Free AI Usage Policy Template — Generate a Company Policy in Minutes
Walk through each section of a real AI policy, tailor it to your company, and download it in minutes. Free, no signup needed to start.
Structured around the same framework used by the Australian Government's AI Policy Guide
Section 1 of 7 — Purpose
What is this policy for?
Organisation name
Which of these aims apply?
All are on by default. At least one must remain selected.
Policy preview
[Organisation name] AI Usage Policy
Version 1.0 — May 2026
Purpose
The [Organisation name] AI policy establishes principles for the ethical, responsible and effective use of AI systems. It ensures alignment with our mission and values. This policy aims to: • Protect the rights of stakeholders • Support AI use to enhance service delivery • Ensure transparency in our AI practices • Provide a risk framework for AI systems • Engage and empower our staff
Scope
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Accountability
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Data handling
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Human oversight
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Tool screening and register
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Policy review
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Policy anatomy
What goes in an AI usage policy?
A complete AI usage policy covers eight things. Most free templates online cover three or four. Here's what a production-ready policy actually needs.
| Section | What it covers | Why it matters |
|---|---|---|
| Purpose01 / 08 | What the policy does and why it exists. One sentence: it sets out how the company uses AI tools responsibly — what's allowed, what isn't, and who's accountable. | Without a stated purpose, the policy has no anchor. Every other section flows from it. |
| Scope02 / 08 | Who it applies to (all staff, contractors, volunteers) and what counts as an AI system. Included: machine learning models, generative AI tools, predictive analytics, chatbots that generate their own responses. Excluded: standard spreadsheet formulas, rule-based automations, traditional BI dashboards. | A policy with no defined scope has gaps. Contractors and vendors are often the blind spot. |
| Approved and restricted tools03 / 08 | The company's AI register: the full list of tools with allow, deny, or watch decisions. This is a living list, not a one-time document. | Most data incidents happen with tools nobody officially approved. This section makes the approved list explicit. |
| Data handling rules04 / 08 | What company data cannot go into AI tools: customer data, personally identifiable information, financial records, and unpublished IP should not be entered into any public-facing AI tool. | Employees often paste sensitive data into AI tools without knowing it violates policy. This section removes ambiguity. |
| Accountability — who owns what05 / 08 | Every AI system needs a named owner before it's adopted. That person is responsible for the tool's outcomes, risks, and compliance with this policy. | When something goes wrong with an AI tool, "everyone owns it" means no-one does. |
| Employee responsibilities06 / 08 | Three obligations: complete required AI training, review AI outputs before acting on them, and report any unexpected AI behaviour or incident. | Individual obligations make the policy enforceable and defensible. |
| Shadow AI07 / 08 | Any AI tool used at work that hasn't been reviewed and approved. The risk is that company data leaves with no audit trail, no accountability. State the process for getting a new tool approved. | Without a clear request process, employees use unapproved tools by default. |
| Review cadence08 / 08 | Annual minimum. Three triggers for an out-of-cycle review: a significant AI incident, a new impactful AI technology, or a change in relevant law or regulation. | A policy written in 2024 does not cover the tools your team will use in 2025. |
The problem with templates
Why a static AI policy template isn't enough
The AI landscape changes week to week. A policy written today covers today's tools — not the ones your team will be using in 6 months.
Policy rot is the real risk. 77% of employees have pasted company data into AI tools using personal accounts. An outdated policy doesn't protect you from this.
The solution isn't to rewrite the policy every month. It's a policy that regenerates itself when the landscape changes.
| Feature | Free generator | greenlaine |
|---|---|---|
| Custom AI usage policy | ✓ | ✓ |
| PDF download | ✓ | ✓ |
| Auto-updates when landscape changes | — | ✓ |
| Live AI Register (tool catalogue) | — | ✓ |
| Regulatory radar | — | ✓ |
| Employee playbook | — | ✓ |
| Price | Free | £49 / month |
FAQ
Frequently asked questions
Do I need an AI policy for my company?+
Yes, if your employees use any AI tools. Even one person using ChatGPT on a work task creates data handling and accountability questions your company should have answered in writing before something goes wrong.
What is an AI acceptable use policy?+
A document that sets out how your company uses AI tools responsibly: what's allowed, what isn't, who's accountable for each tool, and how you handle data.
What should an AI policy include?+
Eight things: purpose, scope, your approved tool list, data handling rules, accountability roles, employee responsibilities, a shadow AI process, and a review cadence. The generator on this page covers all eight.
Is a ChatGPT policy the same as an AI policy?+
No. A ChatGPT policy only covers one tool. A proper AI usage policy covers every AI system your team touches — Copilot, Gemini, Cursor, Midjourney, and whatever launches next month.
What counts as an AI system under an AI policy?+
Machine learning models, generative AI tools, predictive analytics, and chatbots that generate their own responses. Standard spreadsheet formulas, rule-based automations, and traditional BI dashboards are not AI systems.
How often should I update my AI policy?+
At minimum once a year. Three things should trigger an immediate out-of-cycle review: a significant AI incident at your company, a new AI tool that materially changes what's possible, or a change in relevant law or regulation.
What is shadow AI?+
Any AI tool used at work that hasn't been reviewed and approved. The risk is that company data, customer data, or IP leaves the building with no audit trail and no accountability.
Who should own AI governance at a mid-market company?+
At minimum, one person should be the AI policy owner — accountable for the policy itself — and every AI tool in use should have a named system owner. In a 50–200 person company, this is often the Head of Operations or Head of IT.
Can I use a free template for my AI policy?+
Yes, as a starting point. You should still have a lawyer review it before it becomes a formal company document — but getting the structure right first means that review takes 30 minutes, not three hours.