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Why You Need an AI Workplace Policy and How to Create One

Every organization needs an AI workplace policy — even if you don’t think your employees use AI. Learn how to create an AI policy and what to include.

ActivTrak

By ActivTrak

An ai robot hand and a human hand agreeing and signing an ai workplace policy.

There’s no question artificial intelligence (AI) offers tremendous business benefits. AI tools help teams save time, reduce errors and respond to change faster.

But they also introduce risk.

That’s why creating an AI workplace policy is a must. As AI continues to reshape various aspects of modern work, you need a guiding framework — one that clearly communicates what it means to use AI effectively. In this article, we explore the importance of AI in the workplace, the need for a structured policy and the key steps for creating one.

How AI is used in the workplace today

Ready or not, your employees will use AI at work. True, adoption is still relatively slow. In a recent Gallup poll, only a third of employees say their organization is integrating AI into business practices. One survey found 75% of workers lack confidence in using AI. Another found 58% of workers are yet to use it at work. But…

Those trends are changing.

For example, consider generative AI. Employees are three times more likely to be using gen AI today than their leaders imagine. And 70% believe it will transform at least 30% of their work within two years. 

However, most employees are learning how to use various AI tools on their own — without guidance or oversight:

The sooner you develop an AI policy, the better positioned you’ll be to ensure safe, efficient use as AI technologies inevitably find a way into your workplace.

Why consider an AI workplace policy

As business leaders and employees increasingly rely on AI, creating a structured workplace policy is vital. The need for such a policy cannot be overstated — it serves as a safeguard for both the organization and employees. More specifically, you need an AI workplace policy to:

1. Reduce risk

Many employees don’t know when AI tools put sensitive information and intellectual property at risk. For example, employees who use DeepSeek may unknowingly share company secrets with Chinese state-sponsored attack groups. Creating clear rules around which tools are allowed and which are banned (and why) helps ensure AI usage doesn’t put your organization’s data and reputation at risk.

2. Encourage proper use

Many employees want to use AI to save time and improve performance. But they don’t know where to start. A strong policy arms them with the right resources and knowledge so they know how and when to use AI.

3. Ensure ethical AI use

AI generated content is only as good as the data employees provide. Your AI workplace policy helps ensure teams don’t inadvertently reinforce existing biases or generate misleading information. Accuracy, transparency and accountability are all essential components of ethical AI use. Organization guidelines free employees from having to use guesses or gut instinct in each of these areas.

4. Maintain quality

AI offers time-saving benefits in many areas of work — but not all. After all, using AI to analyze large amounts of raw data is helpful. But cut and paste that analysis into a report without conducting any editing or fact checking, and you have a recipe for misinformation. Outlining quality guidelines helps prevent scenarios like this, which inevitably lead to reputational damage and backlash from customers. 

How to create an effective AI workplace policy in 4 steps

Creating an effective AI workplace policy involves several strategic steps to ensure you address the needs of both the organization and your employees.

1. Identify your AI goals

First, identify the specific needs and goals of your organization. Will AI save time and resources? Increase competitiveness? Enhance innovation? Then conduct an app usage audit to learn how teams currently use AI and understand what might change in the future. This helps set the stage for the “why” behind your policy. Clearly defining what your organization seeks to achieve with AI makes it easier to align your policy with the overall business strategy.

2. Seek AI policy input 

Next, invite stakeholders to participate in the policy creation process. HR representatives, IT specialists, legal advisors and employees across various levels and departments all offer unique perspectives. A collaborative approach encourages diverse viewpoints, increases buy-in and helps ensure compliance from all employees. This inclusivity also fosters a sense of ownership, ensuring your policy reflects the values of the people most likely to use AI in everyday work.

3. Draft and communicate your policy

Once you’ve identified goals and gathered input, it’s time to turn that information into an official AI workplace policy. No, you don’t know how employees will use AI in the future — and that’s OK. Use what you know today to spell out expectations for AI app usage, data privacy, transparency and quality assurance moving forward. Once your initial policy is ready, announce it to your workforce and make it easy to access.

4. Regularly update and review

AI tools are constantly evolving, and your policy should too. Commit to regularly reviewing and updating your guidelines to ensure they reflect technological advancements, legal changes and evolving business needs. Keeping your policy up-to-date helps ensure your organization not only remains agile but also stays compliant and secure.

What to include in your AI workplace policy

The effectiveness of your AI workplace guidelines hinge on several key elements. Each one ensures a policy that’s practical, enforceable and aligned with organizational values:

  • Purpose: Explain why you’re introducing an AI workplace policy. This could be as simple as letting employees know you're establishing official guidelines for appropriate, ethical use of AI tools.
  • Scope: Make it clear who’s expected to follow your policy. Does it apply to all employees? Contractors? Third-party vendors? Include a detailed list to avoid questions or conflicts later.
  • Definitions: Think of this section as a glossary for anyone who’s new to AI in the workplace. Include clear, easy-to-understand definitions of various AI tools and components such as algorithms, language models, chatbots, GenAI and algorithmic AI.
  • Guidelines: This is the “meat” of your policy. Include lists of approved and banned AI apps, create specific do’s and don’ts and set standards for the adoption of new tools.
  • Training: Explain any training you expect employees, contractors and vendors to participate in — whether it’s to learn specific technology or understand overall AI benefits and risks.
  • Contact information: Let employees and contractors know who to contact with questions or concerns.
  • Violations: Explain what disciplinary action the organization will take if someone violates the policy. The consequences vary from company to company, although some businesses go as far as stating AI workplace policy violations will result in disciplinary action up to and including termination.
  • Disclaimer: Explain what your policy does not include. For example, some organizations clearly state their AI guidelines are not intended to interfere with employee rights under federal or state law.
  • Acknowledgement: Include a section for capturing signatures and dates. It's important to document employee acceptance of your policy, should issues arise in the future. 

Monitor and enforce AI workplace policy with ActivTrak

Ready to create an AI policy for your organization? ActivTrak makes it easy! With dashboards built to track AI app usage, you’ll see exactly when and how people use various tools. In fact, thousands of companies use ActivTrak’s employee monitoring software for this very reason:

  • Analyze current AI usage to create the right guidelines for your workforce
  • Learn which apps fuel productivity (and which harm it)
  • Automatically block high-risk AI apps

Get started today with a free account, or schedule a demo for a behind-the-scenes look at advanced AI app usage features.

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ActivTrak

ActivTrak helps organizations make data-driven decisions to improve hybrid work. Our workforce analytics platform provides visibility that improves team productivity and performance, ensures compliance with policies and expectations, and informs allocation of wo... Read more

ActivTrak helps organizations make data-driven decisions to improve hybrid work. Our workforce analytics platform provides visibility that improves team productivity and performance, ensures compliance with policies and expectations, and informs allocation of workforce investments.

 

More than 9,500 customers trust ActivTrak’s unique privacy-first approach and award-winning technology which has been recognized by the Deloitte Technology Fast 500, Inc. 5000 and G2 ‘Best Of’ category awards. ActivTrak is backed by Elsewhere Partners and Sapphire Ventures.

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