AI Policy Template for Small Organizations

What’s inside

A complete, customizable AI use policy you can adapt in an afternoon. Covers what employees can and can’t do with AI tools, what data is off-limits, how new tools get approved, and what to do when something goes wrong.

• Plain-English policy text you can copy directly into your handbook
• Approved-tool classification system (Green / Yellow / Red)
• Tool-approval request form
• Data handling guidelines aligned with HIPAA, FERPA, and Fair Housing
• Employee training quick guide
• Incident response procedure (one-page version + detailed version)

Who should use this

Small businesses, nonprofits, municipalities, and educational organizations that need formal AI policy now but don’t have a legal department.

• Organizations 10–250 employees
• Boards asking for an AI policy at the next meeting
• Compliance leads who need a defensible policy under audit

Key outcomes

After using this resource, you’ll be able to:

• Adopt a workable AI policy in under two weeks
• Reduce data-handling risk from informal AI use
• Give staff clear guardrails without slowing them down
• Document responsible AI use in case of compliance review

How to use

Start with the lite version to see scope. Customize the full template by filling in your organization name, your approved tool list, and your incident response contacts. Have your attorney review the final policy before adoption.