Artificial Intelligence (AI) is no longer a future concern — it’s a present reality impacting how businesses operate across every industry. Yet today, there are no federal or state laws that require businesses to have an AI policy.
That’s about to change.
Currently, 37 states and Congress are actively working to develop uniform AI regulations, and California is likely to be among the first states to pass enforceable laws. While there’s still uncertainty around exactly what those rules will look like, one thing is clear: Businesses that prepare now will be in a much stronger position to protect themselves later.
At Koegle Law Group, we help businesses like yours stay proactive, compliant, and protected. Here’s what you need to know.
Why You Should Create an AI Policy Now
Even though there is no immediate legal obligation, establishing an AI policy is a critical risk management tool. Here’s why:
- Anticipate Future Compliance: Laws are coming. Companies with policies in place will adapt more easily and avoid costly last-minute overhauls.
- Manage Ethical Standards: AI tools can introduce risks, including misinformation, data inaccuracies, and unprofessional language use. Clear policies protect your brand’s reputation.
- Reduce Legal Risk: Without employee guidance, businesses may face lawsuits, breaches of contract, or loss of bids due to improper AI use.
- Standardize Employee Expectations: Clear documentation of AI usage expectations strengthens your defense against wrongful termination or adverse action claims.
- Industry Advantage: In industries like tech, having an AI policy is already the norm. For others, early adoption signals leadership and responsibility.
What Should Your AI Policy Include?
A strong AI policy is not one-size-fits-all. It should be tailored to your business model, operations, and risk exposure. Key components include:
- Risk Management Identification
Understand the specific risks AI presents to your business.- Are you worried about inaccurate information?
- Are you concerned about confidentiality or professional tone?
- Are there brand consistency risks?
- Industry-Specific Compliance Requirements
Certain industries (especially those certified under ASI or ISO standards) have specific restrictions regarding the use of AI in contracts, bids, or documentation.- Review industry-specific guidelines.
- Ensure AI usage aligns with certifications and contractual obligations.
- Ethical Use Guidelines
Define acceptable and unacceptable uses of AI within your organization.- Drafting emails, proposals, marketing copy
- Analyzing internal data or reports
- Automating communications with clients or vendors
- Training and Implementation
Educate employees on the AI policy, proper use protocols, and the importance of human oversight.- Conduct initial and ongoing training sessions.
- Include AI policies in your employee handbook.
- Monitoring and Enforcement Procedures
Ensure there are mechanisms in place to monitor AI use and enforce compliance when needed.
Consequences of Not Having an AI Policy
Without an AI policy, your business could face serious consequences:
- Breach of Contract: Improper AI use could result in failed bids or voided contracts.
- Reputational Damage: Public misuse of AI tools could erode trust in your brand.
- Legal Liability: Claims related to misinformation, discrimination, or unethical conduct could arise.
- Employee Confusion: Without clear guidance, employees may unknowingly misuse AI, leaving your business exposed.
How Koegle Law Group Can Help
Navigating emerging technology laws can be overwhelming, especially for busy business owners and HR leaders. Koegle Law Group can:
- Assess your business’s AI risk profile
- Draft a customized AI policy tailored to your industry and operations
- Train your teams to ensure compliance and minimize risk
- Update your employment handbooks and contracts to incorporate AI guidelines
By taking action now, you can protect your business from regulatory surprises and legal exposure in the future.
Final Thoughts
AI policies are no longer optional planning tools — they are fast becoming a business necessity. Whether your company heavily relies on AI or only uses it occasionally, being proactive is your best defense.
Don’t wait for the law to force your hand. Build a strong AI policy today and position your business for success tomorrow.
Need help getting started?
Contact Koegle Law Group today to schedule a consultation and future-proof your operations.
📞 661.362.0813
🌐 https://www.koeglelaw.com
