Acceptable Use of AI Policy
An Acceptable Use of AI Policy template that defines approved tools, data-handling rules, human review, and prohibited uses. It helps HR set clear guardrails before employees use AI for work.
Trusted by frontline teams 15 years of frontline software AI customization in seconds
Built for: Technology · Healthcare · Financial Services · Professional Services · Retail
Overview
This Acceptable Use of AI Policy template sets the rules for when employees may use AI tools, what kinds of data they may enter, and how AI-generated output must be checked before it is used. It is built for employers that want a clear internal policy for everyday workplace use of generative AI, predictive tools, and other AI-assisted workflows.
Use this template when your organization is allowing employees to draft content, summarize information, analyze data, or support routine work with AI and needs a consistent approval and review standard. It is especially useful when employees may handle confidential business information, personal data, customer records, or employment-related decisions. The policy also helps HR and Legal define who can approve tools, who owns exceptions, and what happens when someone uses AI in an unsafe or unauthorized way.
Do not use this template as a substitute for a technical security standard, vendor contract, or model-specific governance document. It is also not the right fit if your organization has banned AI entirely or if the only issue is a narrow use case such as one department’s software procurement rule. The policy should be paired with training, tool-specific guidance, and any jurisdiction-specific privacy or employment law overlays that apply to your workforce.
Standards & compliance context
- Align the policy with Title VII, the ADA, and the ADEA by prohibiting AI-driven employment decisions that are not reviewed by a human decision-maker.
- Use FLSA-aware language if AI is used to track time, productivity, or work output, because inaccurate records can affect overtime and classification issues.
- If AI touches leave or accommodation workflows, preserve FMLA and ADA processes, including the interactive process and individualized review of essential functions.
- For employee speech, organizing, or workplace complaints, avoid rules that could be read to chill Section 7 rights under the NLRA.
- Where employee or customer data is processed, add GDPR and CCPA controls for notice, minimization, access, retention, and vendor oversight.
- California employees, New York whistleblower contexts, and other state-law overlays may require additional privacy, retaliation, or reporting protections.
General regulatory context for orientation only — verify current requirements with counsel or the relevant agency before relying on this template for compliance.
What's inside this template
Purpose
Explains why the policy exists and what risk it is meant to control.
-
This policy establishes the rules for using AI tools in a way that protects company information, supports accurate and fair work products, and reduces legal, operational, and reputational risk.
Scope
Defines who and what activities are covered so employees know when the policy applies.
-
This policy applies to all employees, contractors, interns, temporary workers, and other personnel who use company systems or company data, or who use AI tools for work-related purposes. It applies to use on company devices, personal devices used for work, and any AI tool used to create, edit, summarize, translate, analyze, or generate work-related content.
Approved Use and Tool Authorization
Sets the boundary between allowed AI tools and tools that require approval or are off-limits.
-
Employees may use AI tools only for legitimate business purposes and only when the tool has been approved by the company or the employee has received written authorization from the appropriate manager, IT, legal, or compliance contact. Permitted uses may include: - Drafting internal documents, outlines, and first-pass communications - Summarizing non-confidential materials - Brainstorming ideas and improving grammar or readability - Assisting with coding, data analysis, or translation when reviewed by a qualified person Employees must not represent AI-generated content as human-authored work without review, and they remain responsible for the accuracy, legality, and appropriateness of any output they submit, send, or rely on.
Confidentiality, Privacy, and Data Protection
Tells employees what information may never be entered into AI systems and how protected data must be handled.
-
Employees must not enter confidential information, personal data, customer data, employee data, trade secrets, source code, security details, credentials, or other restricted information into any AI tool unless the tool has been expressly approved for that data category and the use has been authorized. Before using an AI tool, employees must: - Confirm whether the tool stores prompts, trains on inputs, or shares data with third parties - Use the minimum necessary information - Remove names, account numbers, identifiers, and other sensitive details when possible - Follow all company privacy, records retention, and data security requirements If a prompt or output may contain personal data, employees must handle it in accordance with applicable privacy laws such as GDPR, CCPA/CPRA, and any internal data-handling procedures.
Review, Verification, and Human Oversight
Requires human checking so AI output is not treated as final or authoritative.
