AI ACCEPTABLE USE & GOVERNANCE POLICY

1. Purpose

This Policy establishes the principles, responsibilities, and controls for responsible use of artificial intelligence (“AI”) and machine learning (“ML”) technologies by [ORGANIZATION NAME].

2. Scope

This Policy applies to all employees, contractors, vendors, and partners who develop, deploy, procure, or interact with AI Systems on behalf of [ORGANIZATION NAME].

3. Definitions

• AI System: Software that uses machine learning, statistical techniques, or logic-based approaches to generate outputs such as predictions, recommendations, or decisions.
• High-Risk AI: Systems that may have a significant impact on individuals’ rights, safety, or finances, consistent with regulatory classifications.
• GPAI: General-purpose AI models or foundational models with broad applicability.
• Human-in-the-Loop: A control requiring human review or intervention before an AI output is acted upon.

4. Governance Structure

4.1 AI Steering Committee. [ORGANIZATION NAME] maintains an AI Steering Committee responsible for approving AI initiatives, monitoring compliance, and reporting to executive leadership.
4.2 AI Product Owner. Each AI System has an owner accountable for lifecycle management, documentation, and performance monitoring.
4.3 Risk & Compliance. The Legal/Compliance team conducts impact assessments, ensures regulatory alignment, and maintains the AI inventory.
4.4 Technical Leads. Engineering/Data Science teams implement controls, testing, and monitoring.

5. Acceptable Use Principles

• Lawful & Ethical Use: AI Systems must comply with applicable laws, contractual commitments, and ethical guidelines.
• Purpose Limitation: Use AI only for approved purposes documented in the AI inventory.
• Transparency: Provide meaningful information about AI involvement to affected individuals when required.
• Human Oversight: Maintain appropriate human review based on risk tier.
• Fairness & Non-Discrimination: Conduct bias testing and mitigation for High-Risk AI.
• Security & Privacy: Protect Personal Data and sensitive business information throughout the AI lifecycle.
• Accountability: Assign clear ownership and escalation paths for issues.

6. Prohibited Uses

The following uses are prohibited unless expressly authorized and lawful:
- Real-time biometric identification in public spaces.
- Emotion recognition or inference from sensitive data without explicit approval.
- Automated decision-making that materially affects employment, credit, housing, or healthcare without documented assessments.
- Generation or dissemination of deceptive or misleading content (deepfakes) without disclosure.
- Training models on unlawfully obtained or non-compliant datasets.

7. AI Lifecycle Controls

7.1 Ideation & Intake. Submit AI projects through the intake process, including purpose, data sources, and expected outputs.
7.2 Risk Classification. Assign each AI System a risk tier (Minimal, Limited, High) with required controls per Appendix A.
7.3 Impact Assessments. Conduct AI Impact Assessments (AIIA) before deploying High-Risk AI, referencing regulatory frameworks.
7.4 Testing & Validation. Perform pre-deployment testing, including accuracy, robustness, bias, and cybersecurity assessments.
7.5 Deployment & Monitoring. Monitor performance metrics, drift, and incident reports. Maintain logs for audit.
7.6 Change Management. Reassess risk when models are retrained, fine-tuned, or when data sources change.
7.7 Decommissioning. Document steps for retiring AI Systems, including data retention and access controls.

8. Data Management & Privacy

• Use Privacy Impact Assessments when processing Personal Data.
• Apply data minimization, anonymization, or pseudonymization where feasible.
• Respect consent, opt-out, and sensitive data requirements for applicable jurisdictions.
• Coordinate with the Data Protection Officer for cross-border transfers.

9. Vendor & Third-Party Management

• Perform due diligence on third-party AI vendors, including security reviews and contractual safeguards.
• Require vendors to provide documentation on model training data, testing, and compliance.
• Include audit and termination rights in vendor agreements.

10. Incident Response & Reporting

• Report AI incidents, such as model failures, bias findings, or security events, within [HOURS] hours to the AI Steering Committee and Security Team.
• Investigate incidents, implement corrective actions, and document lessons learned.
• Notify regulators or affected individuals if legally required.

11. Training & Awareness

• Provide annual training on responsible AI use to all relevant personnel.
• Offer specialized training for developers, product owners, and compliance reviewers.
• Maintain records of training completion.

12. Policy Violations

Violations of this Policy may result in disciplinary action up to and including termination of employment or contracts. Serious violations may be referred to regulatory authorities.

13. Review & Updates

The AI Steering Committee will review this Policy at least annually, or upon significant regulatory changes, technology updates, or incidents.

14. Regulatory Milestones Tracking

• Monitor EU AI Act obligations already in force (effective August 1, 2024) and prepare for staged application dates, including prohibitions and literacy requirements (February 2, 2025) and general-purpose AI duties (August 2, 2025).
• Update this Policy and related controls ahead of later EU AI Act milestones (2026–2028) and analogous global regulations.
• Record compliance status and remediation plans in the AI regulatory register maintained by the AI Steering Committee.

Appendix A – Risk Tier Controls

Provide a table mapping risk tiers to required controls (e.g., human oversight, DPIA/AIIA, legal review, transparency notices, technical safeguards).

Appendix B – AI Inventory Template

Include fields for system name, owner, purpose, risk tier, data sources, jurisdictions, and status.

Appendix C – AI Impact Assessment Checklist

Outline required questions covering purpose, legal basis, stakeholders, risks, mitigation measures, monitoring plan, and sign-offs.

[// GUIDANCE: Publish this Policy on internal knowledge bases and require acknowledgments annually.]