From buzzword to reality, Artificial Intelligence (AI) continues to impact businesses worldwide. Whether customer service, accounting, marketing, or HR, no business function has remained untouched by AI.

But how prepared is your business? In this article, we’ll take the next step forward from decoding the buzz to developing and refining your corporate AI policy.

The rise of AI in business

It’s hard to keep up, but these compelling statistics) offer a quick peek at the latest:

• The AI market is estimated to reach a whopping $1.34 trillion, with a 21% net increase in US GDP by 2030.
• 72% of enterprises use AI for at least one business operation, while 64% credit it with increased productivity.
• 65% of consumers trust organizations using AI if they do so “transparently and responsibly”.

These numbers are increasing fast—faster than we can tell whether it’s for good or bad. That’s why it’s crucial to reign in potentially harmful AI use with well-defined protocols. It’s time you seriously consider implementing a corporate AI policy within your organization, preventing your employees from causing disruption.

Read on to gain valuable insights on the what, why, and how of a corporate AI policy to protect your business from legal and financial troubles.

Definition: Corporate AI Policy

A corporate AI policy is a set of rules and regulations that acts as a roadmap for your company’s AI adoption journey. It ensures responsible AI use while maximizing benefits and minimizing risks.

A well-crafted policy drives risk-free decision-making, builds trust among your employees and customers, and protects your organization from AI-related risks.

Why you need a comprehensive corporate AI policy

One in 2016, and 25 in 2023. That’s a steep increase in the number of AI-related regulations in the U.S. Still, 75% of companies haven’t formed a workplace AI policy, putting their business at risk of data breaches, non-compliance, and reputational damage, not to mention heavy penalties.

For instance, per a study by CybSafe and the National Cybersecurity Alliance (NCA), 38% of professionals share confidential company information with AI tools, while 55% haven’t received any training on using AI safely.

While some corporations like Apple and Amazon have banned AI in the workplace, it’s not the solution. Instead, you need to craft an AI policy that acts as a guardrail for its reliable and ethical implementation. Here are the major reasons:

Laws and Regulations Compliance

As with any new technology, we are struggling to understand it, let alone regulate it. However, several administrations worldwide, including the US and EU, have begun enacting laws and regulations for responsible AI use.

Implementing a corporate AI usage policy allows you to abide by them, avoiding expensive sanctions and lawsuits.

Data Privacy and Security

Employees unaware of safe AI use may expose sensitive company information. For example, Samsung banned ChatGPT and similar tools after one of their engineers accidentally shared a sensitive code with ChatGPT.

A well-defined AI policy communicated to all stakeholders promotes the secure use of AI, minimizing the risks of such data breaches and intellectual property violations.

Bias and Discrimination

AI large language models (LLMs) are usually trained on a vast amount of widely accessible sources, which they use to churn out responses. What if the training sources are biased or inaccurate? This leads to erroneous, discriminatory, or even offensive outputs that could make your company suffer moral conundrums, legal hassles, and damaged credibility.

A corporate AI policy ensures you do not publish or use such information without neutralizing it first.

5 steps to create a strong corporate AI policy

Policies are essential for businesses to ensure smooth operations, guide employee behavior, and protect the organizations from mishaps. Since AI usage is radically impacting the way people work, your organization must implement a corporate AI policy whether you currently use it or not.

Use the following step-by-step process to create an all-inclusive corporate AI policy:

Step 1: Revisit existing policies and pulse employee sentiment.

An AI policy will be an addition to your current policies. Revise relevant existing policies to reflect AI integration and ensure consistency across all guidelines.

The group most affected by the AI policy will be your workforce. Keep them in the loop by asking them about their current AI usage, expectations for future use, and policy-related concerns. (More on employee feedback shortly!)

Step 2: Assemble a cross-functional team.

AI impacts nearly every team and their business functions. That’s why you must bring together key stakeholders, especially from HR, IT, InfoSec, legal, and compliance divisions to form an AI policy team.

Brainstorm ideas among the team members to identify high-risk areas and challenges associated with AI implementation, ensuring the creation of a comprehensive policy.

Step 3: Establish clear objectives and guiding principles.

