What is an Artificial Intelligence Policy? Does Your Business Need One?

The field of artificial intelligence is taking the technology world by storm, and shows no signs of slowing down. Businesses of all kinds are finding ways this technology can contribute to overall productivity. As with any new idea, best practices can take a little time to catch up, which leads to the following question: Does your business need an artificial intelligence policy? Read on for the answer, and find out how to craft a policy that benefits everyone.

How Is Artificial Intelligence Used in Business?

Artificial Intelligence (AI), according to IBM, is “technology that enables computers and machines to simulate human learning, comprehension, problem solving, decision making, creativity and autonomy.” AI can accomplish tasks that have been traditionally reliant on human brainpower. Very few people suggest that all business can be run with machines; in fact, lots of industries rely on humans for face-to-face interactions. But even people-forward businesses can harness the power of AI for work such as:

• Voice learning processing that more efficiently respond to customer service inquiries
• Features that analyze data and leads to identify potential sales opportunities
• Spam filtering that learns new types of spam and cybersecurity threats as they appear
• Financial analysis that determines whether candidates are qualified for loans
• Accurately analyze and sort through resumes and applications for greater HR efficiency
• Providing product recommendations specifically catered to a customer’s interests

What Is an Artificial Intelligence Policy?

Employers looking to integrate AI into their workflow have some decisions to make. Compliance and risk mitigation expert Carrie Cherveny suggests that employers should “decide if they will allow the use of AI in the workplace and whether AI will be limited to a specific platform. Likewise, employers will have to identify the departments and roles that are permitted and/or prohibited from using AI. Well-crafted policies are designed to specifically address these questions and more.”

A good place to start is to form an AI committee that includes someone from each department. Depending on your industry, that may include someone from the legal, human resources, and/or regulatory compliance. This group should decide extremely clear and unambiguous parameters of AI usage in your company, Cherveny says, with considerations like:

• Permitted Use of AI: For example, can teams use tools for research but not drafting of documents?
• Prohibited Use of AI: e.g., no personal or confidential data may be entered into a tool
• Required Safeguards: For example, what level of fact-checking is required? 
• Required Disclosure: e.g., should clients or customers be informed of AI usage, and how? Local and state laws may inform this requirement.
• Scope: For example, how does the policy apply to all hourly and salaried employees? Contractors? Vendors?
• Required Attribution: e.g., does the AI tool in use require attribution or citation in final documents or presentations?
• Governance: For example, who manages enforcement of the policy? What penalties are in place for misuse?

When crafting AI policy, it’s important to thread the needle between healthy skepticism and wholesale embrace. Jeremie Brecheisen outlines the quandary in which many business leaders find themselves:

“On one hand, leaders may be keen to promote a culture of agility, collaboration, and innovation. . . When fear-based, rules-heavy strategies take root, innovation can be inadvertently stifled. What begins as reasonable safeguarding can curb the very creativity leaders seek.”

Creating a well-balanced policy ensures all employees can approach AI use with no confusion. New technology invites experimentation; when ChatGPT came on the scene, people used the tool for writing entire papers, creating schedules, automating processes, and so much more without considering any ramifications. Organizations were forced to catch up quickly and find ways to protect their interests while still embracing how this tech can benefit their productivity. An Artificial Intelligence policy is ultimately the best way to invite that protection.

Does Your Business Need an Artificial Intelligence Policy?

It’s not too late to craft a policy even if your company has started integrating some AI features. The policy of a large corporation will differ in length and scope than one of a small business, of course, but the short answer is: yes, your business needs an artificial intelligence policy.

Recent Gallup data shows many employers aren’t aware their employees are already using AI. The majority of regular AI users said they used it for various tasks, learning, and problem-solving. Even at a small company, ignorance about AI usage among employees can lead to misinformation or compliance problems—minor headaches at best, costly mistakes at worst. Many people may not realize the inherent risks that come with AI since the outcomes can be remarkable for workflow.

Successful businesses find ways to embrace useful tools while preserving their integrity of vision. Artificial Intelligence technology can save time on menial tasks and contribute innovative ideas. With a well-developed AI policy, this technology can work hand-in-hand with your most valuable assets—your employees.