How are your staff using AI? Why you need a company AI policy

As generative AI tools like ChatGPT and Gemini continue to revolutionize the way we work, offering benefits such as increased efficiency and productivity, their adoption has seen a significant surge in workplaces throughout 2024, with 75% of employees globally reporting that they used AI tools at work, according to Gartner. However, less than 40% of companies had specific policies and guidelines in place to govern the use of generative AI tools, creating significant risks and highlighting the need for clear oversight and management.

Employees often use these tools for tasks such as summarizing documents, creating reports, or drafting emails. While these tools improve efficiency, they can also retain user input to train their models. This means sensitive company data—such as sales forecasts, customer details, or intellectual property—could be stored on external servers, creating a potential for leaks.

For instance, in mid-2024, a prominent Fortune 500 retailer discovered that its staff had inadvertently uploaded sensitive sales data, including customer preferences and sales forecasts, to ChatGPT in order to generate targeted marketing plans, ultimately putting the company's competitive advantage at risk.

These risks are further complicated by the complex regulatory landscape, which includes regulations such as GDPR, CCPA, and HIPAA, to name a few. Without clear policies and guidelines in place, employees may unknowingly violate these regulations, resulting in severe consequences, including fines and reputational damage.

The importance of a generative AI policy

The lack of clear AI policies has already caused significant challenges across industries. A 2024 McKinsey report revealed a 32% increase in AI-related data breaches last year, exposing businesses to financial penalties, reputational damage, and operational disruptions. These risks highlight the urgent need for businesses to implement robust AI policies.

A comprehensive Generative AI policy mitigates these risks by providing clear guidelines on which tools are approved, how data is shared, and the safeguards required to comply with regulations like GDPR. Without such policies, businesses risk making costly, unintended mistakes with serious consequences.

For example, in 2024, a UK marketing agency was fined £1.2 million by the ICO in 2024 for using an unapproved AI tool to process customer data. This breach not only resulted in substantial fines but also damaged customer trust and long-term brand reputation.

Beyond compliance, a strong AI policy safeguards your competitive advantage. Proprietary data uploaded to public AI tools could inadvertently train models used by competitors, risking exposure of your most sensitive intellectual property. A leading European pharmaceutical company learned that the hard way in 2024 when confidential R&D data was shared with a U.S based AI platform, potentially exposing millions of dollars’ worth of intellectual property. With a clear AI policy, businesses can ensure their proprietary information stays secure and avoid such costly mistakes.

The benefits of a generative AI policy don’t stop at compliance and security. It demonstrates to your customers, stakeholders, and the market that your business is committed to ethical and responsible AI usage. A 2024 Deloitte survey found that 67% of buyers are more likely to work with companies that have strong AI governance practices.

A well-crafted AI policy not only protects your business but also helps you unlock the full potential of AI tools. With clear guidelines, employees can leverage AI to enhance productivity, foster innovation, and drive growth, all while minimizing the risks of security breaches and regulatory violations.

How is relaxAI different?

With its strong focus on data privacy and security, relaxAI is empowering businesses to unlock the full potential of AI, without compromising on sensitive information or regulatory compliance. Its paid plans allow users to control their data, with consent required before it is used. Users can easily withdraw consent or delete their data at any time from their dashboard. This sets relaxAI apart from other AI tools, which may use data without explicit consent. relaxAI's commitment to data privacy and security ensures that sensitive information is protected.

With relaxAI, businesses can confidently embrace the power of Generative AI without sacrificing privacy or compliance.

Why act now?

Generative AI tools are becoming integral to business operations, but they also introduce risks that must be addressed. In the coming months, stricter enforcement of regulations like GDPR and the EU AI Act will likely leave unprepared businesses vulnerable to penalties and reputational damage.

A Generative AI policy is no longer optional—it’s a business necessity. By implementing clear guidelines and adopting tools like relaxAI, businesses can protect their data, ensure compliance, and build trust with customers.