AI Policy as a Tool for Safe Innovation
- Katri Aarnio
- 4 days ago
- 3 min read
Artificial intelligence has become an everyday reality for many organizations. Some companies are already implementing their AI strategies systematically, while others are only at the beginning of their journey. In practice, AI is now widely used across various functions — both through company-approved tools and those independently adopted by employees.
Many companies are still without a unified set of AI usage guidelines. In some cases, existing policies were created before the EU AI Act became relevant. Now is the time to ensure that an organization’s AI practices and knowledge are up to date. This is also essential for meeting the AI Act’s requirement to ensure that employees possess sufficient AI literacy.
Why Is AI Policy Needed?
An AI policy is not just a formality — it is a practical tool that ensures responsible and safe use of AI. It also helps organizations comply with new regulations while creating the foundation for effective innovation.
Ensuring AI literacy: One key purpose of an AI policy is to support the level of AI literacy required by the AI Act. Since February 2025, every organization using AI has been expected to use best efforts to ensure that its employees understand the risks, opportunities, and potential harms associated with AI. A well-designed policy is a core part of this organizational and educational obligation. The European Commission has also hinted that, in cases of non-compliance, sanctions are more likely if an organization has neglected its AI literacy duties.
Encouraging effect: Clear rules encourage employees to use AI with confidence. When personnel know what is allowed and what is not, AI use shifts from cautious experimentation to structured development. A good policy provides a sense of security, empowering employees to explore new ways of improving their work without fear of breaching contractual or regulatory obligations. This means that the policy serves not only as a risk management tool but also as a driver of innovation.
Managing shadow IT: An AI policy helps identify and manage unregulated AI use and shadow IT. In many organizations, employees have independently introduced AI tools into their workflows. When such use goes unnoticed, its risks cannot be properly managed. A clear policy makes AI use visible and provides guidance on how to handle tools employees adopt on their own initiative. By contrast, an outright ban on AI tools rarely reduces risks – it may even increase them, since it prevents open guidance on safe and compliant practices.
Protecting trade secrets and personal data: One of the most critical functions of an AI policy is to set clear boundaries for handling confidential business information and personal data. If an employee puts customer data, internal plans, or personal information into an AI tool, such information may escape the organization’s control.The policy defines what information can be used, under what conditions, and in which environments. This protects both the company and its stakeholders.
Implementing the AI Act in practice: An AI policy helps translate regulatory requirements into concrete organizational practices. Particularly for high-risk use cases, the AI Act imposes obligations related to data management, record-keeping, monitoring, and oversight, for example. Knowing the rules is not enough; they must be integrated into daily processes and decision-making. An AI policy serves as a bridge between legal requirements and everyday operations.
Building trust with stakeholders: An AI policy also sends an important external message. When a company can demonstrate that it uses AI thoughtfully and responsibly, it builds trust with customers, partners, and regulators. That trust strengthens the company’s reputation and helps it stand out positively in the market. In this sense, the AI policy functions simultaneously as a risk management tool, a training resource, and a strategic statement of responsibility.
An Investment in a Sustainable Future
The use of AI brings new types of risks — but also immense opportunities. A clear AI policy helps turn AI into a genuine business strength, enabling innovation while ensuring that risks are properly managed.
Whether AI is already an integral part of daily operations or still in the pilot phase, now is the right time to make sure that your organization’s guidelines and training are up to date.
Katri Aarnio
Counsel
050 306 2031
If you’d like to receive our articles directly in your email, subscribe to the Folks newsletter here.