What Should an AI Policy Include? Essential Components Explained
Executive Summary
- An AI policy establishes rules and guidance for AI use across your organization
- Essential components include: purpose, scope, principles, acceptable use, data handling, and accountability
- Policy complexity should match organizational needs—don't overcomplicate for small-scale AI use
- A good policy balances enablement with risk management—not just restrictions
- Policies should be living documents, reviewed and updated regularly
- This guide covers what to include, why it matters, and how to structure your policy
The 11 Essential Policy Components
1. Purpose and Objectives
Why the policy exists and what it aims to achieve.
2. Scope
Who and what the policy covers, including definitions.
3. Principles
The values guiding AI use (human-centered, transparent, fair, secure, accountable).
4. Acceptable Use
What AI use is permitted and prohibited.
5. Data Handling
How data is used with AI systems.
6. Risk Management
How AI risks are identified and managed.
7. Approval Processes
How new AI use is authorized.
8. Roles and Responsibilities
Who is accountable for what.
9. Training Requirements
What training is required for AI users.
10. Compliance and Enforcement
Consequences and compliance monitoring.
11. Incident Reporting
Response when things go wrong.
AI Policy Components Checklist
Foundation
- Purpose statement
- Clear scope (who, what)
- Key definitions
- Governing principles
Rules and Guidance
- Acceptable use guidelines
- Prohibited activities
- Data handling requirements
- Generative AI specific guidance
Governance
- Risk management approach
- Approval processes
- Roles and responsibilities
- Training requirements
Operations
- Compliance monitoring
- Enforcement approach
- Incident reporting
- Exception process
Administration
- Policy owner
- Review cycle
- Version control
Scaling Policy Complexity
| Organization Type | Approach |
|---|---|
| Small business (<50) | 1-2 page essential policy |
| Mid-size business | 3-5 page comprehensive policy |
| Enterprise | Full policy suite |
| Regulated industry | Detailed regulatory policies |
Frequently Asked Questions
Disclaimer
This article provides general guidance on AI policy development. Organizations should consult legal and compliance professionals for specific requirements in their jurisdictions.
Next Steps
Book an AI Readiness Audit with Pertama Partners for help developing or reviewing your AI policy.
Related Reading
Frequently Asked Questions
Long enough to be clear, short enough to be read. For most organizations, 2-5 pages for core policy, with appendices for detail.
