By Eleanor Hecks, Editor-in-Chief of Designerly Magazine

Artificial intelligence (AI) is transforming how retailers operate, from customer-facing chatbots to internal processes like HR and IT. However, this technology has its drawbacks and limitations, making responsible and transparent AI use critical for maintaining trust and maximizing the benefits of these tools.

What Is an AI Use Policy?

AI use is a growing norm across multiple industries, including retail. While customers are growing more familiar with AI chatbots and other tools, their trust levels remain unchanged.

An AI use policy refers to guidelines outlining the extent to which a company will use AI in its operations. It could be internal, detailing acceptable usage of AI in company operations, or external, explaining a retailer’s AI use and features to customers and clients.

This document addresses several concerns surrounding AI. It reassures customers, employees and stakeholders that the company is taking this technology seriously, especially around data privacy, bias and ethical use.

With 91% of global executives scaling up their use of AI, this document is crucial to uphold responsible AI use and ensure corporate accountability toward its employees, customers and other stakeholders.

What to Include in Your Retail AI Use Policy

AI use policies can differ across companies, given differences in internal processes and methods of AI adoption. However, most will include the following sections. You can use this list as a guide and tweak your document based on your needs.

1. Purpose and Scope

Start by explaining why the policy exists and to whom it applies. In this section, you can define whether it covers only internal staff, third-party vendors, or customer-facing employees and systems. These clear boundaries ensure consistent compliance across the company.

2. Definitions

Define key terms like “artificial intelligence,” “machine learning,” “algorithms,” “chatbots” or “big data.” Clear definitions create a shared understanding that prevents misinterpretation when implementing AI tools.

3. Approved Tools and Use Cases

List which AI tools and platforms are approved for use, and how staff should utilize them. For example, you could use AI chatbots for customer service or analytics software for sales forecasting. Explain acceptable and prohibited uses to prevent unauthorized experimentation with unsecured or unreliable tools.

4. Data Privacy and Security

AI relies on data, and unsecured systems can leave you vulnerable to breaches and other cyberattacks. Specify how the organization collects, processes, stores, and uses customer or employee information. Include safeguards like anonymization and outline steps to ensure compliance with data privacy regulations and standards.

5. Intellectual Property and Ownership

AI-generated content can raise questions about ownership. Clarify who owns AI-generated assets, like images, marketing copy or code. This section clarifies your stance and prevents potential disputes.

6. Ethical Use and Bias Prevention

Bias in AI systems can lead to skewed results or unfair treatment. Your policy should show commitment to regular audits and testing for bias, especially in systems that affect hiring, promotions, pricing or customer segmentation.

7. Oversight and Accountability

Designate specific roles or committees responsible for monitoring AI use and compliance. A clear monitoring and reporting system ensures that your organization doesn’t overlook anything and maintains strict compliance with acceptable AI use cases.

8. Training and Awareness

Policies are most effective with proper education. Mention ongoing training programs to ensure employees understand the policy and know how to use AI tools responsibly. Regular workshops and refreshers build confidence, prevent misuse and maintain compliance when tech evolves.

9. Legal Compliance

This section outlines how your policy and practices align with applicable laws and industry standards, including data privacy, consumer protection, intellectual property and employment laws. It demonstrates your company’s commitment to ethical and responsible use.

Considerations and Best Practices for Crafting an AI Use Policy

Aside from knowing what to include, how you develop your policy also matters. Here are some best practices to guide your drafting process.

Involve Relevant Stakeholders

Bring together leaders from IT, HR, legal, risk management, business operations and compliance when drafting the policy document. Each department offers unique insights into where and how the company uses AI, as well as its potential risks.

Assess Your Current Policies

Review your existing data security, privacy and technology policies. You may already have frameworks that you can expand to cover AI-specific issues. Integrating AI guidelines into current systems also improves alignment and cohesion.

Updating these documents is crucial, as AI can come with unique threats. Research shows that 97% of organizations reported experiencing AI-related security incidents and lacked proper AI access controls.

Consult Legal Counsel

AI and the laws governing it are still evolving. Legal experts can help ensure your policy complies with current regulations while anticipating upcoming requirements. They can be especially helpful for retailers operating in multiple states or countries, where technology or AI regulations may differ.

Leading With Responsible AI Use

AI can bring new opportunities for retailers, but this innovation must come with responsibility. A clear and comprehensive AI use policy protects your business from risk while building trust with customers, employees and business partners.

About author

Eleanor Hecks is a SMB writer and researcher with a particular focus on helping e-commerce businesses thrive. She works as Editor-in-Chief of Designerly Magazine, and her work is featured on a range of e-commerce publications such as ShoppingFeed.