Back to glossaryDefinition
AI Policy
An AI policy is a formal document that defines how employees of an organization are expected to use AI tools — what's permitted, what's prohibited, what data can be processed by AI systems, and what review is required for AI-generated outputs. A basic AI policy for most SMBs covers four things: approved tools, data handling rules (especially around confidential client information), output review requirements, and disclosure expectations. Policies should be practical and clear rather than exhaustive — the goal is to enable safe AI use, not to create bureaucratic barriers to it.