AI Policy

An AI policy is a formal organizational document that defines the principles, rules, and boundaries governing how artificial intelligence may be used within an enterprise. It typically covers acceptable use cases, prohibited applications, data handling requirements, human oversight obligations, vendor evaluation criteria, employee training expectations, and processes for escalating concerns or incidents. AI policies operate at a higher level of abstraction than technical controls and are designed to guide decision-making across the organization.

In practice, an AI policy translates an organization's values and risk tolerance into actionable guidance for employees, procurement teams, and product developers. Without a clear policy, business units may adopt AI tools that expose the organization to data privacy breaches, intellectual property risks, or regulatory violations—often without realizing the exposure. A well-crafted AI policy reduces these risks while enabling innovation by clearly distinguishing what is encouraged, what requires review, and what is prohibited, creating a predictable environment in which teams can move quickly within defined guardrails.