If You're Using AI in Your Business, You Need a Policy. Here's Why.

I was recently talking with the CEO of a mid-sized firm who said,

“We’re starting to use AI across a few departments, but we haven’t put any guardrails in place yet. We trust our team.”

That trust is important, but it’s not a substitute for clarity. A week later, their marketing lead used a generative AI tool to draft campaign copy that borrowed a little too heavily from copyrighted material. It wasn’t intentional. But it happened.

That’s the moment most companies realize: they’re already using AI, and they need a policy to go with it.

Most SMBs are already in the game

Whether it’s marketing, ops, sales, or finance, AI tools are already showing up in your company through platforms, vendor tools, or employee experiments. Which means it’s time to get intentional.

You don’t need a legal team or a governance committee to start. You just need a simple, practical policy that gives your team confidence and reduces risk.

Why this matters

AI isn’t just a tool. It makes decisions, learns from data, and influences outcomes. And when it gets things wrong, whether through bias, hallucination, or misuse, the responsibility falls on you.

Without a policy:

• Employees make judgment calls on what’s okay
• Sensitive data might end up in public tools
• There’s no clear process for escalation or accountability
• Your customers and partners may lose trust

A policy is how you get ahead of that. It’s not about slowing things down. It’s about moving forward safely and with purpose.

Common AI policy myths (and what’s actually true)

Here’s what I often hear from small and mid-sized business leaders and how I usually respond:

• “We’re too small to need a policy.” If you’re using AI, even casually, you need clear guidelines.
• “We’ll just borrow from what big companies are doing.” Their policies don’t reflect your size, risk profile, or team culture.
• “We’ll wait until regulations require it.” That’s like waiting for a fire inspection before putting up an exit sign.
• “We want to stay flexible.” A good policy supports flexibility. It tells people what’s encouraged, not just what’s forbidden.

What a good AI policy unlocks

This isn’t just about protection. A clear AI policy enables:

• Faster decision-making without second-guessing
• Confident experimentation within known boundaries
• Better vendor management and due diligence
• Readiness for audits or client questions
• A stronger position as AI-related laws evolve

In short, it’s how you turn uncertainty into forward motion.

What goes into an SMB-ready AI policy?

You don’t need to boil the ocean. Start with a one to two-page document that covers:

1. Purpose: Why your company is using AI; to serve customers faster, to create insights, to scale operations. Be specific.
2. Acceptable use: What employees can and can’t do with AI tools. Can they use ChatGPT to draft client emails? What about uploading client data?
3. Data protection: Spell out what data should never go into public tools. This includes customer info, financials, and anything proprietary.
4. Oversight and accountability: Who owns the policy? Who keeps an eye on risk? Who updates it as tools and regulations evolve?
5. Escalation: What should someone do if an AI tool generates a questionable result, or if something goes wrong?

This isn’t static. Your AI policy should evolve with your business and your technology stack, just like your security or privacy policies do.

It’s part of a bigger roadmap

A policy is just one part of responsible AI adoption. It sits within a broader AI roadmap that connects your use of AI to business goals, measurable outcomes, and value creation.

When I work with SMBs, we often start with policy, but quickly move into questions like:

• Where can AI make the biggest operational impact?
• How do we align use cases with strategic goals?
• What metrics will show us whether AI is actually delivering value?

That’s where things get exciting when AI shifts from curiosity to capability.

How to get started (a quick checklist)

If you’re ready to start bringing clarity to your organization, here’s a short list:

AI Policy Quick Start for SMBs:

• ✅ List where and how your teams are using AI today
• ✅ Identify what data is most sensitive or exposed
• ✅ Define what “acceptable use” looks like in plain language
• ✅ Assign a single point of ownership
• ✅ Draft a one-page policy and share it across your team

If you're not sure where to begin

The hardest part of this is usually not writing the policy. It’s carving out the time and getting alignment. That’s where I can help.

I work with SMBs to create AI policies that are practical, aligned with your culture, and built to scale. No technical jargon. No legal maze. Just a clear starting point.

If you're exploring AI, already using it, or simply unsure where the risks are, send me a note. I’m happy to walk through a simple framework and help you take the first step.