Free template

AI policy template for small businesses.

A free, plain-English AI acceptable use policy for UK businesses. Copy it, adapt it and share it with your team.

By James Tennant, independent AI consultant. Updated .

How to use this template

  1. Fill in the brackets. Replace everything in [square brackets] with your own details, and delete what doesn’t apply.
  2. List your approved tools. Section 3 matters most. If you’re not sure which tools your people use today, find out before you decide.
  3. Decide what client data may go where. Business versions of AI tools can usually be set so your data isn’t used for training. Free personal versions often can’t.
  4. Share it, and explain it. A short team briefing does more than an email attachment.
  5. Review it every six months, or whenever your tools change.

The template

[Company name]: AI acceptable use policy

1. Purpose

AI tools can save us time, but used carelessly they can expose confidential information, produce wrong answers and damage our clients’ trust. This policy sets out how everyone at [Company name] may use AI tools at work.

2. Who this policy applies to

Everyone who works for or with [Company name], including employees, contractors and temporary staff, whenever they use AI for work, on any device.

3. Approved AI tools

Only use the AI tools listed here for work, and only through your work account:

  • [Tool, e.g. Microsoft 365 Copilot, signed in with your work account]
  • [Tool, e.g. ChatGPT Business, through the company workspace]

Ask [Name or role] before using any other AI tool, including browser extensions, meeting note-takers and AI features in other software.

4. What you may use AI for

You may use approved tools to help with tasks such as drafting and editing text, summarising documents, research, brainstorming and analysing information, as long as you follow the rest of this policy. [Add or remove examples to suit your business.]

5. Information you must protect

Never put the following into an AI tool that isn’t on the approved list:

  • Personal information about clients, customers, staff or anyone else
  • Confidential client or customer information
  • Financial information, contracts and pricing
  • Passwords, security details and access codes
  • Anything else marked confidential or commercially sensitive

[Approved tools may be used with: e.g. internal documents and client information, but never special category data such as health records.]

6. Checking what AI produces

AI can be confidently wrong. You are responsible for anything you produce with AI, just as if you had written it yourself. Check facts, figures, names, dates and references before you rely on them or send them to anyone, and never send AI output to a client unchecked.

7. Being open about AI

Don’t present AI output as someone’s personal advice or judgement if it isn’t. [Tell clients when AI has been used in work for them, where they would expect to know.] Any AI that talks to customers directly, such as a chat assistant, must say that it is AI.

8. Accounts and security

Use your work account for approved tools, never a personal one, and protect it with multi-factor authentication. Don’t connect AI tools to company email, files or systems, or install AI add-ons, without approval from [Name or role].

9. Copyright and ownership

Don’t put other people’s copyrighted material into AI tools beyond what you’d normally be allowed to use. AI output can resemble existing work, so check anything you plan to publish.

10. Mistakes and concerns

If you put information into the wrong tool, or AI produces something that worries you, tell [Name or role] straight away. Reporting it quickly matters more than the mistake.

11. Training and review

Everyone will be shown how to use the approved tools safely. This policy was last reviewed on [date] and will be reviewed at least every [six] months, or sooner when our tools change.

Signed: ______________________   Name: ______________________   Date: __________

This template is general guidance, not legal advice. If you’re regulated, for example by the SRA, the FCA or a professional body such as ICAEW, check it against their guidance too.

Questions about AI policies.

  • Do small businesses need an AI policy?

    If anyone in your business uses AI for work, yes. A short policy tells people which tools they may use, what information must never go into them, and that they must check what AI produces. Without one, everyone makes their own rules.

  • Is an AI policy a legal requirement in the UK?

    There’s no general law that says you must have one. But UK GDPR still applies when personal data goes into AI tools, and a policy is one of the simplest ways to show you’re handling that responsibly. Regulated firms should also check their regulator’s guidance.

  • What should an AI policy include?

    Which tools are approved, what each may be used for, which information must never go into them, how to check AI output, how to stay secure, and who to tell when something goes wrong. The template on this page covers all of these.

  • How often should we review it?

    At least every six months, and whenever you add or change an AI tool. AI products and their terms change often.

Start with an AI health check.

A fixed-price review of how your business uses AI today, and what to change.

  • The tools your people use, including the ones nobody signed off
  • Better options, where they would save time or money
  • Data protection: where your data goes, who can see it, and any UK GDPR concerns
  • Clear next steps, in a short written report that’s yours to keep

£750 + VAT, fixed price.

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