Generative AI tools are already part of daily work at most companies, whether management has approved them or not. Employees use them to draft emails, write code, summarise documents and analyse data. That brings real productivity gains — and real risk if it happens without rules. A short, clear acceptable use policy is the simplest way to capture the benefits while protecting your business. This guide explains the risks and what a good policy should cover.
Why you need a policy
Without guidance, well-meaning staff make decisions that expose the company. They paste confidential information into public tools, rely on inaccurate output, or create content that raises copyright or data-protection questions. A policy sets shared expectations, reduces the chance of a costly mistake, and shows regulators and customers that you take AI governance seriously.
The main risks to address
Confidential data and leakage
Anything typed into a public AI tool may leave your control and, depending on the service, be used to train future models. Client data, trade secrets, source code and personal data all need protection.
Accuracy and over-reliance
Generative AI can produce confident but wrong answers. Staff who treat output as fact — in legal, financial or technical work — can cause serious harm. Human review is essential.
Data protection and the GDPR
Feeding personal data into AI tools is a processing activity that must have a lawful basis and meet GDPR requirements. Some uses may call for a data protection impact assessment.
Intellectual property
The ownership and copyright status of AI-generated material can be uncertain, and AI output may inadvertently reproduce protected content. Both cut in on the value and safety of what your team produces.
Bias and fairness
Using AI in decisions about people — hiring, for example — can introduce discrimination and may trigger obligations under the EU AI Act.
What to include in the policy
A practical policy should name which tools are approved and for what purposes; state clearly what data must never be entered into a public tool; and require that AI output be reviewed by a competent person before it is relied on or published. It should address disclosure where customers or colleagues have a right to know AI was used, set expectations for record-keeping, and explain how the rules connect to your existing confidentiality, data-protection and IT policies. Crucially, it should be short enough that people actually read it.
Do not forget AI literacy
The EU AI Act expects organisations that use AI to ensure staff have a sufficient level of AI literacy. A policy backed by brief, role-appropriate training helps meet that expectation and makes the rules stick in practice.
Making it work
A policy on paper changes nothing on its own. Communicate it clearly, give staff a route to ask questions and request new tools, and review it regularly as the technology and the law evolve. Enforcement should be proportionate and consistent, tied into your normal disciplinary and data-governance frameworks.
How Lawgent can help
Lawgent helps businesses draft practical AI usage policies that fit how their teams actually work while meeting GDPR and AI Act obligations. Get in touch to put clear, defensible rules in place for your organisation.
