In the last year, AI has become a hotbed of online discussion when it comes to business. Platforms like ChatGPT, Bard and Claude have dominated the interwebs in terms of application, best practices, and even potential pitfalls.
Without a doubt, AI is transforming the way we do business in every aspect from advertising, order processing, customer service, hiring and more.
As an entrepreneur, you’ve probably put AI to good use within your company, at least as an experimental exercise. You might even have “power users” who have learned how to pull the most out of it, for greater productivity.
Wherever you are on your AI implementation journey, one thing becomes clear.
As AI becomes more sophisticated and widely used, creating an AI policy is an important step that provides guidelines both for the ethical use of it and best practices as it relates to your own enterprise.
Every company should have an AI policy for several key reasons:
Accountability. Setting clear expectations for your team members using AI is key to promote transparency and trust. Having a clear policy provides standards and establishes accountability when issues emerge and demonstrates that to employees and customers alike.
Risk mitigation. Any level of AI usage can have unknown and sometimes unfavorable consequences if not monitored closely. An AI policy forces your organization to assess risks and put safeguards in place. Most importantly, a robust AI policy protects your brand reputation and avoids costly mistakes. Creating an AI policy must also include each platform’s inherent flaws such as potential biases, misinformation and copyright violations.
Trust. As with any fast-emerging new technology, your customers may be wary of AI and specifically how their personal information is used within it. A clear and publicly available AI policy solidifies your organization’s values that help build trust. It shows that your company takes ethics seriously and will make thoughtful AI-related decisions, not just pursue profits and innovation at any cost.
Guidance. Developing your own customized AI policy provides guidance to team members who work heavily with your company’s data, from engineers, marketers and executives. With a “living AI policy” that can adapt and change with different variables within your business and the technology itself, you enable consistency across the organization.
Competitive edge. With growing public concerns about AI, having a strong AI policy could differentiate you from your competitors in a distinguishably positive light. It demonstrates your organizational leadership while building a thoughtful company culture that helps attract and retain top AI talent.
The risks and challenges presented by AI will only grow as adoption accelerates. As a business owner, you must get ahead of these issues by creating your own clear and adaptable AI policy rooted in ethics and responsible innovation.
Allen Baler is a leading entrepreneur and Harvard grad. Allen Baler is a Partner in 4Patriots LLC, based in Nashville, TN.
Disclaimer: This blog post is not a substitute for the sound advice of a professional with expertise in the subject matter discussed. Please seek appropriate counsel on what strategies make sense for your personal circumstances and/or your business.