Why your business needs an AI policy

A guide to best practices

In the digital wilds of the 21st century, artificial intelligence (AI) isn't just a fancy buzzword — it's your new office pet that needs a bit of training before it can be trusted not to eat the furniture. Applications for its use run the gamut, from recruiting to forecasting and chatbots to R&D, and throughout virtually all industries. But with great power comes great responsibility. Here's why and how your business should whip up an AI policy faster than you can say "Skynet."

Why develop an AI policy

A comprehensive AI policy guides employee interaction with AI systems to maximize its benefits, mitigate risks, and ensure ethical use and compliance.

As great as it is, AI technologies can pose risks, including bias, privacy breaches, and unintended consequences. A well-defined AI policy helps identify risks and establish protocols to manage them effectively and responsibly. A policy helps set ethical guidelines on the use of AI to ensure it aligns with your company's values and societal norms.

Additionally, as AI and corresponding regulations continue to develop, businesses must stay compliant with legal standards to avoid penalties. A thorough AI policy can help ensure adherence to laws and regulations, especially as an increasing number of employees use it. A clear policy can guide employees on how to interact with AI tools, ensuring consistency in how they're used across the company.

What to consider and include in an AI policy

When developing an AI policy for your business, you'll want to consider the following.

  • Purpose of AI use — Clearly define how AI should be used within your business. This includes identifying tasks AI should handle and those it should not.
  • Data management — Outline data collection, storage, and usage procedures to protect privacy and ensure security.
  • Bias and fairness — Address potential biases in AI systems. Implement measures to ensure AI operates fairly and equitably.
  • Transparency and accountability — Establish who is responsible for AI systems at every level and ensure that AI decision-making processes are transparent.
  • Monitoring and evaluation — Regularly evaluate the effectiveness of AI tools and compliance with the policy. Update the policy as needed to adapt to new technologies and regulations.

Best practices for AI policy implementation

As with most new policies, a few strategic moves can make all the difference. First, constituents from various departments should be involved in developing the AI policy to cover all perspectives and uses within the company. Of course, that paves the way for better buy-in, too. Once your framework is set, consider consulting with AI ethics experts and legal advisors to ensure your policy addresses all potential issues.

Be sure to educate employees on the importance of the AI policy and train them on proper AI use and best practices. Then, regularly audit AI tools and systems to ensure they function as intended and comply with the policy.

Regional considerations for Wisconsin and Minnesota

Businesses operating in Wisconsin and Minnesota should also consider state-specific guidelines and regulations. For example, Minnesota has been proactive in addressing data privacy and security (see the Minnesota Government Data Practices Act), which should be reflected in AI policies by businesses operating within the state. Wisconsin businesses might need to focus on industry-specific regulations, especially in agriculture as well as healthcare and insurance where AI use is prevalent. Both states have specific state employment laws that should also be reflected in the policy.

AI policies no longer optional

Developing an AI policy is no longer optional but necessary for modern businesses. By establishing clear guidelines and best practices, your company can leverage AI technologies effectively while mitigating risks and ensuring ethical use. As AI continues to evolve, so should the policies that govern its use. They just might be your best protection against the rise of new robot overlords. 
 

By Brent Smith, employment law attorney at Johns, Flaherty & Collins, S.C. For questions about employment law, call him at 608-784-5678.

 


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