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Where to Start With AI? Write a Personal-Use Policy First
Most teams don't know where to start with AI. The best first step involves no new tools: a personal-use policy for shadow AI. Here's what to include.
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Most teams don't know where to start with AI. The best first step involves no new tools: a personal-use policy for shadow AI. Here's what to include.
With everything surrounding AI today, the commonly believed starting point is to find a tool or use case that AI can be applied to. It can be overwhelming and feel like a completely impossible task to accomplish, but there is a better jumping off point: writing a policy for the AI that is already present. It is a $0 investment and helps provide guidance around a major risk.
Employees are already using personal AI models at work. But as companies wait to figure out which tool to adopt, this usage remains completely unrestricted. You don't need an enterprise-wide tool to provide guidance.
Shadow AI is the use of personal, unapproved AI tools for work, without sign-off from IT or leadership. Someone pastes a client email into a free chatbot to rewrite it, or an analyst runs numbers through a tool the company never vetted. Either way, it is unmonitored and unrestricted.
The scale is larger than most leaders assume. In Microsoft and LinkedIn's 2024 Work Trend Index, 75% of workers said they use AI at work, and 78% of them are bringing their own tools rather than using anything the company provided. That figure is even higher at small and medium-sized businesses.
The bigger issue is that people are using these tools without asking for any guidance first.
When a company decides to get serious about AI, the assumption is that the first step is technology. The more useful first step is governing the AI that is already in the building.
A policy needs no budget, so no one has to defend a line item, and no engineering, so nothing sits in a backlog. One person can draft it and circulate it without waiting on permission from several layers of management.
It also does real work. The cost of not having one is well documented. IBM's 2025 Cost of a Data Breach Report found that breaches involving shadow AI carried roughly $670,000 in added cost, and that most organizations still lack an AI governance policy or are only now developing one. KPMG's 2025 research on shadow AI reported that only 41% of employees say their organization has any policy guiding generative AI use at all.
There is a strategic point here too. A policy is the wedge that helps build a clean foundation for AI adoption going forward. Once you can see how people are actually using AI, and once usage is happening in the open, you have the information you need to pick real tools and make a real plan.
A policy people ignore is worse than no policy. It creates the appearance of a guardrail while usage keeps moving further into the dark. The difference between a policy that changes behavior and one that gets skimmed and forgotten comes down to a handful of traits.
It lacks ambiguity. No hedging, and no "use good judgment" standing in for an actual rule. Every line should hold up when read by someone looking for a loophole. Vague policies get interpreted in whatever way is most convenient in the moment, which is the same as having no rule.
It answers the questions people are already asking. "Can I paste this into ChatGPT?" "Do I have to tell the client I used AI?" "Which tools are okay?" If your team is already wondering it, the policy should already answer it, not send them to go ask someone or guess.
It enables more than it forbids. A wall of "don'ts" reads as a ban, and people route around bans. Software AG's research found that 46% of workers said they would refuse to give up their personal AI tools even if their company banned them outright. A policy works better when the safe path is also the easy one.
It is short enough to be read. A one-page document people finish does more than a thirty-page document nobody opens. Length tends to signal legal caution more than clarity, and a page people finish changes behavior more than a chapter they skip.
It is written in plain language. Concrete words over jargon. If someone needs a glossary to follow the policy, they will stop following it.
It has an owner. A living document with a name attached, not a file that goes stale the week after it is published.
Once you know what "good" looks like, here are six items you should include.
Keep it to one page to start. A short document that people actually read and follow does more than a long one that sits unread in a shared drive. You can add detail later, once you see which questions keep coming up.
Communicate it as something that helps people, rather than a crackdown. The framing matters. People who feel policed go quiet and keep using their own tools anyway, which is the exact outcome you are trying to avoid. People who feel supported bring their usage into the open, and that visibility is the whole point.
Make the request path frictionless. If asking to use a new tool takes a week and three emails, people will skip it. If it takes a message to one channel and a same-week answer, they will use it. The easier the sanctioned path, the less shadow AI you have.
Then treat the policy as a first step. Once usage is in the open and you can see what people actually reach for, you have what you need to choose secure tools and build a real plan. That is the point where a small, ownable first move turns into something you can scale across the organization.
Shadow AI is the use of personal or unapproved AI tools for work without the knowledge or sign-off of IT or leadership. It ranges from drafting emails in a free chatbot to running company data through a tool no one vetted. The defining trait is that it happens outside any official oversight.
Yes, and arguably more so. When a company has no tools of its own, employees use their own instead, without any guidance on what data is safe to enter or what has to be checked. A policy is worth writing precisely because the company tools are not there yet.
At a minimum: clearly defined terms, a firm rule against putting company or client data into public tools, a human-oversight requirement, ethical and legal compliance including disclosure, a rule for unapproved tools with a default-deny default, and one named person or channel to ask.
That is for your policy to decide, but the common approach is to allow general use while drawing a hard line at sensitive data. No client information, PII, NDA-covered material, or financials in public tools. Approved, secure tools can be handled separately through a proper rollout.
Assign one named person or channel with a clear point of contact. Whoever owns it answers questions, reviews requests for new tools, and keeps the document current. When ownership is vague, the policy goes stale and people go back to figuring it out on their own.