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Leadership & A.I. Policy

Volume: June 2025

It’s hard to believe that it has been two years since I published a series of newsletters focusing on artificial intelligence. In one of the newsletters, I shared a sample AI policy. It was my hope that leaders would work with their HR and legal departments to subsequently create their organization’s customized AI policy. Surprisingly, their remains a large number of organizations that have yet to create and deploy an AI policy.

Well, and I am going to sound a little bit like Woody from the original Toy Story here (he spoke about finding a “moving buddy”), but I will put it this way: “AI Policy; don’t have one? Get one!” I truly am serious here folks. If your organization does not have a policy in place that clearly states artificial intelligence usage guidelines, please (please!) use your influence to get one created and communicated asap. Below is a sample AI Usage Policy that I created, ironically, via AI.

Some of you may be curious as to the AI that I leveraged, as well as the Prompt I entered to create the policy that appears below. It was ChatGPT and here the exact Prompt used: “Please create a comprehensive Artificial Intelligence policy that could be inserted into a process and procedure manual. Seek to maximize safety protocols while also offering AI usage guidelines that could provide maximum benefit to the organization.”

For further context, here is ChatGPT’s message to me as it delivered (within seconds mind you) the below policy. “Here is a comprehensive Artificial Intelligence (AI) Policy that can be inserted into a Process and Procedure Manual. It is structured to maximize safety, ensure compliance, and encourage productive and ethical use of AI within an organization.”

With all that out of the way, on to a necessary disclaimer and then an informational AI policy that will hopefully spur many of you into action.

DISCLAIMER: We here at Leadership Simplified are NOT attorneys. The following is provided for information only and is designed to spur leaders into action regarding the creation of their own AI policies and procedures. Leaders are advised to always consult their human resources and legal departments before putting company policies into place.

Artificial Intelligence (AI) Usage Policy

Effective Date: [Insert Date]
Last Reviewed: [Insert Date]
Next Review Date: [Insert Date]

1. Purpose
This policy establishes standards and protocols for the safe, ethical, and effective use of Artificial Intelligence (AI) technologies across the organization. The intent is to safeguard organizational integrity, protect stakeholder data, and maximize the benefits AI can provide in enhancing decision-making, productivity, and innovation.

2. Scope
This policy applies to:

All employees, contractors, consultants, interns, and third-party vendors.
All AI tools, systems, and platforms used for data analysis, automation, communication, decision support, or customer interaction.
Both proprietary and third-party AI systems used in operations.

3. Definitions

AI (Artificial Intelligence): Systems or tools that simulate human intelligence processes including learning, reasoning, and self-correction.
Generative AI: Tools that produce new content such as text, images, audio, or code based on input prompts.
Automated Decision-Making: Decisions made by AI without human intervention.
Responsible AI Use: Ethical and lawful deployment and monitoring of AI that aligns with human values and organizational goals.

4. Guiding Principles

Transparency: AI operations and decisions must be explainable and traceable.
Accountability: Human oversight is required in all AI-influenced decisions, especially those impacting individuals or critical business outcomes.
Privacy & Security: AI usage must comply with all applicable data privacy laws (e.g., GDPR, HIPAA) and internal cybersecurity standards.
Equity & Inclusion: AI tools must be regularly reviewed for bias and fairness to prevent discrimination.
Compliance: All AI use must adhere to relevant laws, regulations, and industry best practices.

5. Acceptable Use Guidelines
Approved uses of AI include, but are not limited to:

Data analysis and visualization to support decision-making.
Business process automation (e.g., invoice processing, customer service chatbots).
Predictive modeling for customer behavior, inventory, or risk assessment.
Content generation for internal communications, reports, and training materials, with appropriate human review.
Language translation or accessibility enhancements.

6. Prohibited Uses
The following AI use cases are strictly forbidden:

Making employment, legal, medical, or financial decisions without human oversight.
Deploying AI tools that process or infer sensitive personal information without consent.
Using generative AI to fabricate data, impersonate individuals, or manipulate public opinion.
Integrating unvetted or unauthorized AI tools into core business systems.
Relying solely on AI for regulatory compliance or legal interpretation.

7. Risk Management & Safety Protocols

Risk Assessments: AI tools must undergo a risk and impact assessment prior to deployment.
Bias Testing: AI systems must be evaluated periodically for accuracy, fairness, and unintended biases.
Audit Trails: All AI-based decisions should be logged and reviewable for audit purposes.
Incident Response: Any AI-related anomaly, breach, or ethical concern must be reported immediately to the Data Protection Officer (DPO) or AI Governance Committee.

8. Oversight and Governance

AI Governance Committee: A cross-functional team responsible for reviewing AI use cases, setting standards, and monitoring compliance.
Ownership & Accountability: Each department using AI must designate an AI Use Steward to ensure adherence to this policy.
Training & Awareness: All staff must complete mandatory training on responsible AI usage annually.

9. Third-Party AI Tools

Third-party AI vendors must be vetted for data protection, reliability, and ethical practices.
Contracts with AI vendors must include clauses on data security, ownership, explainability, and liability.

10. Review and Revision

This policy will be reviewed at least annually or as needed in response to significant legal, technological, or operational changes.

11. Policy Violations
Non-compliance may result in:

Suspension of access to AI tools.
Disciplinary action up to and including termination.
Legal consequences where applicable.

12. Contacts
For questions or reporting concerns, please contact:

AI Governance Committee – [Insert Contact Info]
Data Protection Officer (DPO) – [Insert Contact Info]

Bottom Line: Please help to reduce Doug Van Dyke’s stomach acid and stress levels by creating/updating your organization’s AI Usage Policy. Father’s Day is this month people, throw me a bone here (and drastically reduce risks within your organization in the process).

Until next time, be well.

Doug Van Dyke is a leadership development expert, executive coach, strategic planner, and Certified Speaking Professional. He is AI Literate and strongly desires for you to be as well. Contact him at .(JavaScript must be enabled to view this email address), www.leadershipsimplified.com, 941-776-1121.