AI Governance
Most small businesses are already using AI tools without a written policy. That is not necessarily a crisis — but it becomes one the moment a client asks what you do with their data, or an employee pastes confidential information into a tool nobody has reviewed. An AI usage policy does not need to be a legal document. It needs to be a working reference that names your tools, sets access rules, and gives your team something concrete to follow.
Why SMBs need a policy before they feel ready
Enterprise AI governance programs assume you have a legal team, a procurement process, and an IT department. Small businesses have none of those — but they still touch client data, employee records, and proprietary information through AI tools every week.
A lightweight policy closes the gap between "we use AI informally" and "we can explain our approach." It aligns descriptively with frameworks like the NIST AI RMF without claiming certification against them.
Section 1: Tool inventory
List every AI tool in active use — writing assistants, transcription, image generation, code helpers, research tools. For each entry, note who uses it, what kind of data it handles, and whether a data processing agreement exists.
This section is the foundation. Without it, every other rule is abstract.
Section 2: Access rules
Define who may use which tools and under what conditions. A solo consultant might allow all tools for internal drafts but restrict client-data use to approved vendors only. A five-person agency might require manager sign-off before adding a new tool.
Keep rules specific enough to act on. "Use good judgment" is not a rule.
Section 3: Data handling
State what categories of data may enter AI tools and what may not. Customer PII, financial records, and unreleased product information are common exclusions. Describe where outputs go — shared drives, email, client deliverables — and who reviews them before external use.
Section 4: Output review
AI outputs are drafts, not final work. Specify who reviews AI-generated content before it reaches clients, customers, or public channels. Even a one-sentence rule — "All client-facing AI drafts require human review by the project owner" — prevents the most common failure mode.
Section 5: Update cadence
Tools change. Vendors update terms. New employees bring new habits. Set a quarterly review date and a named owner responsible for updating the inventory and rules. A policy without a maintenance plan becomes outdated within months.
Start with the AI Readiness Workflow if you want a structured path from inventory to readout.