Drawing The Map: What Mid-Sized Businesses Should Look For In An AI Governance Policy

Hey there –

If you’re anything like me, you didn’t get into business to become an expert in artificial intelligence. You got into it to solve problems, grow your company, and keep things running smooth and steady. But lately, you’ve probably noticed that AI isn’t just some tech trend on the horizon – it’s already in your shop, your emails, maybe even in your marketing decks or HR systems.

And if you’re really like the folks I’ve been talking to – directors, COOs, innovation leads at companies with a couple hundred employees – you’re not afraid of AI. What you’re afraid of is not knowing how it’s being used.

Shadow AI, they call it. Sounds spooky, right? And it kind of is – because when AI tools sneak in through the side door without policies in place, you’ve got risk you can’t see. And when leadership hasn’t drawn the map, guess who ends up holding the flashlight? Folks like you.

So, let’s talk plainly about how to take control and build a real-world, no-nonsense AI governance policy for your business. Here’s what to look for – and why it matters.

1. Start With the “Why”

First things first – an AI policy isn’t about stopping innovation. It’s about protecting your people, your brand, and your bottom line.

You need a north star, and that starts with a statement of purpose:
“We use AI to help us work smarter – but we do it responsibly, with guardrails, and in ways that reflect our values.”
That one sentence can change how your entire team sees governance – from a buzzkill to a business asset.

2. Define What Counts as AI

Most folks skip this part, but it matters: if you don’t say what AI is, you can’t manage it. Your policy should list examples:

• AI that makes decisions (credit scoring, hiring filters)
• AI that generates content (text, images, code)
• AI that learns from user behavior (recommendation engines)

You’re not trying to write a PhD thesis – just give your team a shared language so they know what’s in and what’s out.

3. Map What You’re Already Using

Before you make new rules, figure out what tools are already in play. Ask your departments:

• What AI tools do we use today?
• Who approved them (if anyone)?
• What data do they touch?

You might be surprised how many folks are using ChatGPT, Copilot, or Canva’s AI features without thinking twice. That’s not bad – it’s just unmanaged.

Your policy should say that all AI tools need to be logged, reviewed, and assigned an “owner.”

4. Clarify Who’s in Charge

In smaller companies, roles get fuzzy fast. So be specific:

• IT manages technical integrations and risks
• Legal or Compliance reviews for regulations and ethics
• Operations or Innovation leads approve use cases

Your policy doesn’t need a five-layer committee. But it does need to say who makes the call, who keeps the records, and who trains the team.

5. Set Clear Rules for Use

This is where the rubber meets the road. Your policy should answer these questions:

• Can employees use public AI tools? If so, for what?
• What kind of data can be input into AI tools?
• Which projects require approval before using AI?

You don’t have to ban everything – just make the expectations plain. For example:
“No customer data shall be input into public-facing AI tools without review by Legal or Compliance.”

Simple. Understandable. Enforceable.

6. Think About the “Oops” Factor

Even with the best intentions, AI can go sideways. You need a plan for:

• Mistakes (bad outputs, biased results)
• Breaches (data leaks or misuse)
• Audits (internal or external)

Spell out what employees should do if they spot a problem. That way, when something does happen – and it will – they’re not scared to raise their hand.

7. Keep It Human

This might be the most important part: your policy should sound like a human wrote it. Not a lawyer. Not a robot.

Talk about your company values. Talk about trust. Talk about how AI should help people do their jobs better – not replace them, not stress them out. Better yet, invite your employees into the process. Let them help shape the rules. That kind of buy-in turns a policy into a shared promise.

I know governance isn’t exactly glamorous. But in times like these, it’s what separates the steady ships from the ones stuck spinning their wheels.

You don’t need a 200-page policy.

You need a living document – a map that helps your team explore the new world of AI with confidence. And you don’t have to do it alone.

If you need a checklist, a template, or just a plain-English voice to walk you through it, we’ve got your back. Because in the end, AI isn’t the story. You are.
And a good policy? That’s just how we protect the story we’re writing together.

If AI is already in the game, it’s time to make sure it’s playing by your rules. Call us at 330-655-8144 or email info@ctgusa.net.

Follow us on LinkedIn for more tech insights!