How to Write an AI Policy for Your Company (Free Template)

Introduction

AI is rapidly becoming a core part of business operations—from automating customer service to generating marketing content and analyzing data at scale. But with great power comes great responsibility. As your teams start using tools like ChatGPT, Midjourney, or Jasper, the absence of clear guidelines can lead to misuse, compliance risks, or brand damage.

That’s where a company-wide AI usage policy comes in.

In this guide, you’ll learn exactly how to write a clear, actionable, and ethical AI policy for your company, plus access a free downloadable template to help you get started immediately.

Why You Need an AI Policy

1. Protect Your Brand and Reputation

AI can generate inaccurate or biased content. A policy defines what is and isn’t acceptable use, reducing reputational risk.

2. Ensure Compliance and Data Privacy

Regulations like the EU AI Act, GDPR, and CCPA are getting stricter. A policy ensures your team uses AI in a way that meets legal standards.

3. Promote Responsible Use

AI shouldn’t replace human judgment. Policies help maintain ethical standards, avoid bias, and encourage human oversight.

4. Support Innovation with Guardrails

The goal isn’t to block AI—it’s to enable safe, productive use across the business.

Who Should Be Involved in Writing It?

• Legal & Compliance: To handle privacy, contracts, and risk

• HR: For employee rights and acceptable use

• IT & Security: To enforce access and infrastructure controls

• AI/Tech Teams: To shape technical boundaries and opportunities

• Department Heads: To reflect real-world business use cases

Key Sections of an AI Usage Policy

Below is a structure you can follow:

1. Purpose of the Policy

Explain why the policy exists, its scope, and its intended goals (e.g., encourage responsible AI use, prevent misuse, support compliance).

Example:
“This policy outlines acceptable and ethical use of artificial intelligence (AI) tools by employees to support productivity, innovation, and brand integrity.”

2. Scope of Application

Define who the policy applies to—employees, contractors, vendors—and which tools or AI systems it covers.

Example:
“This policy applies to all employees using third-party AI platforms (e.g., ChatGPT, Jasper, Midjourney) and internal AI tools developed by the company.”

3. Acceptable Use Guidelines

Outline approved use cases and rules.

• ✅ Approved: Summarizing notes, drafting code, idea generation, image creation
  
  

• ❌ Prohibited: Sharing confidential data, using AI to impersonate others, making hiring/firing decisions without review

4. Prohibited Use

List specific actions that are not allowed, such as:

• Uploading sensitive internal documents

• Using AI to create fake or misleading content

• Relying solely on AI without human review for high-stakes decisions

5. Data Privacy & Security

Define what types of data can be used with AI systems and what must remain off-limits (e.g., customer PII, financial data, legal documents).

• Require users to verify if AI tools store or train on data

• Enforce use of company-approved tools with proper data handling protocols

6. Bias & Fairness

Require users to:

• Be aware of potential bias in AI-generated content

• Avoid discriminatory outputs

• Ensure fairness in hiring, customer engagement, and decision-making

7. Transparency & Disclosure

Encourage or require employees to disclose when content or communication was AI-generated, especially in external use cases (e.g., reports, emails).

8. Human Oversight

Clearly state that all AI-generated content must be reviewed by a human before publication or decision-making.

Example:
“AI-generated outputs are not final. A responsible human must review and approve before use in customer-facing or strategic contexts.”

9. Compliance and Consequences

Include consequences for violating the policy, ranging from retraining to disciplinary action. Also mention updates to the policy as AI tools evolve.

10. Reporting & Support

Create a path for employees to:

• Ask questions

• Report policy violations

• Suggest improvements

Assign a contact point (e.g., AI Policy Lead or Legal team).

Free AI Policy Template (Copy & Paste)

Here’s a simple, customizable starting point:

[Company Name] – AI Usage Policy (2025)

Last Updated: [Date]
Owner: [Department or Team]

1. Purpose

This policy provides guidelines for the responsible and secure use of artificial intelligence (AI) technologies to support innovation while minimizing risks.

2. Scope

Applies to all employees, contractors, and partners using AI tools (e.g., ChatGPT, Midjourney, Jasper) in the course of their work.

3. Acceptable Use

✅ Use AI for:

• Drafting internal documentation

• Brainstorming and ideation

• Basic data summaries

❌ Do NOT use AI for:

• Uploading sensitive or regulated data

• Making hiring/firing decisions

• Bypassing compliance protocols

4. Data Privacy

Do not input confidential data into public AI tools. Use only company-approved platforms.

5. Fairness and Bias

Users must check for harmful, biased, or offensive outputs and flag any ethical issues.

6. Human Oversight

All AI-generated outputs must be reviewed by a human before being shared externally or used for business-critical tasks.

7. Disclosure

Indicate when AI was used in producing content (as required).

8. Enforcement

Violations of this policy may result in access restrictions, retraining, or disciplinary action.

9. Contact

For questions, contact: [AI Policy Officer / Legal Team]
Email: [email@company.com]

Best Practices When Rolling Out the Policy

• 📣 Announce the policy via all-company emails, town halls, or team meetings.

• 💻 Include training on tools like ChatGPT, Midjourney, or company-specific AI platforms.

• 📁 Store the policy in your knowledge base (Notion, Confluence, etc.).

• 🛡️ Revisit and update quarterly as AI capabilities—and laws—evolve.

Final Thoughts

An AI policy isn’t just a legal safeguard—it’s a leadership signal. It shows your company takes AI seriously, balances innovation with responsibility, and sets a strong cultural tone for ethical use of powerful technologies.

Start simple. Keep it clear. Update often.