Last materially reviewed: September 3, 2026
Direct Answer
Businesses that allow employees to use generative AI should set clear rules on approved tools, confidential information, personal data, intellectual property, human review and accountability. The template below is a practical starting point and should be adapted to the organization’s actual systems, risks and legal obligations.
Free AI Usage Policy Template
1. Purpose
This policy governs the use of generative AI and other artificial intelligence tools for company work. Employees may use AI only in ways that protect company information, personal data, intellectual property, clients and the security of company systems.
2. Approved AI Tools
Employees may use only AI tools approved by the company for work involving company information. Personal or unapproved accounts must not be used for restricted information.
3. Information That Must Not Be Uploaded
- passwords, API keys or authentication credentials;
- confidential business information unless specifically approved;
- personal or sensitive personal information unless the processing has been approved and is legally permitted;
- client information protected by contract or professional duty;
- source code, trade secrets or unpublished intellectual property unless authorized.
4. Human Review
AI output must be reviewed by a qualified employee before it is used in decisions, customer communications, legal documents, financial work, public content or other material outputs.
5. Accuracy and Hallucinations
Employees must verify factual claims, citations, calculations and legal or technical conclusions generated by AI. AI output must not be treated as automatically accurate.
6. Copyright and Intellectual Property
Employees must avoid requesting or using AI output that knowingly infringes third-party rights. Company ownership and approval rules continue to apply to work produced with AI assistance.
7. Personal Data
Any use of personal data with AI must follow the Data Privacy Act, company privacy policies, applicable contracts and approved processing purposes.
8. Security
Employees must not use AI to bypass security controls, expose credentials, generate malicious code for unauthorized purposes or disclose vulnerabilities without authorization.
9. Disclosure and Recordkeeping
Teams may require disclosure of material AI assistance for specified work products and should retain records where needed for audit, quality control or compliance.
10. Violations
Misuse of AI tools may result in removal of access, corrective action or disciplinary measures consistent with company policy and applicable law.
How to Customize This Template
- name the approved AI tools;
- define confidential-data classifications;
- identify who approves exceptions;
- add industry-specific privacy or regulatory requirements;
- define record-retention rules;
- align the policy with employment and disciplinary procedures.
Also read Can Employees Use ChatGPT and AI at Work?.
This template is general information and should be reviewed for the organization’s specific legal, contractual and operational requirements.