AI Security Policy: How Small Businesses Can Use AI Safely
Artificial intelligence is changing how small businesses work. But without a clear AI security policy, these tools can put your sensitive data at risk.
That’s because unmonitored AI use can lead to data exposure, compliance complications, and inaccurate AI-generated outputs. But that’s what an AI security policy is for: creating an enforceable framework that protects your business and helps you respond to AI-related risk.
Today, we’re continuing Cybersecurity Awareness Month by looking at why an AI security policy matters, what it should include, and how an MSP can help your business adopt AI safely.
Key Takeaways: AI Security Policy Essentials
- Find Shadow AI: Identify the AI tools your employees are using so you can uncover hidden risks and bring unapproved tools under control.
- Protect Sensitive Data: Set clear rules for what information employees can share with AI tools and which tools are approved for business use.
- Enforce Access Controls: Use safeguards like multi-factor authentication and restricted data permissions to limit access to sensitive information.
- Prepare for AI-Related Incidents: Establish clear procedures for reporting and responding to accidental data exposure, unauthorized AI use, and other security risks.
- Don’t Rely on Policies Alone: Combine employee training and human oversight with technical security controls to help ensure your AI policy is followed.
AI Security Risks for Small Businesses
AI tools are extremely useful, but using them without any sort of AI security policy can lead to:
Data Exposure: AI tools handle data differently. Depending on the service, account type, settings, and terms, a tool may store the information entered or use it to improve its model. Before your team starts using an AI tool, they need to understand how it handles data. In general, they should avoid entering sensitive information into unapproved tools.
Incorrect AI-Generated Output: AI is a prediction engine, not a fact-checker. It can confidently invent legal citations, technical specifications, or facts that don’t exist. Without a verification process, your business could make costly decisions or share misleading information with customers.
Ownership & Copyright Concerns: Under U.S. copyright law, purely AI-generated content isn’t eligible for copyright protection. If your team relies heavily on AI to produce marketing material, creating clear guidelines on how that content should be used is critical.
Regulatory Blind Spots: Depending on the information your business handles, using AI without the appropriate safeguards can lead to additional compliance risks.
The Shadow AI Problem
Over 50% of employees across industries admit to using AI tools without telling their employers. With a statistic like that, there’s a good chance you have undocumented AI use in your own business.
Without any way to identify and document AI tools, your business won’t know which tools employees are using or whether they’re following security best practices. Even if you have an AI-usage policy that dictates how your employees should use AI, there’s no guarantee they’ll actually follow it.
That’s what an AI security policy is for.
What Is an AI Security Policy?
An AI security policy turns broad security goals into concrete rules for using AI safely. It defines which AI tools employees can use, how these tools should be protected, and how leadership can approve and monitor their use.
While an AI usage policy acts as an employee-facing rulebook that focuses on how employees use AI – including which tools they can use and what information they can enter – an AI security policy is a technical framework that governs how your business protects against AI-related risk and responds to incidents.
The 5 Pillars of a Strong AI Security Policy
- Dedicated Security Oversight: Assign a team to evaluate AI tools and approve them before they’re deployed. Include IT, security, and any other AI experts.
- Regular AI Audits: Interview your team and document what tools your team is actually using. Make sure you review existing software use as well, as many applications have AI functionality built directly into them.
- Strict Access Controls: Enable features like multi-factor authentication and limit access to approved tools based on employee roles. You should also configure permissions for AI tools so they can only access the data and systems they are meant to.
- AI Incident Response: Update your existing incident response plan to cover AI-related security incidents. For example, if an employee pastes a client phone number into an unapproved AI tool, they should immediately report it to your IT lead or security contact. Your team can then assess what was shared, contain the exposure, and contact the AI vendor.
- Continuous Monitoring: Monitor device, application, and network activity for signs of unauthorized AI use or suspicious behavior. Have your oversight team regularly review these findings to spot potential issues and to make sure your employees are following your AI security policy.
A Policy Alone Isn’t Enough
Unlike an acceptable use policy, an AI security policy relies heavily on technical safeguards like access controls and restrictions. These security measures can simply be out of reach for many small businesses, especially those without an internal IT department.
That’s where a managed service provider (MSP) comes in.
When your business partners with an MSP, you gain access to a wealth of IT resources and expertise. An MSP can help you implement access controls and zero-trust security measures, as well as identify undocumented AI use by auditing devices, apps, and network activity.
Having an MSP in your corner means having the expertise to actually enforce your security policy, not just have it in writing.
Secure Your AI Use With The 20 MSP
At The 20 MSP, we specialize in helping businesses integrate new technology without sacrificing security. From implementing AI tools to designing clear AI policies, we provide the white-glove support your business needs to grow safely.
Ready to use AI the right way? Let’s chat.
About The 20 MSP
As a leading provider of managed IT services, The 20 MSP serves thousands of businesses nationwide, providing each one with white-glove service, secure and streamlined IT infrastructure, and 24/7/365 support. We believe in building lasting relationships with clients founded on trust, communication, and the delivery of high-value services for a fair and predictable price. Our clients’ success is our success, and we are committed to helping each and every organization we serve leverage technology to secure a competitive advantage and achieve new growth.

