There’s no question artificial intelligence (AI) offers tremendous business benefits. AI-powered tools help teams save time, reduce errors and respond to change faster.
But they also introduce risk.
More than half of surveyed employees admit to making mistakes at work due to AI errors, and four in ten knowingly use it improperly. Many frequently upload sensitive information to publicly available AI tools, often without realizing the data security tradeoff.
In other words…
Building strong AI guidelines is no longer optional — it’s crucial. Human oversight is key to preventing data leaks, errors and misuse. But with tools evolving so quickly, it’s hard to know where to start.
ActivTrak is here to help. This guide serves as your crash course on the current state of AI in the workplace, plus step-by-step instructions for creating a clear, future-ready AI workplace policy.
How employees use AI in the workplace today
One thing is certain — your employees will use AI at work, whether you oversee it or not. AI usage in the workplace nearly doubled in just two years and continues to gain momentum. Human resources uses it to screen candidates, IT relies on it to detect cyberattacks, customer service leans on it to answer questions…and the list goes on.
From AI technologies that automate tasks to AI generated content for increased output, the growing collection of tools touch every aspect of business. Heck, many of the platforms in your current tech stack likely include built-in AI features — including productivity monitoring tools like ActivTrak.
The problem? Employees are learning how to use these AI tools on their own, without guidance or oversight:
- Nearly 30% of companies are yet to acknowledge AI in strategy, and only 12% offer training.
- More than half of surveyed employees report a clear lack of guidelines on AI tool usage.
- Among those who use Gen AI at work, 55% use unapproved tools — and 40% use actively banned tools.
Clearly, it’s time for a change.
Reasons businesses should consider an AI workplace policy
As employees increasingly rely on AI, creating a structured workplace policy is vital. You need an AI workplace policy to:
1. Reduce risk
AI introduces new kinds of legal, financial and operational risks. From data leaks and biased outputs to intellectual property exposure, the potential fallout reaches every corner of business.
However, many employees don’t realize when everyday AI tools put sensitive information in jeopardy. All it takes is a single upload to the wrong platform to expose proprietary data or violate compliance standards. In extreme cases, even seemingly legitimate tools — like DeepSeek — have been linked to foreign state-sponsored threat groups.
Establishing clear rules on which tools you approve, restrict or ban helps protect your organization’s data, reputation and bottom line.
2. Ensure compliance
AI laws and regulations are evolving faster than most organizations can track. The EU AI Act already sets a new standard for global oversight, while several U.S. states are drafting their own laws focused on data privacy, transparency and accountability. More legislation is on the way — and penalties for noncompliance continue to increase.
Waiting for clear direction from regulators leaves you one step behind. A proactive AI workplace policy helps you stay ahead of changing requirements by defining how your organization collects, stores and uses data. It also shows stakeholders you take responsible AI use seriously — not just as a legal obligation, but as a core part of ethical business practice.
3. Encourage proper use
Without clear guidance, employees experiment with AI in potentially dangerous ways. They use unapproved tools, rely on inaccurate outputs and treat AI as a shortcut instead of a support system. This unstructured use creates inconsistency, compliance risks and uneven productivity across teams.
A well-defined AI policy is your opportunity to establish standards for responsible use. It outlines which tools you approve, what data is appropriate to share and where human oversight is required. By setting expectations early, you help employees use AI with confidence — safely, ethically and effectively.
4. Establish ethical AI use
AI-generated content is only as good as the data that feeds it. Without careful oversight, it’s easy for teams to reinforce existing biases or produce misleading information — often without realizing it.
A thoughtful AI workplace policy helps ensure fairness, transparency and accountability at every step. It defines what ethical AI use looks like in practice and connects it to broader priorities like DEI, workplace culture and employee well-being.
Clear guidelines give employees confidence the technology they use aligns with company values. Instead of relying on guesswork or gut instinct, they have a framework for keeping work accurate, responsible and inclusive.
5. Maintain quality
AI amplifies whatever it’s given, which means small errors often snowball into major inaccuracies. While generative AI tools help teams analyze large data sets or draft first versions of content, they still require human judgment to maintain accuracy and context.
Think of it this way: Using AI to surface insights is valuable. Copying its analysis directly into reports without review is not. Permitting employees to do the latter is how misinformation spreads and credibility suffers.
Your AI policy is an opportunity to outline clear quality controls, from fact-checking and editing standards to review checkpoints, so employees know when to trust, verify or refine AI outputs. This consistent oversight keeps your business output strong and aligned with your brand reputation.
6. Build employee trust and engagement
Remember — AI is new for everyone. Your employees are still learning how these tools impact their roles and what they mean for the future of your workplace. A clear, transparent policy allows you to communicate your organization’s approach. It’s a way to convey how your leadership plans to use AI responsibly — not to replace people, but to support them.
A solid policy provides the transparency people need to see AI as a productivity partner instead of a threat. This sense of trust drives higher engagement, better adoption and a healthier culture overall.
How to create an effective AI workplace policy in 8 steps
Artificial intelligence is transforming how work gets done. But without clear guardrails, it’s easy for teams to quickly move in different directions. A well-defined AI workplace policy helps keep everyone aligned, ensuring AI supports your organization’s goals while protecting data, privacy and trust. Here’s how to build one step by step.
1. Identify your AI goals
Start by clarifying why you use AI. Tie your goals directly to business strategy, and explain how AI initiatives align to existing KPIs and OKRs — whether it’s improving efficiency, sparking innovation, enhancing customer experience or staying ahead of competitors.
As you outline goals, conduct an app usage audit to see which AI tools teams already use and how they fit into the bigger picture. Understanding your current landscape helps define the “why” behind your policy — and ensures every AI decision supports measurable outcomes.
