Why Employers Should Develop AI Policies for Employees

The use of AI tools in everyday work is no longer theoretical — it is happening. Employees use AI tools to draft emails, summarize documents, analyze data, write code, prepare marketing materials and more. Increasingly, some organizations are also experimenting with AI agents—tools that can perform complex tasks with little human oversight.

Despite how common AI tools have become, there is often little formal guidance governing how employees may (or may not) use them, potentially creating legal, operational and compliance risks. Developing a clear, written AI policy positions employers to manage those risks while still allowing employees to benefit from the efficiencies of AI tools.

What’s the Difference Between Generative AI and AI Agents?

Generative AI is software that can create new content, such as text, images, code or video, based on user prompts. Popular examples include ChatGPT, Microsoft Copilot and Grok.

AI agents go a step further. They can interact with other software, access data and take actions with minimal human involvement. Without guardrails, AI agents can create significant unintended consequences.

Understanding what these tools are and how employees may be using them is the first step toward managing their impact.

Why Unregulated Employee AI Use Creates Risk

Employee use of AI tools raises a wide range of legal and business concerns, including:

• Data privacy and cybersecurity
• Confidential business information and trade secrets
• Protected health information
• Intellectual property and copyright laws
• Employee monitoring and workplace transparency

When an employee inputs information into an AI tool, that data does not simply disappear.  Depending on the platform and settings, the data may be stored, used to train AI models, accessed by third parties or, in some cases, even sold. There are also more technical risks, such as prompt injection—a way for bad actors to engage with an AI agent to extract sensitive information about a company. Having a carefully developed AI policy can help mitigate some of these risks.

What Should an AI Policy Include?

While there is no one‑size‑fits‑all policy, most employers should consider addressing the following:

1. Consistency With Existing Policies

An AI policy should align with existing data protection, cybersecurity and other policies. In many cases, those policies already address some AI‑related risks.

2. Approved Tools and Other Access Requirements

Employers generally take one of two approaches:

• Permissive approach: Employees may use AI tools as long as their use complies with the AI policy.
• Approved‑tools approach: Employees may only use specific, employer‑approved AI tools.

If an employer has enterprise licenses for certain tools, the policy should generally require employees to use the licensed versions of those tools and to remain signed in.  This helps ensure contractual protections, security controls and data safeguards are actually being utilized.

3. Accuracy and Human Oversight

AI outputs can be incorrect, incomplete or even made up. Policies should require employees to verify the accuracy of AI‑generated content before relying on or distributing it.

4. Handling of Confidential and Sensitive Information

The policy should clearly state what types of information may never be entered into AI tools which do not have the appropriate enterprise-level protections, including:

• Confidential business information and trade secrets
• Sensitive financial information
• Protected health information
• Confidential client or customer data

5. Monitoring and Transparency

If AI use is monitored, employees should be notified.  Any monitoring must comply with applicable state and federal laws governing employee surveillance and electronic communications.  Transparency reduces legal risk and builds trust.

6. Intellectual Property and Likeness Risks

AI tools can inadvertently create copyright or likeness issues.  Policies should prohibit employees from using AI tools in ways that infringe third‑party intellectual property or misuse images, voices or likenesses — particularly in marketing or public‑facing materials.

7. AI Agents and Autonomy

If employees are permitted to use AI agents, the policy should define:

• What level of autonomy agents can have
• What systems, programs or data agents can access
• Whether agents can send emails or communicate externally
• When human approval is required

Further, IT departments should take additional measures to ensure AI agents cannot exceed the autonomy permitted by the policy.

8. Professional Development Considerations

Employers may also want to address how AI fits into employee skill development. Overreliance on AI tools can undermine foundational skills. An AI policy can also be used to reinforce expectations around learning, judgment and independent work.

The Bottom Line

The question is shifting from whether employees will use AI to whether they will do so safely.  A well‑drafted AI policy can help employers:

• Protect sensitive data
• Reduce legal and operational risks
• Set reasonable boundaries
• Balance safety, efficiency and accountability

If you would like help creating or updating an AI policy for your organization, please contact Michael Tierce, Lisa Scidurlo, Christopher Harris or a member of Stevens & Lee’s Labor and Employment Group.