Artificial intelligence (AI) isn’t something only big tech companies need to think about anymore. In fact, small and midsized businesses (SMBs) across Michigan are already using AI in ways they may not even realize—through tools like Microsoft Copilot, Google Workspace, Zoom, Canva, and many others that now incorporate AI features as a standard part of their offerings.
Employees may also be experimenting with free or low-cost public AI tools, such as ChatGPT, Claude, and Midjourney, for everything from drafting marketing copy to analyzing business data. Without clear guidance from leadership, this use of AI can quickly become a legal risk.
That’s why it’s critical for businesses of all sizes to adopt a clear, written AI policy. An AI policy not only sets expectations internally but also protects the company if legal or security issues arise down the road.
How AI Is Already Being Used
Many business owners assume that because they haven’t formally adopted AI platforms, they don’t need an AI policy. In reality, AI is already woven into many common business tools and workflows:
- Content creation: Employees may use AI to help draft blog posts, marketing materials, emails, or website copy.
- Customer service: Many businesses now rely on AI-powered chatbots or automated response systems.
- Data analysis: AI can help analyze sales trends, customer feedback, or operational data to generate insights.
- Hiring and HR: AI tools are sometimes used to screen resumes, match candidates to job descriptions, or even analyze video interviews.
- Productivity tools: Common platforms like Microsoft Word, Excel, and Outlook now include built-in AI features.
In many cases, employees start using these tools informally to save time or enhance their work—often with the best intentions. But without clear guardrails, this can lead to serious risks.
The Risks of Unmanaged AI Use
AI tools are powerful, but they are not without risks—especially when used casually or without a formal framework in place. Some of the key risks include:
- Confidentiality breaches: If employees enter proprietary data or client information into a public AI tool, that data may be stored, used to train the model, or exposed in a future breach.
- Intellectual property issues: The ownership of AI-generated content is legally murky. Using such content in marketing, product development, or client work could lead to disputes.
- Bias and discrimination: AI models can inadvertently introduce or perpetuate bias, especially in hiring or customer interactions.
- Data security: Many AI services are run by third-party vendors with their own security practices. If an AI vendor suffers a data breach, your business could be impacted.
- Compliance challenges: Using AI in regulated industries (such as health care, finance, or education) can create compliance risks.
Why an AI Policy Matters—Even If You Aren’t “An AI Business”
An AI policy is not just for tech companies. It’s a key risk management tool for any business that touches sensitive data or produces valuable intellectual property—which applies to nearly every business today.
It also provides an important legal safeguard. For example, if a data breach at an AI vendor exposes sensitive information from your business, having an AI policy in place can demonstrate that you took reasonable precautions. Courts and regulators often consider whether a company had clear internal policies and practices when determining liability.
What Should an AI Policy Include?
A good AI policy is tailored to your specific business and industry, but generally it should cover:
- Approved tools: A list of AI platforms that are vetted and approved for business use.
- Prohibited use: A clear statement prohibiting employees from entering confidential or sensitive data into public or unapproved AI tools.
- Data handling: Guidelines for how data should be anonymized, protected, and stored when using AI services.
- Intellectual property: Clarifying who owns AI-generated content and when it can (or cannot) be used in business deliverables.
- Compliance and legal review: Ensuring AI use aligns with industry-specific regulations and applicable laws.
- Human oversight: Reinforcing that AI-generated outputs must be reviewed and approved by a qualified person.
- Employee training: Providing regular education and updates on responsible AI use.
A Policy Today Prevents Problems Tomorrow
AI is evolving rapidly—and so are the legal, regulatory, and security landscapes surrounding it. Even if your business isn’t actively building AI products, you are almost certainly using AI in ways that require oversight.
If your business does not yet have an AI policy—or if your existing policies haven’t been updated to account for today’s AI tools—we can help. If you have any questions or require assistance in developing a practical, business-friendly AI policy that protects your company while enabling responsible innovation please contact Zana Tomich.