-
All AI-generated output must be reviewed by a human before it is used externally, relied on for business decisions, or incorporated into final work products. Employees must verify that the output is: - Factually accurate and current - Complete and contextually appropriate - Free from hallucinations, fabricated citations, or unsupported claims - Consistent with company standards, brand requirements, and legal obligations Additional review is required for content involving employment decisions, customer communications, legal or financial analysis, safety matters, or any other high-impact use. Employees must escalate uncertain or risky outputs to a manager, legal, HR, compliance, or IT contact as appropriate.
Bias, Fairness, and Non-Discrimination
Prevents AI from reinforcing stereotypes or driving employment decisions without review.
-
Employees must not use AI tools in a way that creates or reinforces unlawful bias or discrimination. This includes decisions or recommendations affecting hiring, promotion, discipline, compensation, scheduling, accommodations, or other employment actions. When using AI for work-related analysis, employees must: - Check for biased, stereotyped, or exclusionary language - Avoid prompts or outputs that rely on protected characteristics unless legally required and reviewed for compliance - Use judgment to ensure outputs do not disadvantage individuals based on race, color, religion, sex, pregnancy, sexual orientation, gender identity, national origin, age, disability, genetic information, or other protected status Any suspected bias, discriminatory output, or adverse impact must be reported promptly.
Prohibited Uses
Lists the specific AI behaviors that are not allowed, which makes enforcement clearer.
-
The following uses are prohibited unless expressly approved in writing by the company: - Entering confidential or regulated data into an unapproved AI tool - Using AI to make final employment decisions without meaningful human review - Generating or submitting false, misleading, plagiarized, or deceptive content - Using AI to bypass security controls, authentication, or access restrictions - Creating harassing, discriminatory, threatening, defamatory, or unlawful content - Uploading third-party content in violation of copyright, license, or contractual restrictions - Using AI outputs as legal, medical, tax, or financial advice without qualified review
Roles and Responsibilities
Assigns ownership for approvals, training, monitoring, and exception handling.
-
**Employees / Policy Holders**: Use only approved tools, protect confidential information, review outputs carefully, and report concerns. **Managers**: Ensure team members understand the policy and escalate questionable use cases. **HR / Legal / Compliance**: Review high-risk employment, privacy, or discrimination-related uses and investigate reported issues. **IT / Security**: Maintain the approved tool list, access controls, and security review process. **Policy Holder**: Each employee is responsible for complying with this policy and for any AI-assisted work they submit or approve.
Compliance, Violations, and Discipline
Explains how violations are investigated and what corrective action may follow.
-
Violations of this policy may result in access restrictions, retraining, documented warning, removal of AI tool privileges, a performance improvement plan (PIP), or other disciplinary action up to and including termination, consistent with applicable law and company policy. Nothing in this policy is intended to interfere with protected concerted activity under NLRA Section 7, wage and hour rights under the FLSA, reasonable accommodation rights under the ADA, or other legally protected rights.
Jurisdiction-Specific Notes
Captures state or local carve-outs so the policy does not overstate one-size-fits-all rules.
-
**California employees:** Follow applicable California privacy requirements, including the CCPA/CPRA, when personal information is involved. **New York employees:** Any reporting or retaliation concerns must be handled consistently with applicable whistleblower protections, including New York Labor Law Section 740 where applicable. **All U.S. employees:** Employment-related uses of AI must be reviewed for compliance with EEOC guidance, Title VII, the ADA interactive process, and FLSA classification and overtime requirements. Where local law provides greater protection than this policy, the local law controls.
Review and Revision
Keeps the policy current as tools, laws, and internal practices change.
-
This policy will be reviewed at least annually and updated as needed to reflect changes in technology, business practices, and applicable law. The company may revise approved tools, data restrictions, review requirements, or disciplinary procedures at any time.
How to use this template
- 1. Fill in the effective_date, version, applicable_jurisdictions, applicable_roles, and policy holder so the policy has a clear owner and scope.
- 2. List the approved AI tools, the approval process for new tools, and any department-specific exceptions in the Approved Use and Tool Authorization section.
