How to create ethical AI policies in your organization
Table of Contents
By: James M. Tobin, Edited by: Rebecca Munday
Published: April 16, 2025
Artificial intelligence (AI) continues to solidify its position as one of the most impactful technological developments in recent history.
However, AI poses many risks, and organizations need a detailed plan to mitigate them. Key risks include privacy, security, and accountability.
Explore key elements of ethical AI policy for companies, and find out how your organization can create one.
Purpose of an AI policy
As you learn about artificial intelligence, you'll understand that AI offers great potential while also posing considerable risks. AI policy for companies should tap into that potential while also mitigating those risks.
More specifically, AI policies strive to:
- Establish clear, consistent, and standardized rules for using AI
- Define the responsibilities of end users
- Align AI with organizational culture
AI executive education programs have an important role to play in helping organizational leaders better understand AI benefits and drawbacks and how to adjust their strategy and guidelines accordingly. Below are some steps to help you build an ethical AI policy.
Steps to create an AI policy
This 10-step process explains the core elements you should consider when forming and refining an AI policy for your company:
1. Form a committee
Put together a group of senior executives and frontline stakeholders whose roles and teams will be directly affected by your organization's AI adoption. If your business includes board-level governance, ensure board members and shareholders are also represented.
Task the committee with performing research and developing organizational AI policy.
2. Educate leadership
All organizational leaders should have a solid working knowledge of AI and its risks and benefits, at minimum. For specific insights, consult this resource on what executives should know about AI.
3. Define the policy's objectives
Specify the core purpose and goals of your organizational AI policy. Examples of potential goals include:
- Optimizing efficiency
- Improving customer service
- Automating labor-intensive tasks
- Embracing a culture of innovation
All committee members should understand and agree on policy objectives. Remember that your policy can include multiple objectives.
4. Decide the values that will guide AI use
Next, define the core values that will guide your organization's use of AI. Specify one or more tangible values that align with your policy objectives.
Examples of AI usage values may include:
- Fairness and transparency
- Inclusivity and responsibility
- Security and privacy
- Human well-being and safety
Identifying these values at the policy formulation stage can enhance accountability and protect employee trust.
5. Identify use cases and risks for AI
After defining policy goals and AI usage values, specify how your organization will use AI and what risks it may face in doing so.
For insights, consult these resources on how AI can help businesses and the known or potential risks AI may pose.
6. Ensure the policy meets legal and regulatory requirements
Regulatory frameworks for artificial intelligence largely remain in development, and in many jurisdictions around the world, they lag behind adoption rates. This is one of the inherent risks that AI policy for companies should address.
If regulatory regimes already exist in your jurisdiction, ensure your policy is compliant. If not, keep a close watch on evolving developments.
7. Establish accountability
Organizational accountability is another major ethical issue associated with AI. Improve accountability by establishing policies, procedures, and points of contact for:
- AI development
- Organizational use
- Compliance with organizational policy
8. Create clear documentation and training that helps users understand how AI works
As you prepare to implement AI in your business, be sure to distribute documentation that clearly describes the following:
- Privacy and security protocols
- Data management requirements
- Channels for voicing concerns or complaints
Also, ensure that all employees impacted by the technology understand how AI works and what it can and cannot do. Design and implement training programs to help users extract maximum benefit from the AI technologies you adopt.
9. Communicate the AI policy
Finalize the policy in writing, using accessible language that non-experts can readily understand. Ensure that the policy explains, in practical and relatable terms, how your organization will and will not use AI.
Follow up by running a company-wide "town hall" on your pending AI implementation and by rolling out your AI training program.
10. Review and update the AI policy to include new best practices and feedback
After completing your AI integration, carefully monitor its results and compare them against the objectives, values, use cases, and risks you identified earlier in the process. Address current employee concerns in a visible and transparent way.
Finally, conduct regular reviews of your AI policy. Update it as necessary, especially as new technologies emerge or as regulations shift.