Governance
What actually belongs in an AI acceptable use policy
Almost every organization we engage with has deployed AI before writing a policy for it. The policies that do exist are usually one or two hurried pages of prohibitions — which is why nobody follows them.
The short answer
An AI acceptable use policy should define approved tools, prohibited data, and a fast path to request something new.
The most common failure is a one- or two-page document that lists only what is forbidden. A policy that never describes good use gives employees no way to act correctly, so they improvise.
Name specific applications and specific use cases rather than writing in generalities. "Do not enter confidential information" is not actionable; "do not paste client files into a consumer chatbot, use the approved enterprise workspace instead" is.
Include a request workflow with a real deadline. Without one, staff bypass the policy out of frustration and you have created the shadow AI problem you were trying to prevent.
Roughly 99% of the organizations we engage with have no AI acceptable use policy at all. That number holds whether the organization is regulated or unregulated, which surprises people who assume this is a compliance-driven exercise. It is not. Regulated firms are no more likely to have one than a marketing agency; they simply face steeper consequences when something goes wrong.
What almost all of them have done is deploy AI first. Licenses get bought, staff start using tools, and governance is treated as something to sort out later. By the time anyone writes a policy, there is already a year of undocumented usage to reckon with.
From our engagements
We have operated under our own AI acceptable use policy for about two years. That is not a credential so much as context: the recommendations below are the ones we apply to ourselves, and several of them exist because our first version was wrong.
Why most AI policies fail on arrival
When we do find a policy, it is usually one to two pages, clearly assembled in an afternoon, and composed almost entirely of prohibitions. Do not enter confidential data. Do not rely on AI output. Do not use unapproved tools. Every statement is defensible and the document as a whole is nearly useless.
The problem is not length. A short policy that was thought about carefully beats a long one nobody reads. The problem is that a list of prohibitions answers only half of the question an employee actually has. They do not want to know what is forbidden in the abstract; they want to know whether the specific thing they are about to do is acceptable. A policy that never describes good use forces every employee to make that judgment alone, which is precisely the situation the policy was supposed to eliminate.
A policy that only prohibits tells your staff you were worried. A policy that also permits tells them what to do instead.
The second failure is generality. Policies are written in categories — "confidential information," "sensitive data," "unapproved applications" — because categories feel comprehensive and are faster to write. But employees do not experience their work as categories. They experience it as a specific document in front of them and a specific tool open in another tab.
Describe good use, not only prohibited use
The most valuable section of a policy is the one most organizations omit entirely: a plain description of what productive, sanctioned AI use looks like in your business. This does more work than any prohibition, for three reasons. It gives staff a safe default, so the cautious ones stop avoiding tools that would help them. It sets a reference point, so novel situations can be reasoned about by analogy. And it signals that the organization intends to use AI rather than merely survive it, which determines whether people bring their usage into the open or keep it hidden.
Write this section with real examples from your own operations. Drafting a first pass of a client update, summarizing a long thread before a meeting, restructuring a document you wrote, generating test data, explaining an unfamiliar contract clause in plain language. The more it reads like your actual week, the more it gets used.
Name specific applications and specific use cases
This is the difference between a policy that changes behavior and one that decorates a shared drive. Do not write "approved AI tools may be used for appropriate business purposes." Name the tools. State what each one is approved for, and what class of information may go into it.
The distinction that matters most is rarely the tool itself but the tier and configuration you are using. The same vendor's consumer product and enterprise product can have opposite data handling defaults. A policy that says "you may use this assistant" without specifying which account, on which plan, under which settings, has not actually said anything.
| Situation | Vague policy language | Actionable policy language |
|---|---|---|
| Client documents | Do not upload confidential information to AI tools. | Client files may be used only in the approved enterprise workspace where training on our data is disabled. Never paste them into a consumer chatbot or a browser extension. |
| Drafting outbound email | Use AI responsibly for communications. | Approved for first drafts using information already public or internal. A human sends the final version, and any factual claim is verified before it leaves. |
| Meeting recordings | Recording tools must be used appropriately. | Transcription is approved for internal meetings using the approved tool. External meetings require consent from all parties before an AI notetaker joins. |
| Code and configuration | Protect intellectual property. | Proprietary source, credentials, keys, and infrastructure configuration may not be entered into any general-purpose assistant, on any plan. |
| New tool someone found | Only approved tools may be used. | Submit it through the request form. You will get an answer within five business days. Until then, do not use it with anything beyond public information. |
Classify data in three tiers, not seven
Data classification schemes fail when they are too elaborate to recall under time pressure. Three tiers is usually the practical maximum: information that is already public, information that is internal but not sensitive, and information that would cause real harm if it left. Map each tier to which tools may handle it and stop there. If your industry imposes specific categories — patient records, cardholder data, client files under privilege — call those out explicitly by name rather than trusting a tier label to cover them.
