AI tools offer a multitude of potential benefits in the workplace. They can also create significant legal, privacy, and cybersecurity risk if not properly managed. Adopting an employee AI Acceptable Use Policy can help manage that risk.
Below are five key reasons why HR professionals and in-house counsel should prioritize the development of an AI Acceptable Use Policy.
- Control Which AI Tools Employees May Use
One of the most significant risks accompanying workplace AI adoption is the use of unauthorized, publicly available AI tools by employees to perform work-related tasks. When employees input company information into unapproved AI platforms, organizations may inadvertently expose confidential, proprietary, personal, or regulated data to third parties, creating significant privacy, cybersecurity, and compliance risks.
To mitigate these risks, a clear AI Acceptable Use Policy will identify approved, organization-vetted AI tools and expressly prohibit the use of unauthorized AI applications for business purposes. Requiring employees to use only approved platforms helps ensure that AI solutions undergo appropriate review by legal, information security, privacy, compliance, and IT stakeholders before deployment.
- Promote Compliance with Privacy, Intellectual Property, and Employment Laws
Employees’ use of AI tools can create a range of legal and compliance risks if not properly governed. For example, employees may inadvertently upload copyrighted materials, disclose employee personal information or confidential business data, record or monitor individuals without appropriate notice or consent, or rely on AI-generated output that is inaccurate, biased, or discriminatory. These activities can expose employers to potential liability under privacy, intellectual property, employment, and anti-discrimination laws, as well as sector-specific regulatory requirements.
To mitigate these risks, a comprehensive AI Acceptable Use Policy will clearly define both permitted and prohibited uses of AI tools. It will also establish categories of information that may or may not be entered into AI systems, set parameters for the appropriate use of AI-generated content, and require human review of AI outputs before they are relied upon for business decisions. Employers should also consider incorporating requirements for use case risk assessments, approval processes, and ongoing monitoring to help ensure that AI tools are used responsibly, consistently, and in compliance with applicable legal and regulatory obligations.
- Prevent Cybersecurity Risks
AI tools can interact with an organization’s systems, business processes, and data assets including, in some cases, confidential, proprietary, or personal information. As with any new technology, the use of an AI tool can introduce additional cybersecurity, privacy, and data governance risks if appropriate safeguards are not in place. For example, AI applications may increase the risk of data leakage, unauthorized disclosure of sensitive information, inadequate employee access controls, or security vulnerabilities arising from improper configuration or integration with existing systems.
An AI Acceptable Use Policy will establish clear governance standards governing the acquisition and use of AI technologies by setting forth requirements for the evaluation, approval, and secure use. The policy should reinforce compliance with existing cybersecurity policies and controls.
- Reinforce Existing Corporate Policies and Standards of Conduct
Employees’ use of AI tools should be governed by the same standards and expectations that apply to all workplace conduct, including the organization’s Code of Conduct, information security policies, confidentiality obligations, and anti-harassment and equal employment opportunity policies.
Providing employees with clear guidance on acceptable and prohibited uses of AI tools can help mitigate the risk of conduct that creates legal, compliance, or reputational exposure. For example, employers may wish to prohibit the use of AI tools to generate deepfakes or other deceptive synthetic media, impersonate colleagues, customers, or business partners, create discriminatory, harassing, or otherwise inappropriate communications, or engage in unauthorized business activities. Establishing clear guardrails can help reduce the likelihood that AI tools will be used in ways that violate workplace policies or applicable law.
- Establish Clear Accountability and AI Governance
Effective AI governance requires more than identifying acceptable uses. An AI Acceptable Use Policy will also promote accountability. In addition to defining expectations for employee conduct, the policy should address the consequences of noncompliance and identify the individuals or functions responsible for overseeing implementation, training, and ongoing compliance.
Assigning clear ownership of AI governance helps ensure that AI-related risks are appropriately managed and that the organization’s use of AI remains aligned with its legal obligations, ethical standards, and business objectives.
Conclusion
HR professionals and in-house counsel play a key role in ensuring that organizations integrate and use AI tools in the workplace in a responsible and consistent manner. A well-crafted policy can serve as a critical governance tool, reducing enterprise risk while enabling employees to leverage AI tools in a secure and compliant manner.
Employers should also consider implementing training programs to educate employees on appropriate use and risks associated with AI tools. Ongoing training and monitoring can help reinforce policy requirements and promote consistent, compliant use of AI tools across the organization.
Jackson Lewis attorneys are available to assist employers with questions regarding AI governance, privacy, and cybersecurity in the workplace.
This article is for informational purposes only and does not constitute legal advice. Organizations should consult legal counsel regarding the development of AI governance policies tailored to their specific operations and regulatory obligations.
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