Shannon Faulkner, Consultant at Auxillias Ltd looks at the fast moving technology shift that is Artificial Intelligence (AI). AI can streamline processes, cut costs, and open new opportunities, but it’s not just about the tech, it’s making sure it doesn’t create more problems than it solves. That’s where an AI policy comes in.
First things first: no, you can’t just ask an AI bot to write your AI policy. It might give you a decent draft, but that’s like asking the fox to design the henhouse security plan. A proper policy needs to be owned by the business and tailored to its real risks and opportunities.
At its core, a good AI policy should cover three things: how AI is being used, who’s responsible for it, and what the boundaries are.
- Usage: Spell out where AI can and can’t be used. For example, in marketing, what’s acceptable? In customer communication, who checks the AI’s outputs before they reach a client? In operations and finance, is AI modelling scenarios or managing processes?
- Responsibility: Decide who owns the technology and who reviews its outputs. Can staff use tools like ChatGPT, and if so, under what conditions? Clear rules matter - especially when customer or business data is involved.
- Boundaries: Define what happens when AI makes mistakes. Because it will. Having escalation and review processes in place ensures issues are caught early and lessons are learned.
Compliance, fairness, and data use must also be addressed. GDPR obligations still apply. And businesses should regularly test for bias to make sure AI-driven decisions are fair and defensible.
In a regulated environment, waiting for the regulator to provide AI guidance is a mistake. Regulators respond after problems occur - they don’t prevent them. That means businesses need to set their own boundaries now.
But unregulated firms aren’t off the hook. With no official handbook to lean on, responsibility sits squarely with the operator. Trying to run a business and keep up with AI developments is almost impossible without external help. The pace of change is relentless, and without specialist input, businesses risk falling behind or adopting tools in ways that store up bigger problems down the line.
These aren’t futuristic applications. They’re practical, real-world tools that can save time and improve margins today.
The most powerful use of AI starts with people. Businesses should be encouraging employees to experiment with AI, even for personal tasks, so they get comfortable with the technology. Investing in training, subscriptions, and time to explore pays off when staff bring that mindset back into the workplace.
AI isn’t about replacing people. It’s about helping them achieve more with less. The businesses that create space for staff to learn and apply AI effectively will be the ones that move faster and adapt better.
Businesses need to keep growing and for that to happen, people need to find ways to become more efficient and add more value over time. The smart question to ask your team is: what do you need in order to be 40% to 50% more productive next year? Because that’s the kind of shift that justifies real growth – for them and for the business.
If customers complain about AI, it’s usually because an interaction felt impersonal or automated. The solution isn’t to ditch the technology, but to explain its role and to make sure escalation to a human is always an option. AI should handle routine tasks, just like with vehicle prep, a quick valet is fine most of the time, but the unusual or sensitive cases need a personal touch.
AI doesn’t understand tone or urgency. It treats every word the same. So even when it sounds confident, it can completely miss what matters most in the conversation.
Finally, remember that compliance isn’t just about ticking boxes. It’s about alignment - making sure AI is being used in ways that are fair, transparent, and genuinely in the customer’s interest. If businesses keep people at the heart of their AI decisions, they’re far more likely to stay on the right side of both regulation and customer trust.
AI is moving at pace, and firms can’t afford to wait and see. The businesses that thrive will be those that set clear rules, invest in their people, and use AI where it adds real value. A robust AI policy isn’t about stifling innovation - it’s about making sure AI works for the business, not against it.
