AI Governance and Acceptable Use Policies

Responsible AI implementation in people practice requires more than selecting the right software — it demands structured governance before a single tool goes live. This video addresses AC 3.3 of FREE08, focusing on how organisations can implement AI in a responsible and controlled way. It covers AI governance frameworks as the overarching mechanism through which organisations assign accountability, establish consistency across departments, and set boundaries on how AI systems are selected, deployed, and managed within HR and people functions.

A central focus of the video is the acceptable use policy for AI, examined as a formal governance instrument rather than a general technology policy. The video looks at what such a policy needs to contain — including approved tools and platforms, permitted purposes, prohibited activities, and the process for requesting new applications — alongside the importance of accessible, plain-language drafting. Alongside formal policy, the video addresses the role of practical day-to-day guidelines, escalation procedures for uncertain situations, and the documentation of AI-assisted decisions as part of broader accountability structures.

The video also draws on a concrete recruitment scenario to illustrate what responsible governance looks like in practice when a staff member encounters an unapproved AI tool for CV screening. Risk differentiation — distinguishing high-risk from low-risk use cases — runs through the discussion, as does the principle of human oversight in reviewing AI-supported decisions. Data protection considerations, including the handling of confidential employee and candidate information, training and capability building for HR teams, and the need for regular review and auditing of AI outputs, are all treated as components of a coherent governance approach rather than standalone concerns.