Do I need a lawyer to write an AI policy?

For a basic internal policy, no. For companies in regulated industries, legal review is recommended. Start with a practical draft and refine it.

How long should the policy be?

One to two pages for a small business. If employees will not read it, it is too long.

Should I make the policy mandatory?

Yes. An optional policy is not a policy. Make it part of onboarding and require acknowledgment from all employees.

Quick answer

Keep it simple: one page covering approved tools, data rules, review requirements, and disclosure. Small businesses need practical guidelines, not 50-page policy documents.

Updated June 2026 · MmowW AI Compliance

How to Write an AI Policy for a Small Business (Under 50 People)

Small Business, Simple Policy

You do not need a 50-page policy document. A one or two page AI policy that everyone actually reads and follows is far more valuable than a comprehensive document that sits in a drawer. Focus on clarity and practicality.

The Five Essential Sections

Your AI policy needs five sections. First, purpose: explain why the policy exists in one or two sentences. We use AI to work smarter while protecting our data, our clients, and our reputation.

Second, approved tools: list the specific AI tools employees can use. If you have enterprise subscriptions, list those. If you have not evaluated any tools yet, state that employees should check with management before using any AI tool.

Third, data rules: create three clear categories. Green means data that can go into AI tools, such as public information. Yellow means data that needs manager approval. Red means data that must never go into AI tools, such as customer data and financial records.

Fourth, review requirements: state that all AI-generated work must be reviewed for accuracy before use. For client-facing work, require a second reviewer.

Fifth, disclosure: specify when employees need to mention AI use. At minimum, require disclosure for client deliverables and public-facing content.

Getting Team Buy-In

Share the draft policy with your team before finalizing it. Ask for feedback. People follow rules they helped create. Explain the reasoning behind each rule so people understand the why, not just the what.

Implementation

Roll out the policy in a team meeting, not just an email. Walk through examples. Answer questions. Make sure everyone understands the rules and knows who to ask when situations are unclear.

Review and Update

Schedule a review every six months. AI technology and regulations change quickly. Your policy should evolve with them.

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This article is for informational purposes only and does not constitute legal advice. Regulatory requirements change frequently — verify current rules with official sources. Built by Sawai Gyoseishoshi Office, Hiroshima, Japan.