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AI Policy

How to Write an AI Policy for Your Small Business

By Ceri Davies · 22 October 2026 · The AI Training Co™

Here's a fun fact. Whether you've given them permission or not, someone on your team is probably already using AI. That's not a disaster. But it does mean you need a few ground rules, and that's all an AI policy really is.

And no, it doesn't need to be 30 pages long. The best ones I've seen fit on two sides of paper.

Why bother?

Three reasons. It protects your customers' information. It gives your team confidence, because they know what's OK instead of guessing. And it shows clients you're taking this seriously, which more and more of them are asking about.

What to put in it

Keep it to these sections and you'll cover what matters.

Example wording you can adapt

"We encourage everyone to use AI to make their work easier. Use only the approved tools listed below, signed in with your work account. Never enter customer personal details, passwords or confidential information. Always check AI output before it's shared outside the business. If you're unsure, ask [name] before you use it."

That's it. Five sentences that cover most of what goes wrong.

The mistakes I see most

Banning AI completely. It doesn't stop people using it, it just stops them telling you. Writing it and filing it. If nobody's walked the team through it, it doesn't exist. Making it too long. If it reads like a legal contract, people won't read it. Writing it without the team. Ask them what they're already using it for. You'll learn a lot.

How to roll it out

Talk it through in a team meeting. An email won't cut it. Give people real examples of good and bad use from your own business. Then back it up with training, because a policy tells people the rules but training shows them how to work within them.

If you're still working out the safety side, have a read of is it safe to use ChatGPT at work? And if you'd like help shaping a policy that fits how you actually work, our bespoke AI training can build it in. Our AI and ethics training covers the responsible use side in more depth.

Quick answers

Does a small business legally need an AI policy?

There's no UK law that specifically says you must have one. But if your team uses AI with customer information, UK GDPR still applies, and a short policy is the easiest way to show you've thought about it.

How long should an AI policy be?

One or two pages is plenty for most small businesses. If it's too long, nobody reads it.

How often should we review our AI policy?

Every six months is a good rhythm, or sooner if you bring in a new tool. AI changes quickly, so a policy from last year can already be out of date.

Want Help Getting It Right?

We can help you shape an AI policy that fits how your business actually works, then train your team on it so it doesn't just sit in a folder.

See Bespoke AI Training