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AI Acceptable Use Policy

What Is an AI Acceptable Use Policy?

An AI Acceptable Use Policy (AUP) sets clear guidelines for how employees, contractors, and partners can responsibly use AI tools and agents at work, including what's approved, what data can be shared, and who's accountable when something goes wrong. A useful policy goes beyond a blanket approval or ban. Without one, AI adoption tends to happen anyway, just informally: employees sign up for tools independently, introducing Shadow AI along with unverified outputs and unmanaged data exposure.

Because employees keep adopting new AI tools faster than most organizations can formally review them, a policy like this is only effective if it's revisited regularly rather than published once and left alone.

What an Effective AI AUP Includes

  • Scope and definitions — which stakeholders and AI systems the policy covers, ideally aligned with recognized frameworks (NIST, ISO, MITRE, OWASP).
  • Acceptable and prohibited uses — a clear line between what's allowed and what isn't, not just a vague "use AI responsibly" statement.
  • Data management responsibilities — what data can and can't be shared with which tools.
  • Incident response procedures — what happens when something goes wrong, who's notified, and how.
  • Compliance and enforcement — defined consequences for violations, so the policy has actual teeth.

FAQ

As often as the organization's AI footprint changes, which in practice tends to be more frequently than most policies are reviewed.

It typically requires cross-functional ownership, security, legal, IT, and HR at minimum. See Chief AI Officer for how larger organizations are formalizing that ownership.


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Related Terms


Shadow AI

Shadow AI describes the AI tools and agents employees adopt on their own, from chat assistants to coding copilots to autonomous agents, without visibility or approval from IT or security teams.

AI Inventory

An AI inventory is the complete, actively maintained record of every AI tool, model, and agent in use across an organization, including the ones IT never approved.

Chief AI Officer (CAIO)

A Chief AI Officer (CAIO) is a senior executive responsible for an organization's AI strategy, balancing the pressure to adopt AI quickly against the risks that adoption introduces.

Related Resources

AI Acceptable Use Policy page

The ground rules for how employees can use AI tools and agents at work.

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