situations.
Not every business will need the same rules. A marketing agency using AI to help create client deliverables has different considerations than a small business using ChatGPT to brainstorm social media captions.
Does Every Business Need an AI Policy?
No. But if AI is being used in your business, it’s worth considering.
You may want an AI policy if your team is using AI as part of their work, particularly if they’re using it with client information, internal business information, or work that will eventually be delivered to a customer or client.
You should also consider an AI policy if your business encourages the use of AI tools. If you’re telling your team to use AI to become more efficient, it’s a good idea to also tell them where the boundaries are.
And remember, you don’t have to officially implement an AI tool for AI use to be happening within your business. A team member who opens a free ChatGPT account and uses it to help with a project is still using AI for your business.
If your current policy is basically, “I assume everyone is using common sense,” it may be time to get something more specific in writing.
What Should Your Business AI Policy Cover?
This is where I strongly prefer a customized policy over grabbing an AI policy template from the internet.
Like with all of your business documents, it’s critical that your AI policy considers what your business is actually doing.
- What tools are people using?
- What are they using them for?
- What kind of information are they entering?
- Are they creating internal work or client-facing work?
- Do your client contracts say anything about AI?
- Do any of your clients have their own rules about whether you can use it?
The answers to these questions will help you determine what your team should and shouldn’t be doing with AI and what needs to be covered in your policy.
Confidentiality & Account Security
One of the biggest issues is confidential information. Your team should understand what information about your business, clients, customers, or employees can be entered into an AI tool and whether that depends on the particular tool or account being used. You should also address account security, including whether team members can use personal accounts for business work.
Review of AI-Generated Work
You’ll also want to address review of AI-generated work. AI can produce something that looks extremely polished and is also completely wrong. If your team is using AI to create or assist with their work, your policy can establish when human review is required before that work goes anywhere else.
Other Potential Policy Topics
Depending on your business, you may also need rules around:
- Content creation and ownership: Your policy can address when AI can be used to create content and any limitations on using AI-generated materials.
- Creation of client work and deliverables: This should align with any AI requirements or restrictions in your client agreements or otherwise imposed by your clients.
- Disclosure of AI Tool Usage: Identify when your team needs to disclose that AI was used, whether internally or to a client.
- Approved tools: If you are providing a blanket authorization to use certain tools, you can include them. If you require approval before using certain tools, give an overview of how to make a request.
- Responsibility for AI-Assisted Work: Using AI doesn’t eliminate your team’s responsibility for the accuracy and quality of their work.
AI technology is changing quickly, so you want a policy that is agile and will give your team practical guidelines that they can actually follow.
An AI Policy Isn’t Just an Employee Policy
When businesses think about internal policies, they often think about employees. But many small businesses rely heavily on independent contractors. If your virtual assistant, social media manager, copywriter, designer, consultant, or other contractor is using AI while working for you, that may matter just as much as an employee’s use.
Depending on your business, you may want your AI policy to apply to both employees and contractors. You may also need to update your contractor agreements to address AI use, particularly when contractors have access to confidential information or create deliverables for your business.
Your AI Policy Should Fit Your Business
If there’s one thing I want you to take away from this post, it’s this:
Your AI policy should reflect what your business is actually doing.
You don’t need an artificial intelligence policy simply so you can check “AI policy” off your legal to-do list.
You need guidelines that make sense for your team, the tools you’re using, the information you handle, and the work you provide to your clients or customers.
How Liss Legal Can Help with Your AI Policy
At Liss Legal, we create AI policies for businesses based on how they’re actually using artificial intelligence. We can also review how AI fits into your existing employee or contractor agreements.
Not sure what your business needs? Contact us to book a consult and we’ll talk through how you’re using AI and what makes sense for your business.