2. Assemble a cross-functional team
AI touches every corner of your business, so don’t write your policy in a silo. Involve stakeholders from legal, IT, HR, compliance and operations to cover all angles, from ethics and data protection to employee experience and business continuity.
Think of your AI policy as a shared framework for how work happens. While IT might handle the technical safeguards, HR helps define behavioral expectations and legal ensures compliance. When everyone contributes, your policy addresses actual workplace needs.
3. Conduct an AI risk and impact assessment
Before drafting your policy, take stock of how teams already use AI. Identify tools employees rely on, assess their purpose and review how data flows between systems. Then evaluate each tool for potential risks, such as data privacy concerns, algorithmic bias or security vulnerabilities.
Ask whether these technologies truly support your business goals or create unnecessary exposure. The findings from this assessment will help you shape clear guidelines for what’s approved, what needs review and what’s off-limits.
4. Get feedback from employees and stakeholders
Your AI policy should be built with employees, not just for them. Gathering feedback from those who regularly use AI ensures your policy reflects real needs and use cases. Hold town halls, send quick surveys or form small working groups where employees voice questions or share concerns. Encourage managers and department heads to provide insights on how AI impacts workflows.
This kind of two-way communication builds trust, prevents blind spots and boosts adoption once your policy is live. It also makes employees feel included in shaping the future of work — not just adjusting to it.
5. Draft your policy with clear language
When you sit down to write, skip the legal jargon and focus on clarity. Define key terms like AI, machine learning and automation in plain language, and include real examples of acceptable and unacceptable use.
This step ensures everyone — from software engineers to marketers to customer support reps — understands what’s expected. The goal is to remove confusion, not add to it.
6. Finalize and communicate the policy
Once your draft is ready, align with leadership to ensure the tone from the top reinforces your AI goals and values. Then make the policy accessible by posting it to your internal wiki, introducing it during onboarding and hosting live Q&A sessions.
Consider assigning executive sponsors or departmental champions to keep the conversation active. Clear, consistent communication signals this isn’t just another compliance document — it’s a shared commitment to using AI responsibly and effectively.
7. Implement training and support programs
Even the best-written policy won’t stick without education and ongoing support. Create a training program to walk employees through safe, ethical AI practices and real-world examples. Something as simple as an easy-to-update presentation makes it easier to apply your policy when using implemented AI tools in new situations.
In addition to mandatory training, build a library of AI resources like FAQs and internal forums. These replace confusion with clarity on where, when and how to apply AI to everyday tasks. These touchpoints make your policy practical — not theoretical.
8. Regularly monitor, review and update
AI technology moves fast, and your policy should evolve right alongside it. Set a regular review cadence to revisit your guidelines and make updates based on new tools, regulations or company goals.
Assign ownership to a specific team to track changes, monitor usage and stay accountable. Keeping your policy current ensures your organization stays innovative, compliant and future-ready.
What to include in your AI workplace policy
The effectiveness of your AI workplace policy depends on how well it covers the essentials, from training to accountability. Each component helps create a policy that’s practical, enforceable and aligned with your company’s values. At a minimum, include details on your:
- Purpose: Start by explaining why the policy exists. Define the business reasons behind it, such as promoting ethical AI use, protecting data privacy, or ensuring responsible innovation. This ensures employees understand its importance from day one.
- Scope: Spell out exactly who the policy applies to. Include employees, contractors, consultants and third-party vendors to prevent confusion later and ensure everyone follows the same rules.
- Definitions: Make it easy for anyone to understand the terminology. Include clear, plain-language definitions of terms like AI, machine learning, automation, chatbots and generative AI so even non-technical readers know what’s covered.
- Core principles: Outline the guiding values behind your AI approach, such as fairness, transparency, accountability and respect for privacy. These principles set the tone for how your organization expects teams to adopt AI.
- Data governance: Describe how your organization collects, stores and protects personal information and other data used by AI systems. Address topics like consent, data retention, bias monitoring and compliance with applicable privacy regulations.
- Guidelines: This is the heart of your policy. List approved AI tools and use cases, highlight prohibited or restricted applications and define processes for evaluating and adopting new AI technologies.
- Employee responsibilities: Clarify what you expect from teams when using AI in clear, simple terms. Explain how you want employees to verify accuracy, avoid bias, safeguard sensitive data and follow ethical standards. This reinforces shared accountability.
- Employee rights: Outline employee rights related to AI use. For example, explain how AI-driven decisions affect performance reviews, promotions or workloads.
- Training and education: Explain how your organization will help employees use AI responsibly. Include details on required training programs, ongoing learning opportunities and where to find educational resources.
- Reporting and feedback: Provide clear channels for employees to report AI-related issues, such as suspected bias or data misuse. Encourage open communication to catch problems early and maintain trust.
- Violations and consequences: Outline what happens if someone violates your policy. Be transparent about any disciplinary actions, such as retraining or formal warnings, based on incident severity.
- Disclaimers: Clarify what your policy doesn’t cover or where it may evolve over time. For example, clearly state when your policy doesn’t override employee rights protected by law or collective agreements.
Monitor and enforce your AI workplace policy with ActivTrak
Creating an AI workplace policy is a smart first step — but maintaining visibility into how teams use AI brings your policy to life. To ensure responsible use and ongoing compliance, you need continuous insight into how AI fit into everyday work.
This is where ActivTrak comes in. Our workforce analytics software provides the visibility teams need to monitor AI app usage, identify potential misuse and reinforce safe, responsible adoption. It even supports training and compliance efforts by showing you which teams need guidance most.
Get started today with a free account, or schedule a demo for a behind-the-scenes look at advanced AI app usage features.
