Guidelines and guardrails: AI policies in the workplace

Artificial intelligence (AI) is quickly becoming a fixture in modern business, promising productivity boosts, creative insights, and data-driven decisions. Yet for many employers, AI also introduces potential risks, especially when employees use it without clear guidance.

Why AI policies matter
Companies generally fall into three camps when it comes to workplace AI: total bans, partial restrictions, or full adoption. Whichever approach you choose, it’s essential to communicate your stance – and your reasons – to employees.

At the center of the issue is data security. When employees feed prompts into an AI tool, they’re effectively handing over information to a third-party service. If those prompts contain client lists, proprietary strategies, financial details, or other confidential business information, that data could be stored, processed, or even used to train future AI responses. That’s a huge risk.

Moreover, the quality and accuracy of AI output can vary widely. AI tools, even sophisticated ones, can produce summaries or answers that miss crucial nuances or exceptions to rules. Using AI-generated content without verification can lead to mistakes, poor decisions, or even regulatory violations.

In short, AI can be an excellent starting point, but it’s never a substitute for human judgment.

Caution on confidentiality
Even if your organization intends to ban AI outright, simply blocking access to AI sites on work computers may not be enough. Employees might still use AI tools on personal devices during breaks or after hours without understanding the risks.

That’s why it’s critical to explain the “why.” Employees need to realize that inputting company data into AI tools, even from personal phones or laptops, can jeopardize the company’s confidentiality obligations and legal compliance.

As the webinar noted, this is a slippery slope similar to social media. Employees often think they’re just being resourceful, but it can quickly turn into a breach of trust or even a legal problem. Clear, repeated messaging helps reinforce why certain boundaries exist.

Building a clear AI policy
If you’re drafting or updating an AI policy, don’t leave it vague. Employees might not intuitively know what “confidential” or “proprietary” information includes. Thus, it’s best to provide examples of confidential items that are relative to your business, such as:

• Customer names, addresses, and account details
• Internal financial reports and forecasts
• Product roadmaps, source code, or technical designs
• Legal documents or HR investigations
• Any personally identifiable information (PII)

The policy should also specify acceptable and prohibited use cases. For example, you might allow AI tools for brainstorming generic ideas but prohibit using them to analyze proprietary data.

Additionally, emphasize that employees remain responsible for verifying any information produced by AI. A chatbot or AI summarizer might give a helpful overview, but it should never be treated as factually authoritative.

Train, monitor, and update
Creating a policy is just the beginning. Employers should also train managers and staff on the policy and practical examples of do’s and don’ts, regularly review AI tools in use and assess risks, and update policies as AI technology and regulations evolve.

Above all, keep the conversation open. AI isn’t going away – it’s only going to grow. Businesses that set clear guidelines, educate their teams, and monitor use will be better positioned to reap AI’s benefits without stumbling into costly mistakes.

Whether your company decides to ban AI altogether or cautiously embrace it, one thing stands clear: ignoring AI is no longer an option. Put guardrails in place now, and you’ll protect your business and your people for the future.