What Internal Policies Should I Update to Reflect AI Use in My Business?

Summarise with: ChatGPT Claude Perplexity Microsoft Copilot

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Table of Contents

• AI Usage Policy 
• Data Privacy and Security Policies 
• Risk Management Policies and Contingency Plans
• Key Takeaways 

It is no secret that there has been a rapid rise in the use of artificial intelligence (AI) technologies by businesses to improve efficiency, enhance decision-making and stay competitive. However, you must ensure your internal policies are updated to reflect the responsible use of AI in your business. You should also implement a general AI Usage Policy, which sets out restrictions on the use of AI in your business. 

AI Usage Policy 

An AI Usage Policy should set out any guidelines for the responsible and secure use of any generative AI technology, such as ChatGPT, which simulates or involves human intelligence processes to generate text, images or other media in response to prompts. 

The policy should outline restrictions, including that users cannot use AI technology in a manner that would cause your business to breach any of its legal obligations, such as: 

• privacy laws;
• copyright laws; 
• work health and safety laws; or
• contractual obligations, including confidentiality and privacy clauses. 

Your AI Usage Policy should also set out guidelines around the ethical use of AI in your business to align with your business values and ethical standards. Some examples include: 

• outlining principles for the ethical use of data, such as avoiding the use of sensitive information without explicit consent; 
• ensuring AI algorithms are designed to be fair and unbiased and implement processes to audit and mitigate any biases in AI systems regularly; 
• encouraging transparency in any AI decision-making processes so that stakeholders can understand how AI arrives at its conclusions; 
• defining roles and responsibilities within your business for overseeing AI systems and addressing any ethical concerns; and
• ensuring AI practices align with any applicable ethical guidelines and industry best practices.

There must be human oversight over the use of AI. Furthermore, your policy should:

• place obligations on your employees and other personnel to verify any inputs of AI tools;
• label any AI-generated work as AI-generated; and 
• use independent judgement and not solely rely on AI to make business decisions. 

Furthermore, ensure your policy clearly states any disciplinary action for breach of the policy.

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Data Privacy and Security Policies 

As AI relies heavily on data, you may need to review and update your data privacy and security policies to address how you are collecting, storing and using personal information and updating any relevant internal safeguards around data protection and security. This also includes obtaining customer consent when AI is involved in any processing of personal information or sensitive information.

Risk Management Policies and Contingency Plans

AI introduces new risks and uncertainties. Accordingly, ensure you review and update any risk management policies to address risk assessments in relation to AI and strategies to mitigate AI-related risks. Additionally, ensure that your contingency plans, including any data breach response plans, are updated to reflect any use of AI. You should have adequate procedures in place for reporting AI-related incidents and responding promptly to address any AI-related issues.

Key Takeaways 

Integrating AI into your business can have a serious payoff. However, it also requires that you adequately manage your risk. Furthermore, you must implement clear guidelines and restrictions surrounding the use of AI in your business. AI technology and regulations are constantly evolving. Thus, it is essential to revisit and update any policies related to AI regularly.

If you need any assistance with drafting or updating any of your internal business policies to reflect your use of AI, our experienced artificial intelligence lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.