November 26, 2025

The AI Policy Playbook: 5 Critical Rules to Govern ChatGPT and Generative AI

Let’s be honest.
AI is showing up everywhere. Employees use it to draft emails, summarize documents, brainstorm ideas, or troubleshoot problems. They’re using AI whether you’ve created rules for it or not.

And here’s the part that should make business owners pause:

Most organizations have almost no governance in place.

Studies show only a tiny percentage of leaders have a mature AI policy. That means companies are taking on risk without even realizing it. Not just cybersecurity risk, but compliance, privacy, accuracy, and copyright risk too.

But don’t worry. You don’t need to become an AI expert. You just need a clear, simple framework so your team knows what’s safe and what’s not.

Here are the five rules every small business in Kansas City should put in place.

Rule 1: Set Clear Boundaries Before Anyone Uses AI

Before anyone opens ChatGPT, decide:

  • What information employees may use in AI

  • What information must stay out

  • Where AI can support workflows

  • Where human judgment is required

  • Which teams must get approval before using AI

This prevents accidental data leakage, especially with confidential information like client records, financials, case notes, or health-related data.

Boundaries protect your business and build confidence for your staff.

Rule 2: Humans Must Always Stay in the Loop

AI can draft a message. It cannot understand context.
It can sound confident. It cannot guarantee accuracy.

Every AI-generated output needs human review.
Every time.

No exceptions for:

  • Client communication

  • Legal or financial content

  • Compliance-related documents

  • HR documents

  • Public marketing content

Also, remember: fully AI-generated content cannot be copyrighted.
If you want to own your work, human revision is essential.

Rule 3: Keep Logs and Be Transparent

Transparency is a safety net.
Keep simple records such as:

  • Who used AI

  • What tool they used

  • What prompt they entered

  • The date

  • How the output was used

This helps you:

  • Troubleshoot errors

  • Document compliance

  • Review usage over time

  • Update your policies as needed

Logs turn AI use into a measurable, trackable process.

Rule 4: Protect Data and Intellectual Property

This is the rule that saves businesses from unintentional violations.

Never allow employees to enter:

  • Client names

  • Internal documents

  • Contracts

  • Financial information

  • Protected health information

  • Confidential identifiers

Public AI tools are not private storage.
Treat them like social media: once you type it in, assume it is no longer under your control.

Your AI policy should be clear about what can and cannot be shared.

Rule 5: Review and Update Your AI Policy Regularly

AI evolves fast.
Your policies must evolve too.

Set a schedule to:

  • Revisit your AI policy quarterly

  • Review logs

  • Train employees

  • Identify new risks

  • Adjust boundaries

Making AI governance a continuous practice keeps your business safe as technology grows more powerful.

Responsible AI Use Builds Trust

A strong AI policy doesn’t slow you down. It protects you.
It gives your employees clarity.
It keeps your clients’ data secure.
It reassures insurers and auditors that you’re in control.

If you want help building an AI Policy Playbook for your team, we’re here to guide you step-by-step. AI should be an advantage, not a liability.