Think Your Company Isn’t Using AI? Think Again and Here’s Why You Need a Policy Now

Even if your company hasn’t formally deployed AI tools, your employees almost certainly have. That opens your organisation up to risks you may not even see until it’s too late. Welcome to the age of Bring Your Own AI (BYOAI). As with other unauthorised “shadow IT”, employees are using powerful, generative AI tools like ChatGPT, Google Gemini, or Claude to boost productivity. They’re summarising documents, writing emails, generating code and creating slide decks all outside formal oversight.

At first glance, this appears to be a positive trend, characterised by increased efficiency, faster output, and more empowered staff. But when left unmanaged, BYOAI becomes a hidden source of data leakage, IP exposure, compliance risk and even reputational damage. If your organisation lacks a formal AI policy, now is the time to act, not just for governance and safety but because a well-defined policy is the critical first step to building an AI management system (AIMS) and aligning with the EU AI Act.



Why this matters and what your next steps should be.

Since the release of ChatGPT in late 2022, the explosion of generative AI tools has been unstoppable. These tools are:

• Embedded in Microsoft 365 (Copilot), Adobe products, Notion, Canva, Slack, and Google Workspace.
• Freely accessible online and on mobile devices.
• Positioned as personal assistants, content creators, coding aides, and idea generators.

As a result, employees are naturally gravitating toward them, especially when trying to meet tight deadlines or juggle multiple tasks.

This is BYOAI in action: when employees use AI tools on their initiative, without organisational oversight or approval.

It’s often well-intentioned. But it comes with a range of risks:

• Data loss: Employees may paste sensitive information into third-party tools without realising it’s being retained or shared.
• Intellectual property exposure: Proprietary content used to train models may be used again elsewhere and accessed with a simple prompt.
• Compliance breaches: Uploading personal data or regulated content to an unsanctioned AI tool could violate GDPR, the EU AI Act, or sector-specific regulations.
• Lack of traceability: With no audit trail, accountability evaporates if something goes wrong.

And here’s the critical point: banning BYOAI doesn’t work. As MIT Sloan researchers have shown (MIT Management Review) employees always find another way, either by using personal devices or unsanctioned accounts. You push the risk underground.

Why Every Organisation Needs an AI Policy — Now

The most powerful way to address this risk isn’t prohibition. It’s preparation.

A formal, organisation-wide AI policy provides:

• Clarity on what’s allowed and what isn’t.
• Guardrails for responsible AI use, particularly concerning sensitive data.
• Standards for evaluating AI tools before adoption.
• Procedures for escalation, reporting and exceptions.
• Training guidance to build internal AI literacy.

In short, a policy transforms AI from a scattered, risky practice into a governed, value-aligned part of your business operations.

This is why an AI policy isn’t just helpful — it’s foundational. It’s the first step in building a structured AIMS, and it gives you the visibility, accountability, and oversight that regulators will increasingly expect.

AI Policy and the EU AI Act

The EU AI Act, entering into force in 2025 and applying in stages through 2026 and beyond, introduces specific obligations for organisations that deploy or distribute AI systems. These include:

• Risk classification and management for AI use cases.
• Transparency obligations, especially for generative AI.
• Human oversight, documentation, and incident logging.
• AI literacy and training requirements.

Even if you don’t think your organisation is subject to the Act today, that may change fast as supply chains, vendors and digital services become more AI-driven.

But here’s the good news: having a robust AI policy today positions you well for future regulation, it shows

• Regulators that you are proactively managing AI-related risks.
• Supports internal audits and documentation practices.
• Demonstrates responsible use, transparency and accountability.
• Forms the basis for an AI impact assessment — required for higher-risk applications.

Most importantly, it gets you out of reactive mode and into a proactive, strategic, governance-ready thinking.

Final Thought: Policy First, Then Progress

In many ways, managing AI today is where cybersecurity was 15 years ago: a fast-moving, cross-functional domain where policy maturity lags behind technological adoption.

That’s why a clear, pragmatic AI policy is your first and most important move. It empowers your teams, protects your data, aligns you with regulation and positions your organisation to harness AI’s full potential.

Whether you’re an SME just beginning your AI journey or a mid-sized firm with early adopters using tools under the radar, the time to act is now.

Ready to Take Control of AI in Your Organisation?

We’ve created a FREE AI Policy Template designed to help you manage BYOAI, reduce risk, and align with upcoming EU AI Act requirements.

👉 Download your free template here [Insert Landing Page Link]

Equip your organisation with the right foundations before regulators (or risks) come knocking.