The test for this section is whether an employee can recite the rule from memory. If they have to open the document to check, they will guess instead.
The section almost everyone leaves out
Employees will find useful AI tools faster than any review process can evaluate them. This is not a discipline problem; it is a rate problem, and it will not slow down. If your policy has no path for someone to say "I found something that would help me, may I use it?", you have guaranteed one of two outcomes: they do not use it and you lose the benefit, or they use it anyway and you lose the visibility.
A workable request process needs three things, and the third is the one that gets dropped.
- 01A submission path that takes minutes. A short form or a single named person. If requesting permission is more work than quietly proceeding, people quietly proceed.
- 02Stated review criteria. Whether the vendor trains on inputs, whether an enterprise tier disables that, where data is stored, what the tool integrates with, and what permissions it requests.
- 03A deadline you actually honor. Five to ten business days, in writing. An open-ended review is functionally a denial, and staff learn to route around it. This is the commitment most policies avoid making, and it is the one that determines whether the policy works.
Without a request workflow, a policy does not prevent shadow AI. It causes it.
Set a review cadence, because the tools change monthly
An AI policy written eighteen months ago is describing a market that no longer exists. Capabilities that did not exist then are now default features, and settings that mattered then have been renamed or removed. Put the policy on a schedule — twice a year is a reasonable floor — and name one person who owns it. A policy with no named owner does not get updated, and a stale policy carries a particular risk: staff who follow it believe they are compliant when they are not.
What to do about the usage that already happened
Since most organizations write their first policy well after adoption, you will need to address a period of undocumented use. Handle it as a no-blame inventory. Ask people which tools they have been using and what they put into them, state plainly that the goal is to understand exposure rather than to discipline anyone, and mean it.
This works only if the amnesty is genuine. The first time someone is penalized for an honest disclosure, you lose the visibility permanently and you will not get it back. If the inventory surfaces something serious — regulated data in a consumer tool, proprietary material in a product that trains on inputs — that is a specific remediation to work through, not a reason to make an example of the person who told you.
A structure you can write this week
A first version does not need legal review to be worth having. It needs to cover the highest-risk activities and be short enough that people finish reading it. Ten minutes is a good target.
Free resource
We have written the version of this we use ourselves — eleven pages, ten sections, with suggested language for each and a note on the judgment call you actually have to make. It is free, and it is the whole document rather than a preview.
Get the AI Acceptable Use Policy Framework- Purpose and scope — who it covers, including contractors and anyone handling your data.
- Definitions — what counts as an AI tool. Be broad: assistants, notetakers, browser extensions, and AI features inside software you already own.
- Approved tools — named, with the tier and what each is approved for. Expect to revise this often.
- Good use — concrete examples from your operations.
- Prohibited use — specific data types and specific tool categories, not abstractions.
- Data handling — your three tiers mapped to tools, with any regulated categories named explicitly.
- Request workflow — how to ask, the criteria, and the deadline.
- Verification expectations — who is accountable for AI-assisted output before it leaves the organization.
- Oversight and reporting — how issues are raised and who reviews them.
- Acknowledgment — a signature, which is what makes it enforceable later.
Do not ban everything by default
The most common overcorrection, particularly from organizations that have just had a scare, is a blanket prohibition. It reliably fails. Staff who have found genuine value in these tools do not stop using them; they stop telling you. You have converted a governance problem you could see into one you cannot, and you have given up the ability to steer usage toward tools you have actually vetted.
The objective is not to eliminate AI use. It is to make the sanctioned path the easiest one available.
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Occasional notes on AI governance, adoption, and what we are seeing in client work. No newsletter cadence, no sequence — we write when we have something useful.
Next step
Write the policy before the next tool gets bought.
If you want a second opinion on a draft, or you would rather start from something that already reflects how your business works, we can help. We will also tell you if what you have is fine.
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