Why Having An Artificial Intelligence (AI) Policy May Save Your Organization
Employees are using artificial intelligence (AI) to help do their work. They’re drafting emails, summarizing documents, analyzing data, writing code, and preparing presentations. If an organization doesn’t have a workplace AI policy, they have an unmanaged risk. Every organization, regardless of size or industry, needs to have a plan in place to regulate usage to protect information technology (IT) systems, proprietary information, and prevent copyright infringement.
What is artificial intelligence?
Artificial intelligence (AI) is technology that enables computers and systems to perform tasks that typically require human intelligence. The most commonly used form of AI is “machine learning”, which analyzes large amounts of data to find patterns to make predictions or decisions based on that data. One example is that AI has the ability to review a large number of resumes to learn what a good resume contains. It then uses the results of this analysis to screen new resumes to match the essential duties and responsibilities in a job posting.
A more advanced form of AI is “deep learning”. This form analyzes digital data like images, sound, and text, similar to the technology that powers facial recognition on a mobile device or the voice assistant in a smart speaker. Lastly, “natural language processing” gives systems the ability to read, understand, and generate human language, like a customer service chatbot that answers frequently asked questions.
The Benefits of Using Artificial Intelligence
Artificial intelligence (AI) allows employees to automate repetitive administrative tasks like data entry, generating reports, scheduling appointments, and using chatbots to respond to basic client/customer service complaints. This frees up more time for employees to handle tasks that require human interaction, such as critical and strategic thinking, cognitive skills, creativity, and empathy.
The Risk of Using Artificial Intelligence
Using artificial intelligence (AI) without regulation poses several risks to organizations: data leakage of confidential information, trade secrets, protected health information, and client/customer data; the inability to know if the information received is factual; infringement of copyrighted information; and the potential of bias and discrimination in decision-making are all risks that may result from using AI without rules in place. These risks expose organizations to liability by not safeguarding proprietary information, as any information provided to AI becomes a part of public domain.
Do employers really need an artificial intelligence (AI) policy?
The short answer is YES. While one single policy cannot address everything, artificial intelligence (AI) policies should at least outline why the policy exists, which is to ensure AI usage only supplements human intelligence and judgment, not replaces it. A good policy should specify which AI tools are approved, if any licenses are required, and from whom the employee should receive approval to use these tools. AI policies should clearly state what information should never be entered into public AI tools, such as trade secrets and confidential business information, sensitive financial data, protected health information, and client/customer data. Organizations should also require employees to verify AI-generated content before relying on or distributing it. The policy should also enforce the importance of not infringing on the copyright or trademark of other entities, or misusing any images, voices, or likenesses.
Employers should regularly review and update their artificial intelligence (AI) policy. Technology evolves at the speed of light, so an AI policy may be outdated as soon as it’s implemented. Treat it as a living document, not a one-size-fits-all policy.
The Bottom Line
Artificial intelligence (AI) isn’t going anywhere. It’s making everyone faster and more productive. The question is shifting from whether employees in the workplace will use AI to how they should use it in the workplace. A carefully drafted AI policy allows employees to benefit from AI usage, while also protecting the organization’s data, reducing legal and operational risks, setting boundaries for usage of AI tools, and even building trust in these tools by creating a framework for permitted usage.
For additional information on artificial intelligence (AI) policies in the workplace, please contact us at www.newfocushr.com.
Written by:
- Imani Murphy, MSM, SHRM-SCP
Senior HR Consultant
07/17/2026
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