Define specific goals you aim to achieve through AI adoption (why you’re using it) and align them with your business strategy. Determine exactly when and where you’ll authorize the use of AI tools (use cases) to add value to the workflows and outline the benefits for each.

For instance, you could automate repetitive, high-volume tasks to free your teams for more strategic tasks or use AI to perform data analytics for improved decision-making.

Also, factor in fairness, transparency, accountability, and data protection in AI usage, the aspects governing how AI tools should be used across your business.

Step 4: Draft the AI policy document.

Next, draft a set of guidelines and procedures to manage the use of AI within your enterprise. A well-defined AI governance framework will include the following key components:

• Purpose & Scope: Defining objectives, types of AI tools, use cases, users, benefits, etc.
• Data Management: Guiding data collection, storage, access, and sharing to safeguard the company’s digital assets and comply with AI laws and data regulations.
• Bias Handling: Addressing the issues of algorithmic biases and errors to ensure accurate, appropriate results.
• Approval: Establishing a process for approving AI tools, encompassing risk assessments, ethical reviews, and compliance checks.
• Employee Training: Outlining the guidelines to train employees on AI awareness, ethical considerations, and responsible usage.
• Monitoring & Audit: Defining procedures to continuously monitor AI usage for effectiveness, fairness, and data security as well as regularly audit existing tools to ensure policy compliance and implement updates.

Step 5: Launch and maintain your AI policy.

Now that you have the final policy, ensure organization-wide rollout by providing access and training to all employees. Simultaneously, keep monitoring AI usage to ensure its policy compliance.

Lastly, as AI technology evolves, your policy should too. Perform regular evaluation of your AI policy against new developments and adjust it accordingly. Also, consider consulting with industry AI experts to obtain insights into your policy’s effectiveness.

Listen to your workforce: Employee feedback matters

The workforce is considered the backbone of any organization. Not involving them in the AI policy creation can undermine its effectiveness and acceptance. It’s like organizing a carpool without knowing where your co-travelers need to go. You’ll end up driving in circles, wasting everybody’s time and ultimately getting nowhere.

The simplest way to engage your employees is to conduct a survey to gauge employee experience (EX) with AI tools, if any, or pulse their expectations and concerns regarding AI adoption.

You can ask your employees the following questions (survey template) and analyze their responses to build an effective and well-received AI policy:

1. How well are you aware of AI tools and how they work? (Options: Very well, Somewhat well, Not too well, Not at all, Is AI here already?)
2. Do you know we are developing an AI usage policy? (Options: Yes, No, Do we need a policy for that?)
3. How often do you use AI tools at work? (Options: All the time, Quite a lot, Sometimes, Never)
4. Please list the AI tools you use at work and briefly describe how you use them. (Open-ended textbox)
5. Rate the impact of using AI tools on your productivity and creativity. (Options: Huge, Significant, Moderate, Limited, Negligible, I don’t use AI)
6. What are the biggest benefits of using AI tools according to you? (Select One or More: Efficiency, Time-Saving, Cost-Saving, Other (Please Specify))
7. If you have used AI, have you experienced one or more of the following challenges? (Options: Ethical Dilemma, Biased or Inaccurate Outputs, Data Privacy Issues, Unexplained Behavior, Other (Please Specify))
8. Have you undergone training related to AI use? (Options: Yes, No)
9. If yes, list the title of the training you have completed. (Open-ended textbox)
10. Do you need AI-related training or support to perform your tasks more effectively and responsibly? (Options: Yes, No)
11. What are your biggest concerns or questions regarding the company’s AI usage policy? (Open-ended textbox)
12. Do you believe the company should have specific ethical guidelines for AI development and deployment? (Options: Yes, No)
13. Any suggestions related to the successful creation and implementation of the AI policy? (Open-ended textbox)

Create an AI policy that works for everyone

With AI becoming increasingly ubiquitous, a corporate AI policy is no longer optional. It can go a long way in ensuring effective, responsible, and ethical use of AI in the workplace and protecting your business from legal ramifications and disgrace.

Involving all stakeholders and gathering feedback about current AI usage and future expectations is the first step toward creating a successful enterprise AI policy.

Explore SogoEX today to build employee-friendly surveys with ready-to-use templates and real-time advanced analytics to pulse AI acceptance and craft a corporate AI policy that resonates with your workforce.