Creating an AI Usage Policy for Startups [+Template]

Introduction

Artificial Intelligence is the most exciting and ubiquitous new technology of the 21^st century. Following the 2022 release of ChatGPT, this technology has spread like wildfire across the business world and into our personal lives as well. According to surveys, 75% of companies are testing AI tools, 65% are already using them internally, and 31% are already using these tools for external consumption.

But how safe and reliable are these tools, and can AI be doing more harm than good to the people and businesses that use it? Diverse legal and ethical issues surround the use of AI, and this behooves businesses to implement rules and guidelines for how they will use AI in both their work and products. For startups, AI can offer tremendous advantages but also contain substantial risks.

That’s why it’s critical for startups to formulate AI usage guidelines and rules. These policies should apply to employees as well as any products in development to ensure the safety, reliability, and appropriate use of this incredible technology.

Benefits of AI tools

We’re only in the early days of AI use, but the vast benefits of this technology can already be seen. AI can handle massive amounts of data efficiently, solve complex problems, and make decisions rapidly. It’s perfect for completing repetitive tasks effortlessly and can automate processes that were previously manual and tedious. It also reduces human error. Most companies focus on the predictive analysis that AI tools can provide, as well as their ability to learn and innovate.   

For startups in particular, these characteristics help companies improve operational efficiency, reduce wastage, create new ideas, save money, and improve development speed for new products.

Risks of using AI

While AI sounds like a panacea, we need to remember the many hazards that using AI can pose. And there are many.

While many pundits warn of a Matrix-style global takeover of intelligent machines, more pressing issues already exist in relation to AI tools. These include privacy violations, deep fakes, and data leaks, which can harm individuals and clients. Lack of control and oversight can mean that AI tools are misused in malicious ways. Societal impacts like inequality could be created due to bias or unequal accessibility. At the same time, algorithmic bias can occur due to bad data, and this can lead to accuracy risks that could lead businesses astray.

Another significant risk when using generative AI is “hallucination.” This is when an AI tool manufactures “facts” that aren’t real. In this episode of Leveraging AI, Isar Meitis recounts the story of how an attorney arguing for a case in the US referenced six different cases that did not exist. He had used a popular AI tool in his research and the LLM concocted the case.

The list goes on, and that’s why any startup using AI tools internally or externally should develop AI usage guidelines to mitigate these risks.

Why do you need an AI usage policy?

We’ve already seen the incredible benefits of AI technology and also some of the wide-ranging risks it poses. It’s crucial to have protocols in place that allow your organization to take advantage of AI’s sweeping benefits while protecting your employees and your business.

Most companies are behind the tech. A recent study by IBM of surveyed executives cites that 40% of the global workforce — over 1.4B people — will need to re-skill due to the implementation of AI. Without clear guidelines, organizations will struggle to operate in an ever-changing environment and try to solve problems as they arise. However, this causes them to overlook risks or respond slowly to them. In many cases, their responses are inconsistent and imprecise because they lack goals and guidance.

Using AI tools and deploying AI-based products requires you to navigate numerous challenges. To compete effectively, every startup needs to leverage AI tools while still protecting employees, users, and society in general.

AI technologies can mislead, misinform, and manipulate information. It can collect and leak sensitive information which could affect your employees. AI may also leak data, causing privacy or competition concerns. It needs to follow existing laws, especially related to intellectual property, and if it doesn’t, that can invite lawsuits that could damage your business. And AI tools can have a societal impact by operating with bias and exclusivity.

AI usage guidelines can help your organization navigate these treacherous waters by giving all stakeholders clear rules and directions for use. These protocols will help you to avoid litigation, keep the trust of your customers, and maintain the perception of the value of your product or brand.

Base guidelines on core principles

When you need to create guidelines for AI usage in your organization, the best place to start is your core principles. These can inform the way that you interact with and even develop AI tools so that your use will be responsible, ethical, and accountable. HubSpot’s own guiding principles, closely mirrored by those of tech giants like Microsoft and Google, inform our rules for AI usage both among our employees and in our product development. 

Security 

Your guidelines need to protect your own employees as well as your customers and their customers from harmful or malicious uses of AI tools. This includes attacks and vulnerabilities that could hurt your business.

Privacy 

AI tools can collect personal information, and data leaks can damage your company’s reputation as a safe and reliable product provider. Privacy needs to be woven into all AI guidelines to comply with privacy protection laws.

Accountability 

AI tools need to be monitored by humans to ensure they’re being used responsibly as well as effectively.

Fairness & Inclusivity 

AI tools should treat everyone fairly and without bias. They should also be accessible by all equally, and this can be achieved by focusing on the inclusivity and fairness of their development as much as their use. 

“AI has the potential to exacerbate potential societal inequities.”
Hanna Wallach, Partner Research Manager, Microsoft Research

Transparency 

It has to be clear what AI systems are doing and how they collect, process, and use data. This can ensure the accuracy and reliability of AI tools and their products.

Growth

As a tool, AI is extremely useful and beneficial for businesses. Responsible and ethical uses of AI should be explored and developed.

Steps for creating AI usage guidelines

When you’re ready to produce your startup’s AI guidelines, here are ten steps you can follow to plan, create, and implement your protocols.

1. Create a committee

Choose a group to lead the development of your AI usage policies. This committee should include company leadership, may even include board members, executives, and department heads, as well as relevant technical experts. They should have a foundational understanding of AI and its benefits and risks. 

2. Define your objectives

Identify the ways in which your startup will use AI in your operations or develop AI technologies. Your objectives could include increasing efficiency, innovating, and improving the customer experience.

3. Establish your core principles

Determine how your company’s core principles will relate to AI use and development. These principles will inform the ethical foundation of your AI usage policy.

4. Research the regulations

Learn about the laws that govern AI tools in your jurisdiction and ensure that your guidelines are compliant with these regulations. Work to predict the direction of legislation to ensure future compliance as much as possible.

5. Identify risks

Determine and assess the risks that implementing AI tool usage and development can have for your organization. Focus on bias, security, and privacy.

6. Develop best practices

Create protocols for using AI while mitigating risk and balancing human and artificial intelligence fittingly. Indicate who will use it and why. You should set rules for whether or not AI can be used in the workplace, and if so, which tools specifically are allowed and which aren’t.

7. Set accountability

Determine who will be responsible for which stages of use and development of AI tools in your organization, as well as who will monitor their use. Create processes for reporting and governance so that your usage guidelines are followed as intended.

8. Safeguard transparency

It’s crucial to be able to understand and explain what your AI systems do and how they do it. The data your AI tools use and its source must be understood in order to be properly monitored.

9. Design monitoring and review procedures

These procedures will enable you to monitor how your AI systems are performing and following ethical standards. You should also regularly evaluate your guidelines to ensure they remain effective at mitigating risk. 

10. Implement your guidelines

When the guidelines are complete, they need to be communicated to all stakeholders clearly so all understand them. Education and training may be necessary for all employees to learn how to use AI ethically in their work.

AI Usage Guidelines for Startups

AI tools hold untold benefits but also carry great risks for startups. Understanding these risks and how to mitigate them by focusing on your organization’s core principles is crucial to the successful use and development of AI tools. By establishing clear guidelines for your company, you’ll set yourself up to leverage this emerging technology safely and responsibly while mitigating the risks that it can cause to your business.

Create your own AI usage policy and guidelines with our comprehensive template. (click below)