The email arrived late in the day. The GC opened it to find that the marketing team had already launched a customer-facing campaign written entirely by a generative AI tool. The team was enthusiastic. The copy had gone out quickly, scaled beautifully, and matched their creative vision. Yet legal had not reviewed it, highlighting the urgent need for a comprehensive AI governance policy. No one had flagged the campaign for approval. Soon after, a long-standing client raised concerns about misleading claims buried in the AI-generated language.
There was no intent to deceive and no malice. The problem was not the technology itself. Instead, the failure came from the absence of policy. Innovation had moved faster than governance.
For that general counsel, the lesson was sharp and immediate. Reacting was not enough. It was time to architect an AI governance policy—not to slow the business down, but to ensure it advanced with clarity, transparency, and accountability.
The GC’s New Role in Shaping the AI Governance Policy
Legal teams have long operated in a reactive mode, stepping in only after a contract is drafted or a regulatory red flag is raised. That model no longer works for generative AI. These tools are already embedded in daily workflows. They draft, summarize, structure, and even recommend language in areas that directly touch legal, compliance, and ethics.
General counsel must now design the rules of engagement. This isn’t about blocking innovation—it’s about making innovation safe to scale. Legal needs to define what is permitted, what is prohibited, and what requires human review. That clarity transforms legal from a checkpoint into a strategic enabler.
GCs are uniquely positioned for this role. They see across departments, understand the regulatory landscape, manage reputational risk, and know how to balance law, ethics, and business strategy.
Building a Living AI Governance Policy
A generative AI policy does not need to be exhaustive on day one. What matters most is that it exists, that it is actionable, and that it evolves. It must be a living document, regularly updated to reflect new use cases, legal developments, and business priorities.
The strongest policies begin with clear values. Transparency, accuracy, accountability, and human oversight should form the foundation. From there, operational guidance must be added: which tools are approved, what tasks they can be used for, and where escalation is required. The policy should be understandable to non-lawyers, and employees should always know where to go with questions or concerns.
Training and awareness are not afterthoughts. They are essential to adoption. Without shared understanding, even the most carefully written AI governance policy will fall short.
AI Governance Policy Requires Cross-Functional Collaboration
AI does not belong to any single department. Its impact spans marketing, HR, IT, procurement, and product development, which makes cross-functional alignment essential. Legal cannot create a meaningful AI governance policy in isolation.
Collaboration with IT ensures that system integrations, data flows, and third-party platforms are accounted for. Alignment with compliance helps match AI use with regulatory requirements. Procurement can negotiate contracts that include the right safeguards. HR plays a role in guiding responsible AI use in hiring, performance reviews, and internal communications. Marketing must set boundaries around tone and brand safety, while privacy experts ensure that sensitive information is handled correctly.
When every function has a voice, adoption improves. People are more likely to respect and follow a policy they helped create.
From Assessment to First Draft: Asking the Right Questions
Before drafting begins, organizations should take a baseline inventory. Where is generative AI already being used, officially or informally? What kinds of data are involved? Which use cases carry higher risk? And where does human oversight exist, and where is it missing?
Key questions guide this process. Who reviews AI-generated outputs? What safeguards prevent errors? How does the organization respond when AI makes a mistake? The answers shape both the policy language and the operational processes that support it.
Starting small is often better. Focusing on known use cases provides a stronger foundation than rushing into a broad but unenforced framework. A thoughtful first version can then expand as experience grows.
Policy as Blueprint: Structuring What Matters
A strong AI governance policy always includes a clear purpose and scope, precise definitions, approved and prohibited use cases, and escalation protocols for higher-risk scenarios. It should also address training requirements, outline audit procedures, and establish a cadence for updates and reviews.
Ownership is crucial. Assigning responsibility for policy maintenance, designating contacts for employee questions, and creating transparent version control all ensure the framework remains practical. Enforcement must be consistent and fair, otherwise credibility is lost.
The goal is not perfection but clarity. A good policy acts like a roadmap, not a wall. It guides judgment, supports compliance, and reinforces trust.
Governance as a Strategic Asset
In a business environment shaped by speed and complexity, policy can feel like friction. Yet the right governance model works more like a seatbelt than a brake. It allows the business to move quickly while protecting what matters most.
A well-structured AI governance policy signals preparedness to the board, confidence to the C-suite, and clarity to frontline employees. It helps legal surface ethical risks before they become headlines, and it builds credibility with regulators, clients, and partners. Most importantly, it positions legal not as the “department of no,” but as a strategic advisor who helps the business scale responsibly.
Final Reflection: Policy Is Leadership
Generative AI is not a passing trend. It is reshaping how work gets done across industries and disciplines. For general counsel, this moment is not just about compliance—it is about leadership.
The companies that succeed will not be the ones with the longest policies. They will be the ones whose legal teams asked the right questions early, involved the right people, and built the guardrails that let innovation move forward with confidence.
The next time a business leader proposes using AI to accelerate a process or draft a communication, the most powerful answer legal can give is not yes or no. It is: let’s look at the policy together.
