Free template
Free AI Usage Policy Template for Small Businesses
A plain-English, two-page policy that tells your team which AI tools they can use, what information must stay out of them, and who is responsible for checking AI output. Download it as a Word document and adapt it in an afternoon.
What's included
- Approved tools and how to request new ones
- A clear list of information that must never go into AI tools
- Acceptable uses, with everyday examples
- Human review, transparency and account security rules
- How to report mistakes, plus a staff acknowledgement
Preview the policy
Template for [Company Name]. Replace the [bracketed] fields and remove anything that does not apply. This template is a starting point, not legal advice; businesses in regulated industries should have it reviewed by an advisor.
1. Purpose
[Company Name] encourages the safe, effective use of artificial intelligence (AI) tools to help us work better. This policy explains which AI tools may be used, what information must be protected, and who is responsible for work that AI helps produce.
2. Who and what this policy covers
This policy applies to all employees, contractors and anyone else who does work for [Company Name]. It covers any AI tool used for company work, including chat assistants, writing and image tools, meeting note-takers, and AI features built into other software such as email, documents, CRM or accounting systems.
3. Approved AI tools
Only the following AI tools may be used for company work, and only through company-provided accounts:
- [Tool name, e.g. Microsoft 365 Copilot] — approved for [uses]
- [Tool name, e.g. ChatGPT Team / Enterprise] — approved for [uses]
- [Tool name] — approved for [uses]
To request a new tool, contact [Policy owner]. Do not use personal or free accounts for company work.
4. Information that must never be entered into AI tools
Unless a tool has been specifically approved for it in writing, never enter:
- Customer or employee personal information (names with contact details, addresses, dates of birth, ID numbers)
- Financial account details, payment card data, bank details or passwords
- Health, medical or other sensitive personal information
- Confidential contracts, pricing, legal matters or information covered by a non-disclosure agreement
- Source code, security settings or system credentials
- [Any other information specific to your business]
If you are unsure whether information is safe to use, remove identifying details first or ask [Policy owner].
5. Acceptable uses
Approved AI tools may be used for tasks such as:
- Drafting and editing emails, documents and marketing copy
- Summarizing meetings, long documents or public information
- Brainstorming ideas, outlines and options
- Analyzing data that contains no restricted information
- Reformatting, translating or checking the tone of your own writing
6. Human review and responsibility
AI tools can produce answers that sound confident but are wrong. You are responsible for anything AI helps you produce. Before sending, publishing or relying on AI-assisted work, check facts, figures, names, references and calculations. AI must not be the only basis for decisions about people, such as hiring, pay or discipline, or for legal, tax or financial advice to customers.
7. Transparency
Tell customers or colleagues when AI has been used in a way they would reasonably expect to know about, for example in customer-facing content that presents analysis or advice, in automated responses, or when AI is used to record or summarize a meeting. Ask permission before recording or transcribing a meeting with an AI tool.
8. Accounts, access and security
Use company-managed accounts for all approved AI tools, protected by the company's sign-in and multi-factor authentication. Do not connect AI tools to company email, files or systems without approval from [Policy owner]. Access is removed when someone leaves the company.
9. Intellectual property and copyright
Do not use AI tools to copy or closely imitate other people's copyrighted work, logos or brands. Work you create for [Company Name] with the help of AI belongs to [Company Name], as with any other work you produce for the company.
10. Questions and reporting problems
Questions about this policy go to [Policy owner, email]. If restricted information is entered into an AI tool by mistake, or an AI tool produces harmful or inappropriate output, report it to [Policy owner] right away so it can be dealt with. Reporting mistakes promptly will not be held against you.
11. Review
AI tools change quickly. [Policy owner] will review this policy at least every six months and whenever significant new AI tools or features are adopted.
Frequently Asked Questions
Is this AI usage policy template free?
Yes. Download the Word document, replace the bracketed fields, and adapt it to your business. No sign-up required.
Is the template legal advice?
No. It is a practical starting point written in plain English. Businesses in regulated industries such as healthcare, finance or legal should have it reviewed by their advisor.
How long should a small business AI policy be?
One to two pages is enough for most small businesses. The goal is a policy people actually read and follow: approved tools, off-limits data, human review and who to ask.
How often should we update our AI policy?
At least every six months, and whenever you adopt a new AI tool or AI features appear in software you already use.
Want help rolling out AI safely?
We can tailor the policy, set up approved tools and train your team, or start with an AI readiness assessment.