Why Your AI Policy Isn’t Working—and How to Fix It

August 17, 2025

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Earl

why your ai policy isn't working -- a brown paper book

Most companies now have an AI policy. It lives in a shared drive, gets mentioned during onboarding, and might even be presented at an all-hands.

But here’s the uncomfortable truth:

If your AI policy isn’t influencing behavior, it’s not protecting your company.

Employees are still pasting sensitive data into chatbots. Managers are green-lighting unsanctioned tools. And no one’s reading the 14-page PDF written in legalese.

The problem isn’t the policy.
It’s how we expect it to work.


The Disconnect Between Policy and Practice

AI tools don’t live in HR portals or compliance wikis—they live in the browser.

Employees use ChatGPT while drafting emails, Claude to summarize meeting notes, Bard to brainstorm ideas. These aren’t isolated events—they’re micro-decisions happening dozens of times a day.

A recent Infosys report highlights that 95% of executives using AI have encountered at least one mishap—yet only 2% of organizations meet responsible AI deployment standards. And despite 75% of organizations reporting they have AI usage policies, fewer than 60% have dedicated governance roles or incident-response playbooks in place, according to an article by the CIO magazine. This is evidence suggesting that policy alone doesn’t translate into readiness.

If your AI policy doesn’t show up at the moment those decisions are made, it’s already a step behind.


Common Reasons AI Policies Fail

AI tools evolve weekly. A policy written six months ago might already be obsolete. Thus, it’s fairly easy to imagine why AI policies can fail:

1. They’re too abstract

Vague phrases like “Use AI responsibly” or “Don’t upload sensitive data” leave too much room for interpretation.

2. They’re written like legal disclaimers

Employees need working definitions, real examples, and clear boundaries—not legal boilerplate.

3. They live in the wrong place

Most policies are hosted in policy portals, PDF files, or compliance decks—places people visit once, then forget.

4. They’re static in a dynamic world

From our end, we’ve encountered stories like how in a financial services firm, HR banned ChatGPT for any company data—but teams continued using personal accounts and VPNs, leading to unseen shadow risk. And at a university, a syllabus stated “no AI allowed”—but students still used it; the policy lacked context on what counted as “AI work,” so enforcement became impossible.


What Effective AI Governance Looks Like

1.Visible

Policies need to appear in the flow of work—especially when users interact with AI tools.

2. Contextual

Not all AI use is risky. Guidance should change based on role, task, tool, and data sensitivity.

3. Actionable

If an employee is about to paste customer data into a chatbot, a generic “don’t do that” won’t help. What will?
A prompt that says:

“Looks like this may contain sensitive data. Here’s our approved workflow for handling it.”

4. Evolving

Feedback loops matter. Monitor usage patterns and update policies based on real-world behavior.

Suppose you’d want to read more on articles that will take your AI policymaking to the next level, these articles are some of our best picks:

  1. Reuters has a lightweight, agile approach for keeping policies adaptive and context aware: 5Ws Framework
  2. Schiff et. al. (2020) posted a conceptual guide for closing the gap between high-level aspirations and what’s happening on the ground

How Tripwire Helps Bridge the Gap

Tripwire embeds policy where it’s needed most: in the browser, at the point of AI interaction.

It detects risky prompts, sensitive uploads, and unsanctioned tools—and nudges users with clear, non-intrusive guidance.
Not to punish, but to coach.

Tripwire turns policy from a static document into a living layer of support.


An AI policy isn’t just something you publish.
It’s something your team has to live with—and live by.

If yours isn’t making that leap from intention to action, it’s time to fix it.

  • Learn more about our solution through the post: Introducing Tripwire
  • Apply for early access and get our exclusive whitepaper
  • Or just follow along as we explore how to make AI use at work safer, smarter, and more human

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