How to Write an AI Acceptable Use Policy for Your Company

Your employees are already using AI tools. The sections of a short, workable AI usage policy, a sample data classification table and the most common mistakes.

If you're wondering whether your employees use AI tools, the answer is almost certainly yes. The real question is whether they do so within rules the organisation knows about and approves, or without any oversight. An AI usage policy is the first and cheapest step to remove that uncertainty.

A good policy doesn't scare employees away from AI. On the contrary, by making clear what is allowed, it encourages safe use.

The sections of the policy

1. Purpose and scope

State why the policy exists (productivity and risk management) and who it covers: all employees, interns, consultants and suppliers working on the organisation's behalf.

2. Approved tools

List the AI tools that may be used and which versions (e.g. enterprise accounts). Define an approval process for tools not on the list. Banning tools without offering a safe alternative only increases shadow AI.

3. Data classification: which data, which tool?

This is the heart of the policy. A simple table makes decisions easy for employees:

Data type Examples General tools Approved enterprise tools
Public Website content, published reports ✅ Allowed ✅ Allowed
Internal Internal procedures, meeting notes ❌ Not allowed ✅ Allowed
Confidential Contracts, prices, strategy, source code ❌ Not allowed ⚠️ Approved use cases only
Personal data Customer and employee information ❌ Not allowed ⚠️ Legal approval required
Special category data Health, biometric data ❌ Not allowed ❌ Not allowed (without special approval)

4. Prohibited uses

List explicitly prohibited uses, for example:

  • Making automated decisions about people with AI (hiring, credit, disciplinary action)
  • Giving AI output to customers or the public without verification
  • Creating content that impersonates others (deepfakes)
  • Granting unapproved AI tools access to corporate systems

5. Verifying output and accountability

The person who uses AI output is responsible for it. Figures, sources, legal references and names must always be checked.

6. Transparency

State that people interacting directly with AI systems (e.g. chat assistants) must be told they are dealing with AI. The EU AI Act's transparency obligations apply from August 2026, which makes this section especially important for organisations serving the EU.

7. Approving new tools and use cases

Define how new tools or use cases are approved: who applies, who reviews (IT, information security, legal), and which criteria apply (where data is processed, model-training terms, access control).

8. Training

Make a short safe-use training mandatory so the policy doesn't stay on paper.

9. Incident reporting

Explain what to do and whom to notify if personal or confidential data is shared by mistake. Personal data breaches can trigger time-bound notification obligations under data protection law, so fast reporting is critical.

10. Review

AI tools and regulation change fast. Review the policy at least every six months.

Common mistakes

  • Long, legalistic language: nobody reads a 20-page policy. Keep the main policy to 2–3 pages; details can go in annexes.
  • Only a list of bans: a policy that doesn't say what's allowed either drives people away from AI or gets ignored.
  • Banning without providing tools: without a safe enterprise tool, employees turn to personal accounts.
  • Policy without training: emailing a policy doesn't mean it's understood.

A policy is the first step of governance

The usage policy is the starting point of broader AI governance. The usual next steps are to inventory the AI systems in use, classify them by risk and define additional controls for high-risk systems.

Through our AI Governance & Compliance service we build your usage policy, inventory and risk classification together. To make sure employees actually adopt the policy, we recommend our Using Generative AI Safely programme.


Sources

Free assessment related to this article · 2 min

GenAI Usage Risk Assessment

Assess the risks of generative AI use in your organisation with 10 controls: policy, data protection, training and shadow AI.

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AI Acceptable Use Policy Template

A free AI acceptable use policy template you can adapt: approved tools, data classification, prohibited uses, data protection and approval process. Download as Word.

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Çağrı Aksu
Çağrı AksuFounder, MLTeam

20+ years in AI and data science. About →

Frequently Asked Questions

How long should an AI usage policy be?

The main policy shouldn't exceed 2–3 pages. Detailed rules, the approved tools list and the data classification table can go in annexes.

What must the policy include?

Purpose and scope, approved tools, data classification, prohibited uses, output verification and accountability, transparency, a new-tool approval process, training, incident reporting and a review cycle.

Is it right to ban AI tools completely?

Bans without a safe alternative usually increase shadow AI. A policy that also states what is allowed is more effective.

How often should the policy be updated?

Because AI tools and regulation change quickly, review it at least every six months.

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