An AI Policy is Now a Business Essential
Artificial intelligence is no longer a future-facing buzzword. It’s already transforming how businesses operate—automating workflows, generating insights and powering technology. But with all that power comes growing legal, ethical and reputational risks.
Artificial intelligence is no longer a future-facing buzzword. It’s already transforming how businesses operate—automating workflows, generating insights and powering technology. But with all that power comes growing legal, ethical and reputational risks.
For small and midsize businesses and funds, the pressure is on to develop clear, defensible AI policies that govern how these tools are used internally and externally. Waiting too long isn’t just a compliance risk—it’s a business risk.
Why AI Policy Development Is Mission-Critical
1. Regulators are paying attention. Governments around the world are moving fast. The EU’s AI Act is already passed. U.S. regulators, including the Federal Trade Commission and U.S. Securities and Exchange Commission, are sharpening their focus on AI-related disclosures, data usage and fairness. Funds using AI in investment analysis or client interactions face added scrutiny.
2. Internal misuse can create external fallout. From generative AI tools producing confidential leaks to biased algorithms triggering lawsuits, the wrong use of AI—intentional or not—can cause real damage. Without a policy, you leave room for interpretation, which can be precarious.
3. Investors and clients are asking questions. Whether you're a fund manager or a founder, chances are your stakeholders want to know how you’re using AI. Are you transparent? Are you compliant? Do you know how your vendors are using AI? These are no longer theoretical questions.
4. Employees need boundaries. Your people are already using AI. ChatGPT, Google Gemini, GitHub Copilot—it’s happening with or without your input. A strong policy gives structure: what tools can be used, for what purposes and with what approvals.
What a Good AI Policy Should Cover
A solid AI policy isn’t just a single page with vague statements about innovation. It should address:
- Use case approval: What kinds of AI use are permitted and by whom?
- Data handling: How is data managed and protected once fed into AI systems?
- Vendor and tool vetting: Are you checking third-party AI tools for compliance and risks?
- Bias and fairness: What steps are taken to prevent discriminatory outcomes?
- Human oversight: Who’s accountable when AI makes decisions?
The AI policy should also be flexible—able to evolve as laws change and your use of AI matures.
How Agile Legal Can Support
Agile Legal helps businesses and funds cut through the complexity and create AI policies that are practical, tailored and defensible.
Our process includes:
- Assessing your current and planned AI use cases.
- Identifying relevant regulatory risks and industry expectations.
- Drafting policies that align with your operations, risk tolerance and growth plans.
- Supporting stakeholder buy-in with clear documentation and rationale.
Whether you’re just starting to experiment with AI or you're already deploying it across your organization, we can help ensure your legal foundation keeps up.
The Bottom Line
AI is already shaping how your business operates—and how it's perceived. Without a clear, enforceable policy, you’re exposed to legal, operational and reputational risks. As regulatory scrutiny intensifies and stakeholder expectations rise, the question isn’t if you need an AI policy—it’s how fast you can get one in place.
Don't wait for a compliance issue to start thinking about AI risk. Book a consultation with Agile Legal about developing a policy that protects your business and empowers your team.
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