In this piece, small-business tech educator Tracy Sheen explains why every business needs an AI policy right now – yes, even yours!
By 2025, AI is expected to add $315 billion to the Australian economy. But if you’re running a small business without an AI policy, that boom could come with a bust.
If you’ve used Canva’s Magic Write, Xero’s auto-categorise, or Grammarly’s tone checker, you’ve already invited AI into the workplace. No sci-fi takeover, no robots in the storeroom – just clever algorithms baked into the tools you use every day. But while AI can be a productivity game-changer, using it without clear guardrails could land your business in hot water. And that’s why every Aussie small business needs an AI policy.
Not next year. Not when you “have time”. Now.
Think of an AI policy like the digital equivalent of locking up the shop at night. It’s not about red tape, it’s about protecting your business from avoidable mess.
Without a basic plan in place, small businesses risk:
- Accidentally breaching customer privacy laws
- Publishing inaccurate or misleading content
- Making decisions based on biased or incomplete AI outputs
The case for commonsense guardrails
Policies often get a bad rap in small business circles – seen as something for the big end of town. But this isn’t about adding paperwork. It’s about reducing risk and giving your team (and yourself) clarity. A basic AI policy should include:
- What tools your team are allowed to use
- When and how to fact-check AI outputs
- What types of content AI should never be used for (e.g. legal, financial or medical advice)
- Who is responsible for reviewing and approving AI-generated content
Imagine the following: A regional NSW tourism operator uses AI to write a blog post promoting local drives. The tool recommended a route via a road that had been closed for months. The post is published unchecked, leading to lost bookings and frustrated customers. A simple policy could’ve prompted a quick double-check and saved the PR headache.
Big business is already on it
Westpac, SEEK, and Woolworths are just a few of the major Aussie brands already training their teams and rolling out AI usage guidelines. Why? Because they know the risks of getting it wrong – and the competitive edge of getting it right. Global rules are also tightening. In 2025, the European Union began enforcing the AI Act, which bans high-risk AI applications and introduces strict transparency requirements. Aussie businesses exporting, partnering overseas, or simply wanting to stay ahead will need to be aware of these emerging global standards.
Writing a policy is easier than you think
The good news? You don’t need to be a tech whiz or have a compliance department. A one-page AI policy can be enough to guide your team and avoid most of the common pitfalls.
At a minimum, your policy should:
- List approved tools
- Set boundaries around what’s appropriate for AI use
- Outline a simple “review before publish” process
- Nominate someone as the go-to person for questions
This isn’t about fear – it’s about future proofing your business, and its reputation. For a great starting point, check the Australian Government’s AI Ethics Principles. You wouldn’t let a new staff member open or close your business without training. You wouldn’t let someone write a contract without a review. So why let AI make decisions, write your content, or interact with customers without a second look?
AI can be an incredible business ally. But like any powerful tool, it needs some commonsense rules around it. An AI policy helps you and your team stay productive, compliant, and in control – not playing catch-up when something goes wrong. It’s not about being techy. It’s about being smart.
