Define approved and prohibited use

The policy should explain which AI tools are approved, what business purposes are allowed, which uses require additional review, and which activities are prohibited.

Protect sensitive information

Employees need clear rules for confidential information, personal data, credentials, regulated data, customer information, source code, and other sensitive content that should not be entered into unapproved AI services.

Require human accountability

AI-generated output should not automatically become a business decision. The policy should define where human validation, approval, or subject-matter review is required.

Create reporting and exception paths

Employees should know how to report AI incidents, policy concerns, unexpected behavior, and requests for new tools or exceptions.

What should be in an AI acceptable use policy?

An AI acceptable use policy should define approved and prohibited uses, sensitive-data handling, human review requirements, ownership, third-party AI expectations, incident reporting, and escalation paths. It should also explain how employees request approval for new AI tools or higher-risk use cases.

The policy works best when it is connected to the broader AI governance framework, including AI inventory, risk assessment, lifecycle decisions, monitoring, and evidence.

Practical takeaway: Use frameworks, assessments, and automation as tools to improve business outcomes—not as isolated compliance exercises.