Generative AI is already reshaping how organisations work. Tools like ChatGPT and image generators can speed up routine tasks, support decision-making, and open the door to new ways of working. Yet without clear guidance, these same tools can introduce risk, confusion, and unnecessary pressure on teams.

Many organisations recognise the need for responsible AI but haven’t yet put the right guardrails in place. It’s understandable. AI has arrived quickly, and many teams are experimenting without a clear framework. That’s where a practical governance approach makes all the difference. When the boundaries are clear, AI becomes a reliable asset instead of a potential headache.

Below, we explore five rules that help organisations use generative AI with confidence and reduce the risk of accidental misuse.

The value of generative AI

AI has become an everyday tool because it helps people move faster and focus on higher-value work. It can summarise lengthy documents, pull out insights, generate content drafts, and even support frontline teams by triaging incoming queries. When used well, it improves productivity, accuracy, and collaboration.

Research bodies such as the National Institute of Standards and Technology have highlighted how generative AI supports better decisions and more efficient workflows across a wide range of industries. In practice, this means teams get more time back, processes become smoother, and organisations can respond more effectively to change.

Five rules for governing ChatGPT and other AI tools

Using AI responsibly isn’t just about compliance. It protects the people and information you rely on every day. These rules offer a practical foundation for organisations building or refining their AI policies.

1. Set clear boundaries from the start

Every effective AI policy starts with clarity. Teams need to know where AI is appropriate, where it should never be used, and who is responsible for monitoring usage. Without this, it’s easy for someone to unintentionally share sensitive information or rely too heavily on automated output.

Boundaries should be reviewed regularly so they evolve alongside your organisation’s needs and the wider regulatory landscape. When people understand what is allowed, AI becomes a far safer and more useful addition to their workflow.

2. Keep humans firmly in the loop

AI can produce content that reads convincingly yet contains errors or assumptions. That’s why human oversight is essential.

AI should support people rather than replace their judgment. It can draft, summarise, and speed up manual work, but only humans can validate accuracy, refine tone, and apply context. No AI-generated content should be shared publicly or used to inform major decisions without a human review.

3. Prioritise transparency and keep detailed logs

You can only manage what you can see. Transparency enables teams to monitor how AI is being used and quickly spot problems before they escalate.

That includes keeping logs of prompts, versions, timestamps, and the people involved. These audit trails support compliance, strengthen accountability, and provide insight into how AI is performing across the organisation. Over time, this helps you understand where AI adds value and where it may need tighter controls.

4. Protect intellectual property and sensitive data

One of the biggest risks with generative AI comes from the information people feed into it. Any prompt that includes client details, confidential data, or information covered by nondisclosure agreements poses a risk.

Your AI policy should clearly define what information can be used and what must stay firmly offline. For public AI tools, the rule is simple. If the data is sensitive, don’t put it in. Training staff to recognise what counts as sensitive information is just as important as having the policy itself.

A note on UK copyright law and AI-generated content

Copyright and AI is a developing area of UK law, and the guidance continues to shift as the technology matures. Under current legislation, only humans can hold copyright. AI systems are not considered authors, and there is still uncertainty around how the law treats content created with limited human input. The UK Government has acknowledged these gaps and is reviewing the topic as part of its ongoing work on copyright and artificial intelligence.

Because this landscape is changing, organisations should avoid assuming they automatically own material created entirely by AI. Human oversight and meaningful human contribution remain important for clarity and for maintaining stronger ownership over the work produced. It’s also worth remembering that these considerations apply specifically to the UK. Other countries may take different approaches, and international copyright rules are far from consistent.

For the most up-to-date position, readers can refer to the UK Government’s current guidance and consultations on copyright and AI on gov.uk.

5. Review, refine, and educate continuously

AI will keep evolving, and your policy should evolve with it. Regular reviews allow you to tighten controls, adjust boundaries, and respond to emerging risks. Just as importantly, your teams need ongoing guidance. Training builds confidence and helps people get the best from AI without compromising security or compliance.

An AI policy isn’t a one-off document. It’s a living framework that grows as your organisation becomes more experienced and the technology matures.