📘 Guide 🟡 Intermediate

AI Governance Framework Template

⏱️ 2-4 weeks to implement | Updated January 20, 2025

A customizable policy template for establishing clear, consistent AI usage guidelines across your organization. Covers data classification, approved tools, and governance procedures.

Strategy

What You'll Learn

  • Clear policy document for AI tool usage
  • Data classification framework
  • Approved tool list with security configurations
  • Governance committee structure
  • Incident reporting procedures

Prerequisites

  • Executive sponsorship for AI governance
  • IT/Security team involvement
  • Legal review capacity
  • List of AI tools currently in use (or being considered)

Overview

This governance framework template provides a comprehensive structure for establishing AI usage policies within your organization. It's designed to be customized to your specific context, industry requirements, and risk tolerance.

Why governance matters: As AI tools become embedded in daily work, organizations need clear guidelines that encourage innovation while ensuring responsible, secure, and ethical use. Without governance, you risk data exposure, inconsistent practices, and regulatory issues.

Who Should Use This Template

This framework is designed for:

  • IT and Security Leaders establishing AI tool policies
  • Legal and Compliance Teams ensuring regulatory alignment
  • Executive Sponsors overseeing AI adoption initiatives
  • HR Leaders implementing training and enforcement

What's Included in the Template

1. Purpose and Scope

Clear statements defining why the policy exists and who it applies to. Covers employees, contractors, consultants, and any individuals accessing organization systems.

2. General Use Principles

  • Context Management: Balancing quality AI outputs with data protection
  • Human-in-the-Loop: Ensuring AI complements rather than replaces human judgment
  • User Responsibility: Establishing accountability for AI-generated outputs

3. Approved Tools Section

A templated structure for documenting:

  • Approved AI tools with license types
  • Data protection features of each tool
  • Prohibition of consumer-grade alternatives

4. Critical Do's and Don'ts

Non-negotiable rules including:

Always:

  • Review data sensitivity before use
  • Anonymize data when required
  • Practice data minimization
  • Document usage for audit purposes
  • Verify outputs for accuracy

Never:

  • Enter payment card data
  • Enter government IDs (SSNs, etc.)
  • Enter privileged legal information
  • Enter credentials or API keys

5. Data Classification Matrix

A four-tier framework for classifying data:

ClassificationDefinitionExamplesPermitted Tools
PublicApproved for public disclosureMarketing materials, published researchAll approved tools
InternalLimited harm if disclosedMeeting agendas, training materialsAll approved tools
ConfidentialSignificant harm if disclosedCustomer PII, strategic plansRestricted tools + anonymization
RestrictedSevere harm; regulatory riskPayment data, legal privileged infoNONE without formal review

6. New Tool Request Process

Workflow for evaluating and approving new AI tools:

  1. Submission via IT Service Desk
  2. Security review (SOC2, data retention)
  3. Governance Committee approval
  4. Configuration (SSO, data isolation)

7. Governance Committee Structure

Template for establishing oversight:

  • Committee composition recommendations
  • Meeting cadence (quarterly during pilot, bi-annual at scale)
  • Decision-making authority

8. Incident Reporting

Procedures for handling policy violations:

  1. Report to security contact
  2. Contain the exposure
  3. Investigate the scope
  4. Notify stakeholders if breach confirmed

9. Enforcement and Review

  • Compliance requirements
  • Disciplinary action framework
  • Policy review cadence

How to Customize This Template

The template uses placeholder variables (marked with double curly braces) that you'll replace with your organization's specific information:

  1. Organization name and branding
  2. Approved tool list with your specific licenses
  3. Industry-specific data types (e.g., PHI for healthcare, PCI for financial)
  4. Committee members and contact information
  5. Review timelines aligned with your governance calendar

Implementation Timeline

Week 1-2: Assessment

  • Audit current AI tool usage (anonymous survey recommended)
  • Identify stakeholders for Governance Committee
  • Review industry-specific compliance requirements

Week 3-4: Customization

  • Complete template with organization specifics
  • Legal review of policy language
  • Security review of tool configurations

Week 5-6: Approval and Communication

  • Executive sign-off
  • All-hands communication
  • Training session scheduling

Week 7+: Rollout

  • Policy effective date
  • Begin monitoring and enforcement
  • Schedule first quarterly review

Common Customization Questions

Q: How do we handle existing tools that aren't on the approved list?
A: Establish a grace period (typically 30-60 days) for teams to migrate to approved tools. Document any exceptions and require formal risk acceptance.

Q: What if we use multiple AI platforms?
A: The template supports multiple tools. Specify which data classifications each tool is approved for in Section 7.

Q: How strict should enforcement be initially?
A: We recommend a "coaching first" approach during the first 90 days, with escalating consequences after the initial rollout period.

Get Help

Need assistance customizing this framework for your organization? Schedule a consultation with our team.

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