Marcia's Leadership Q and As: Why Leaders Set AI Policies
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Q. Some of our employees are using Artificial Intelligence (AI) while others are not. Should we set policies for AI usage?
A. Management is accountable to set and communicate the guidelines for AI usage for the business. Employees need guidelines so there is some structure for AI usage, so it doesn’t become a liability. From data leaks to biased decisions to reputational damage, the risks are real. Policies are established so AI becomes a catalyst for innovation, customer trust, and strategic growth.
Set Direction
To establish relevant AI policies, executives define and communicate why the organization is choosing to use AI. There are multiple reasons, and those will also exponentially grow as all employees accelerate their use and opportunities to use AI. To begin, the business may commit to improving its efficiencies, delivering personalized customer experiences, accelerating creative and innovative endeavors, and more.
The key is that leadership communicates its purpose effectively. Employees and teams work to support that aim. AI strategies and tools are used to support achieving the aim. What is also defined is what will Not be done with AI. This clarity will build trust within the organization and to stakeholders and customers.
Build Governance
AI requires oversight. A cross-functional committee can be established to assess and monitor AI usage. How will major projects using AI be chosen and monitored? How will risks be monitored? Process ownership and definition are created.
Protect Data and Reputation
Data is the fuel for AI and misusing it is the fastest way to lose trust with customers, regulators, and the market. Policies must demand encryption, secure vendor contracts, and strict compliance with data protection laws. Leaders must be explicit: sensitive personal data doesn’t belong in unprotected AI systems.
Clarity for Employees
AI should expand creativity, not create confusion and chaos. Management needs to articulate the boundaries: what tools to use and how to assess new ones, when to disclose AI involvement, and what’s off-limits. Training is essential. Teams need to be able to assess risks, handle data responsibly, and escalate concerns (create a process that flows for swift decisions.) An area for experimentation is also needed.
Continually Improving Policies
Because AI is rapidly developing and changing, the Committee also needs to also be continually improving its processes and reviews. Technology and regulations will shift. The oversight committee and teams must have open communication flow, monitor competitors, and receive customer feedback. A company’s AI policies must match and support the business strategies.
Forward Thinking
Executives who create, set, and communicate evolving AI policies protect their organizations from risk while unlocking innovation. Those who avoid the hard conversations will get blindsided. Leaders will move into the future with courage and clarity. Communication and addressing the rapid development, policy development, and usage of AI will be a part of every executive agenda.
