AI glossary for businesses
AI usage policy
In short
An AI usage policy is a short internal document that tells staff which AI tools they may use, for which tasks, with which data, and how to check the results. It turns general principles into clear do's and don'ts. It is one of the simplest ways to reduce data leaks, errors and legal risk when a team starts using AI.
How an AI usage policy works
A policy works like the house rules in a shared office kitchen. Everyone can cook, but the rules say what goes in the fridge, what must be labelled and who cleans up. Without them, problems pile up quietly until someone gets sick.
A practical policy for an SME fits on one or two pages and covers:
Approved tools: for example, the business version of ChatGPT or Microsoft 365 Copilot, and a clear line on personal accounts for work.
Data rules: what must never go into an AI tool, such as customer personal data, health data, passwords or confidential contracts, unless the tool is approved for it.
Checking output: a person reviews facts, numbers and tone before anything reaches a customer or is published. AI can produce confident errors, known as hallucinations.
Transparency: when to tell customers that content or replies come from AI.
Responsibility: who approves new tools and who staff ask when unsure.
In practice for a small business
A 15-person marketing agency in Athens notices staff using five different AI tools, some on free personal accounts. The owner writes a one-page policy: two approved tools on business plans, no client data in prompts unless anonymised, every client deliverable checked by a person, and a monthly 30-minute session to share good prompts. The policy becomes part of onboarding for new hires. The guide to ChatGPT and Copilot at work under GDPR explains the data points in more detail.
Why it matters and what to watch out for
Banning rarely works. If the policy forbids everything, people use AI anyway, out of sight. Offer safe options instead.
It supports legal duties. A clear policy, plus training, helps with the EU AI Act's AI literacy duty and with GDPR. It does not replace either.
Keep it alive. Tools and terms change. Review the policy every six to twelve months.
Make it readable. Plain language and examples beat legal wording. Staff should understand it in five minutes.
Not legal advice. Have your DPO or legal advisor review the data rules.