- 3. Define which data types are prohibited or restricted, including confidential business information, personal data, and regulated records, in the Confidentiality, Privacy, and Data Protection section.
- 4. Assign human review responsibilities so employees know when AI output must be verified, escalated, or rejected before use.
- 5. Add bias, fairness, and non-discrimination rules that prohibit using AI as the sole basis for hiring, discipline, accommodation, or other employment decisions.
- 6. Publish the policy, train managers and employees on the prohibited uses and discipline section, and review incidents during the annual policy revision cycle.
Best practices
- Name the policy holder and the approval chain for new AI tools so employees know exactly who can authorize exceptions.
- Require employees to verify facts, citations, calculations, and tone before any AI-generated content is sent externally or used in employment decisions.
- Treat personal data, customer data, trade secrets, and nonpublic company information as prohibited unless the policy expressly allows a specific approved tool and use case.
- State that AI output cannot replace the interactive process for ADA accommodations or the individualized review required for discipline and performance decisions.
- Include a documented warning and escalation path for unauthorized AI use so managers respond consistently instead of improvising.
- Train employees on prompt hygiene, including not pasting sensitive information into public tools and not relying on AI for legal, HR, or compliance advice.
- Review the policy after any new tool rollout, data incident, or regulatory change so the approved-use list stays accurate.
What this template typically catches
Issues teams running this template most often surface in practice:
Common use cases
Frequently asked questions
What does this Acceptable Use of AI Policy template cover?
This template covers when employees may use AI tools, which tools are approved, what data may never be entered, and how AI-generated output must be reviewed before use. It also includes bias and fairness safeguards, prohibited uses, and discipline language. The structure is designed for HR policy adoption, not a technical AI governance program.
Who should use and enforce this policy?
HR typically owns the policy, with Legal, IT, Security, and department leaders helping define approved tools and data restrictions. Managers should reinforce the policy in day-to-day work, especially where employees draft communications, analyze data, or create content with AI. The policy holder should be a named role so employees know who approves exceptions and updates.
How often should this policy be reviewed?
Annual review is the standard, with interim updates whenever the company adopts a new AI tool, changes data-handling practices, or sees a legal or regulatory shift. If the policy is tied to customer data, employee data, or regulated workflows, it should be reviewed sooner when those processes change. The template includes review_frequency and effective_date fields so the policy stays current.
What are the biggest compliance risks this policy helps address?
The main risks are confidentiality breaches, privacy violations, inaccurate outputs, and discriminatory decision-making. The policy should align with Title VII, the ADA, the ADEA, and EEOC guidance by requiring human review and prohibiting AI use that drives employment decisions without oversight. If employee data or customer data is involved, GDPR and CCPA considerations may also apply.
Can employees use public AI tools with company information?
Only if the policy explicitly allows it and the data is not confidential, personal, or otherwise restricted. A good template requires employees to avoid entering trade secrets, personal data, client information, or nonpublic business information into public tools unless the tool is approved and protected by contract and configuration. If there is any doubt, the employee should treat the data as prohibited until the policy holder approves it.
How does this policy handle bias and discrimination concerns?
It requires employees to check AI outputs for bias, stereotypes, and unsupported assumptions before using them in hiring, discipline, performance, pay, or other employment actions. It also makes clear that AI cannot replace the interactive process, good-faith judgment, or individualized review required under laws like the ADA and Title VII. That keeps the policy focused on human accountability rather than automated decision-making.
What are common mistakes when rolling out an AI use policy?
A common mistake is writing broad rules without naming approved tools, prohibited data, or a review process. Another is failing to explain that AI output must be verified, since employees may assume the tool is accurate by default. Companies also miss the rollout step of training managers first, which leads to inconsistent enforcement and ad hoc exceptions.
How is this different from an ad hoc AI guideline in a handbook or memo?
An ad hoc memo usually tells employees to be careful, but it does not define approval authority, data restrictions, review steps, or discipline. This template is structured as a policy, so it can be adopted, versioned, and enforced consistently across departments. That makes it easier to audit, update, and connect to related security, privacy, and conduct policies.
Related templates
Ready to use this template?
Get started with MangoApps and use Acceptable Use of AI Policy with your team — pricing built for small business.
