What Is an AI Policy and Why Does Your Organization Need It?

Whether or not your organization plans to use artificial intelligence (AI) tools, establishing AI policies is critical. An AI policy for an organization will help minimize risk and set clear expectations for employees on what AI use is acceptable and what is not. Since the public launch of ChatGPT in 2022, AI technology has developed at an explosive pace. Chances are, employees are already using it or will soon, and any use of AI puts the organization at risk. A well-defined AI policy ensures everyone understands the boundaries, responsibilities and appropriate contexts for AI use in your workplace.

 

What Is an AI Policy?

AI policies serve as a guiding framework that outlines the principles and procedures governing the development, deployment and use of AI technology within the organization. Crafted to align with legal requirements, ethical standards and organizational values, these policies ensure that AI is used responsibly and transparently. Essentially, it’s a set of rules for how employees can and cannot use AI tools in their work. It promotes accountability and safeguards the organization.

Key Components of an AI Policy:

• Introduction and purpose clarifying the organization’s viewpoint on AI technology and outlining the objectives of the policy.
• Scope defines the types of AI systems and applications covered by the policy, as well as defining tools that are restricted or require prior approval.
• Definitions are crucial for ensuring clear understanding of terminology across the organization.
• Policies and procedures provide specific guidelines on how AI systems should be developed, deployed and used within the organization. Since the policy cannot define every instance of proper use, these policies can include general guidelines and should be updated as the environment changes.
• Management and oversight identify the roles and responsibilities related to AI governance, including oversight, monitoring and risk management.
• Accountability and non-compliance reporting not only hold individuals and organizations responsible for the use of AI but also encourage employees to report violations or concerns without fear of reprisal.

Having an AI policy in an organization ensures the responsible use of technology and supports compliance with legal and ethical standards. They promote consistent behavior and prevent unintended consequences. In addition, AI policies can help organizations identify, assess and mitigate potential risks associated with AI. This includes bias, privacy violations and security breaches and can serve as a foundation for educating employees about AI, its potential, and its ethical implications.

Important Guidelines and Principles in an AI Policy:

• Acceptable use policies clearly outline what is and is not allowed when using AI tools, such as for research, data analysis and materials content.
• Data privacy policies protect the privacy of individuals whose data is used in AI systems, ensuring compliance with data protection laws. Feeding private data into a publicly available tool means that the data becomes public, posing security and privacy risks.
• Ethical guidelines ensure that AI usage upholds principles of informed consent, integrity, appropriateness and respect for privacy. Organizations may also incorporate fairness, accountability and transparency principles into their ethical guidelines to promote responsible AI development and deployment.
• Compliance and legal policies help organizations align their AI practices with relevant laws and regulations. AI has developed so fast that regulation and legal implications questions continue to lag, requiring these policies to continually develop as they emerge.
• Bias policy and fact-checking guidelines reinforce that AI is only data and algorithms, not intelligence. That means AI can and does offer false, partially incorrect or biased information. It is up to users to verify the output. Even privately developed AI can make mistakes due to a bad batch of data or a programming error. An AI policy will include checks and balances policies to catch issues and minimize damage.

In summary, in the current technological environment, an AI policy is a crucial tool for organizations to navigate the complex landscape of AI. It ensures that AI is used responsibly, ethically and in a way that benefits both the organization and society. A policy makes goals, expectations and behaviors clear for the organization while mitigating risks related to inaccuracy, security, privacy and legal action, setting the organization up for success now and into the future. If you have any questions on putting a policy in place, contact us. The team at Dannible & McKee is here to assist you.

 

Contributing author: Lori A. Beirman is the director of audit quality at Dannible & McKee, LLP. She has over 24 years of experience in audit, reviews and compilations in a variety of industries, such as construction, manufacturing and professional service firms. She also specializes in data analytics and fraud.  For more information on this topic, you may contact Lori at lbeirman@dmcpas.com or (315) 472-9127.