Creating Custom Company Policies with Generative AI: A Step-by-Step Guide

TL;DR: Generative AI can streamline the process of creating company policies, especially for small and mid-sized businesses that may struggle with policy development. While using AI for this purpose may seem controversial, it can significantly improve efficiency when used with proper human oversight. This article guides you through the steps of using AI to craft tailored policies, emphasizing the importance of always having a human in the loop.

Introduction

Using generative AI to create company policies is likely a controversial topic for many businesses. However, small and mid-sized companies often struggle with the time and resources needed to develop comprehensive policies, and this approach offers a way to streamline and shorten the process. While I would never recommend relying solely on AI without human oversight, I encourage you to read on. You’ll discover how AI can be a powerful tool to make policy creation more efficient and effective, all while ensuring that the final product aligns with your company’s values and needs.

All companies face stiff competition, regulations, ethical considerations, and technological advancements. Guiding your company to manage these situations consistently requires having clear company policies.

Crafting a robust and comprehensive policy is essential for ensuring that your organization remains compliant, ethical, and aligned with its core values. But where do you start, especially when developing a policy that might be unfamiliar or nuanced? Enter Generative AI—an innovative tool that can help you create a tailored policy to meet your company’s specific needs.

Step 1: Define the Policy You Want to Create

The first step in using Generative AI to develop a policy is to clearly define the type of policy you need. For example, you might be interested in creating a privacy policy for your company website, which would outline how you use the data and information that website visitors provide directly or indirectly. By simply prompting the AI with your intent—“I want to create a [policy description]”—the AI can provide you with initial guidance on how to proceed. Just replace ‘policy description’ with the type of policy you want to create, such as “Privacy Policy for our Company Website” or “Non-discrimination Policy.”

Depending on which model you’re using (Gemini, Claude, OpenAI, etc.) and the policy you’re asking to be created, the model may or may not provide an example policy. So just ask.

Step 2: Obtain a Sample Policy with Placeholders

Understanding that many people may not be familiar with what a complete policy looks like, the AI can provide you with a sample policy, complete with placeholders for your company’s specific details. This sample policy serves as a template, giving you a clear structure to follow and customize. For example, the AI might generate a policy outline that includes sections on ethical considerations, data security, content ownership, and more, with placeholders like [Company Name] and [Designated Person/Team] to be filled in as you develop your policy.

Step 3: Identify Key Areas and Initial Questions

Once the AI understands the type of policy you’re aiming to create, it can help you identify the key areas that need to be covered. In the case of a privacy policy, these might include ethical considerations, data privacy and security, usage guidelines, and more. The easiest approach is to ask the AI, “What questions do you need to ask me to generate the privacy policy?”

For example:

• Which departments or teams will be using Generative AI tools?

• Will the policy cover the entire company, or will it be tailored to specific areas?

• What are the core values of your company that should guide the use of Generative AI?

These questions serve as the foundation for building a policy that is both comprehensive and aligned with your company’s objectives.

Step 4: Request Additional Guidance and Tailoring

As you work through the initial questions, you might realize that you need more specific guidance or that certain sections of the policy require further tailoring. For instance, you might ask the AI, “What measures should be taken to ensure privacy?” or “How will the company ensure transparency and accountability in handling private information?” The AI can then provide more detailed questions and potential considerations to address these issues effectively.

Step 5: Generate Comprehensive Questions with Multiple-Choice Answers

Even with extra guidance, you might find it challenging to understand what goes into a policy. The solution is to ask the AI to generate a full list of questions to cover all aspects of the policy. Additionally, the AI can provide multiple-choice answers for each question, allowing you to choose the options that best align with your company’s needs. For example, you might say, “These questions are difficult for me to answer. For each question, can you provide answers so I can pick the one that most aligns with my needs?”

For instance, on a question about cookies, the AI might offer the following options:

Cookies and Tracking:

• Do you use cookies or other tracking technologies on your website?

• A) Yes, for Site Analytics

• B) Yes, for Targeted Advertising

• C) Yes, for Enhancing User Experience

• D) No, we do not use cookies or tracking technologies.

• E) [Other]

Step 6: Answer the Questions and Generate the Policy

Systematically go through each of the questions the AI asks and provide your answers. Then finish by saying, “Generate an updated policy based on my answers.” With a simple command, the AI will compile your responses into a coherent, customized policy.

Step 7: Always Have a Human in the Middle

But you’re not done yet. The AI has provided you with the first draft of a policy that you can review and determine if it’s what you really want.

However, just because the AI generated a result doesn’t mean it’s perfect. AI systems are fallible. Always consult with professional help, such as an attorney or regulator, before circulating the policy with stakeholders for additional editing and tailoring to your specific situation. Only after this thorough review should the policy be signed into company protocol.

Conclusion: Empowering Your Company with AI-Driven Policy Development

Using Generative AI to develop and create a policy for your company not only streamlines the process but also ensures that the policy is tailored to your specific requirements. From defining the policy type and identifying key areas to providing sample templates and comprehensive questions, AI can guide you every step of the way. By leveraging AI’s capabilities, you can confidently craft a policy that addresses the complexities of today’s business environment, ensuring that your organization remains compliant, ethical, and forward-thinking.

Generative AI is a powerful tool that can help you create any policy your company needs, whether it’s related to AI usage, data privacy, employee conduct, or any other area critical to your business. By following the steps outlined above, you can harness the power of AI to develop a custom policy that protects your company and supports its long-term success.