AI in the Workplace: A Business Owner’s Guide to Policy, Compliance, and Practical Use

Artificial Intelligence (AI) is on everyone’s minds right now, and whether you’re in the board room or at a backyard barbecue, the topic is bound to come up. People are considering key questions, like how to use it ethically and how to leverage it to streamline operations and improve efficiency. Regardless of your personal opinions, beliefs, or willingness to use AI tools like ChatGPT, one thing is clear—AI isn’t going away anytime soon. 

As a business owner, now is the time to determine how your organization will utilize AI and establish expectations for its use by creating a comprehensive AI policy. In this blog, we discuss the importance of having an AI policy, what to include, and share our thoughts on how employers can effectively and ethically utilize AI in their businesses.

 

Why Business Owners Need an AI Policy

Before discussing what to include in an AI policy, it’s important to understand why having one is necessary in the first place. An AI policy is essential for several key reasons, including: 

• Clarifying expectations around employee use of AI tools like ChatGPT or Copilot 
• Outlining when employees need to disclose that AI was used to complete a task
• Protecting against data privacy risks, copyright issues, and misinformation

Just like any other polarizing issue, it’s natural that people have different levels of comfort with AI, and the same is to be expected in the workplace. For example, a tech start-up’s AI policy will likely be more progressive than that of a traditional law firm, which may be more cautious about adopting AI tools into its operations. 

Regardless of where your business’s boundaries with AI tools and technologies lie, having clear expectations about when and how they should be used is essential in today’s workplace. 

 

The Key Components of an AI Policy

When creating your business’s AI policy, there are several key components that we recommend including to ensure it’s the most comprehensive and enforceable. Below are a few of the key points to include.

1. Define what counts as AI in your organization

Clarify which AI tools your policy covers, such as chatbots, content generators, virtual assistants, or machine learning platforms. This helps eliminate grey areas and establishes clear expectations from the start.

2. Outline guidelines for when and how AI may or may not be used

Identify appropriate use cases (e.g., drafting internal communications, summarizing meeting notes) and clearly prohibit risky uses (e.g., using AI to write performance reviews, handle sensitive data, or make hiring decisions). We also recommend that you include expectations for human review of AI-generated content.

3. Establish data security considerations to safeguard client and company data

Emphasize that employees must not input confidential, proprietary, or personally identifiable information into AI tools, particularly those that store or learn from user input. You can also offer guidance on using secure, verified platforms when needed.

4. Set disclosure and assistance requirements

Require employees to disclose when content has been generated or assisted by AI, especially in client-facing or formal communications, to promote transparency and accountability.

5. Include training and oversight protocols

Provide training on the proper use of AI and establish oversight mechanisms to ensure that managers can verify policies are being followed. Assign someone from HR or leadership to track emerging best practices and update the policy accordingly.

When writing your AI policy, we recommend ensuring that it effectively and proactively safeguards your business while also offering flexibility as AI technology rapidly changes and advances.

 

Real-World Examples of Effective AI Use

While it’s important to proceed with caution, as is the case when adopting any new tool, there are numerous ways in which AI can effectively assist business owners and leaders. A few ways that AI can streamline operations and save time include: 

• Drafting an email or internal communication
• Creating the initial version of a policy or job description
• Brainstorming ideas for a new initiative 
• Generating an outline for a project
• Interpreting analytics into a more digestible synopsis 

The question shouldn’t be whether AI should or shouldn’t be used—it should focus on how to use these new tools effectively to make our lives easier without compromising ethics or safety.

 

The Risks of Unregulated AI Use

One of the main reasons we recommend employers have an AI policy is due to the risks associated with unregulated use. In the grand scheme of things, AI is in its early stages and is not yet foolproof, often producing inaccurate outputs. If your team heavily relies on AI and doesn’t do their due diligence to verify its outputs, your business could be at risk of reputational damage or worse, especially if it involves public-facing matters.

Aside from the risk of overreliance, legal and compliance issues also arise when using AI in the workplace without proper regulation and oversight. Plus, data leaks happen daily. The last thing you want is for your business or client data to be compromised due to a lack of AI governance within your organization.

 

Final Thoughts

While AI in the workplace is new and may come with risks if not handled carefully, avoidance is not the right solution. We encourage you to approach AI thoughtfully, communicating the best practices that work best for your organization to your team. 

If you have any questions about developing a compliant, customized AI policy or training your team on responsible use, Berger HR Solutions is here to help. Contact us at info@bergerhrsolutions.com or 410-695-9888 to get started.