Policy Agreement Defined

This 7-page AI Usage Policy template is a professionally drafted employment policy designed to help companies govern employee and contractor use of artificial intelligence and generative AI tools. It establishes clear rules, reduces legal and compliance risk, and provides a practical framework for responsible AI use in the workplace. The template is written in plain English, structured for enforceability, and fully customizable for different industries and company sizes. Who This Template Is For: This template is designed for employers, founders, HR professionals, in house teams, and legal professionals who need a clear and enforceable policy governing the use of AI and generative AI tools by employees and contractors. It's especially useful for companies that allow or plan to allow AI tools such as ChatGPT, image generators, code assistants, or other AI platforms in daily work and want to protect confidential information, intellectual property, and compliance obligations. What’s Included (Key Sections and Provisions): • Purpose and Policy Scope. Defines the intent of the policy, identifies who is covered, and clarifies how the policy fits within existing company rules. • Clear Definitions of AI and Generative AI. Establishes precise definitions for artificial intelligence, generative AI, AI tools, company data, personal information, and AI hallucinations. • Guiding Principles for Responsible AI Use. Sets expectations for human oversight, accountability, transparency, and risk mitigation. • Authorized Uses of AI Tools. Explains when and how AI may be used for business purposes and includes space to tailor use cases by role or department. • Prohibited Uses of AI. Clearly restricts high risk activities such as employment decisions, misuse of personal data, deceptive content, and illegal activity. • Data Security and Confidentiality Rules. Protects confidential information, trade secrets, regulated data, and personal information from improper AI input or disclosure. • Human Review and Accuracy Requirements. Requires human validation of AI outputs and addresses known risks such as bias and fabricated information. • Transparency and Disclosure Options. Provides optional internal or external disclosure approaches depending on company preference. • Intellectual Property Ownership Clause. Confirms company ownership of AI assisted work product created within the scope of employment. • Approved Tools and Vendor Controls. Allows companies to manage approved AI tools and evaluate third party AI vendors. • Monitoring and Compliance Rights. Reserves the company’s right to monitor AI usage and conduct audits. • Employee Training Requirements. Supports responsible adoption through required training and education. • Reporting and Enforcement Provisions. Establishes reporting channels, anti retaliation protections, and disciplinary consequences. • Legal Compliance Safeguards. Aligns the policy with U.S. employment, privacy, and labor laws. • Employee Acknowledgment Section. Includes a ready to use acknowledgment for employees and contractors. Download this AI Usage Policy template to establish clear rules for AI use, protect confidential information and intellectual property, and implement a ready-to-customize policy without starting from scratch.