Artificial intelligence tools have become increasingly accessible to businesses of all sizes. Your employees are likely already using AI-powered applications—from ChatGPT for drafting emails to AI-enhanced design tools and automated customer service platforms. While these tools can dramatically boost productivity, using AI without proper guardrails exposes your business to significant risks including data breaches, compliance violations, and reputational damage.
When employees use AI tools without oversight, several critical risks emerge. Many popular AI platforms store and analyze the data you input to improve their models. This means sensitive business information, client data, or proprietary strategies could inadvertently be shared with third parties or even exposed to competitors using the same platform.
Beyond data privacy concerns, AI-generated content can contain factual errors, biased information, or even hallucinated details that appear authoritative but are completely fabricated. For businesses in regulated industries, using AI without proper controls could lead to compliance violations with serious financial and legal consequences.
Intellectual property issues also arise when AI tools trained on copyrighted material generate content for your business. The legal landscape surrounding AI-generated work remains unsettled, potentially exposing you to liability.
The foundation of responsible AI usage starts with a comprehensive acceptable use policy. This document should clearly define which AI tools are approved for business use and which are prohibited. Your policy needs to specify what types of information can and cannot be entered into AI systems.
For example, your policy might prohibit employees from inputting customer personal information, financial data, trade secrets, or any information covered by non-disclosure agreements into public AI tools. You should also establish guidelines for verifying AI-generated content before it's used in business communications or decision-making.
Make your policy accessible and ensure every employee understands it through regular training sessions. Your team should know not just the rules, but the reasoning behind them—when people understand the risks, they're more likely to follow guidelines.
Policy alone isn't enough—you need technical safeguards to enforce your AI governance framework. Consider implementing data loss prevention (DLP) tools that can detect and block sensitive information from being transmitted to unauthorized AI platforms. Network monitoring can help you identify which AI tools employees are accessing and whether they're using approved solutions.
For approved AI tools, configure them with the highest privacy settings available. Many enterprise AI platforms offer options to opt out of data training or to process information locally rather than in the cloud. Review and adjust these settings to align with your security requirements.
Establish a vetting process for new AI tools before they're approved for company use. This process should evaluate the vendor's security practices, data handling policies, compliance certifications, and terms of service. Document your findings and revisit them periodically as these platforms evolve rapidly.
Effective AI governance doesn't mean blocking innovation—it means channeling it safely. Rather than simply prohibiting AI use, identify secure alternatives that meet your team's needs. For instance, if employees need AI writing assistance, consider enterprise versions of AI tools that offer enhanced privacy protections and don't use your data for model training.
Create a process for employees to request evaluation of new AI tools they believe could benefit the business. This approach acknowledges that your team members are often closest to efficiency opportunities while ensuring security review happens before adoption.
Encourage experimentation within your defined boundaries. When employees understand they can innovate safely within established guardrails, they're more likely to embrace the policy rather than work around it.
Your employees are your first line of defense in managing AI risks. Regular training sessions should cover how to identify sensitive information, recognize the limitations of AI-generated content, and use approved tools effectively. Use real-world examples relevant to your industry to make the training concrete and memorable.
Address common scenarios your team might encounter: What should they do if they accidentally input sensitive data into an AI tool? How should they fact-check AI-generated information? When should they consult with IT or management about AI usage questions?
Create easy reference guides and decision trees that employees can consult when they're unsure about whether a specific AI use case is appropriate. The easier you make it to do the right thing, the more likely your team will follow your guidelines.
The regulatory landscape for AI is developing rapidly at federal, state, and industry levels. Several states have introduced AI governance legislation, and federal agencies are issuing guidance on AI use in specific contexts. If your business operates in healthcare, finance, or other regulated industries, AI usage may already be subject to existing compliance frameworks.
Regularly review updates from authoritative sources like the National Institute of Standards and Technology (NIST), which has published AI risk management frameworks, and the Cybersecurity and Infrastructure Security Agency (CISA), which provides guidance on secure AI implementation. Consider how emerging regulations might affect your business and adjust your policies accordingly.
Document your AI governance efforts. If regulations do impact your business or if you face an audit, having clear policies, training records, and compliance documentation demonstrates that you've taken AI risks seriously.
Placing guardrails around AI usage in your business protects you from significant risks while still allowing you to harness the productivity benefits these tools offer. The key is implementing a thoughtful governance framework that combines clear policies, technical controls, employee training, and ongoing monitoring.
If you're unsure where to start with AI governance or need help implementing technical controls to manage AI risks in your Austin-area business, Steel Aegis can help. Our team specializes in helping small and medium businesses navigate complex technology challenges with practical, effective solutions. Contact us today to discuss how we can help you develop and implement an AI governance strategy that protects your business while enabling innovation.