Creating an AI Policy for Your Small Business: Key Factors to Consider

Artificial intelligence (AI) is transforming how small businesses operate — from customer service chatbots to automating administrative tasks. But with opportunity comes responsibility. If your company is using or plans to use AI tools, it's critical to have a clear AI policy in place to protect your business, your team, and your customers. Here are some key factors to consider when creating an AI policy for your small business: 1. Define Your Company’s AI Stance Before creating detailed rules, decide how progressive or cautious your business wants to be with AI adoption. Generally, companies fall into one of four categories: Progressive: Encourages widespread AI use across teams with innovation at the forefront. Moderate: Supports AI use in specific, defined areas while maintaining human oversight. Cautious: Limits AI use to low-risk tasks (e.g., scheduling help, data summaries) and requires leadership approval for anything else. Restrictive: Prohibits most AI use e...