AI can produce polished nonsense or powerful support. For small business owners, the difference lies in your leadership and AI Policy that guides it. In business, that nonsense can cost you your reputation, your money, and your people.
So when the headlines continue to push the narrative that AI can do all things or is here to take over the world, pause, reflect and join me as we look closer because this is where leadership begins.
What's Beneath the Dazzle of AI?
Let’s start with policies and procedures as the first example. A simple prompt can have AI return an in-depth policy, followed by an offer to produce accompanying procedures. There’s no threat here for me. I’ve guided many founders through this fog. I’ve worked with enough clients who’ve brought me these AI-generated policies for review.
Business owners are impressed by what simple prompts can produce and start the session confident that they’ve created a masterpiece. Yet as we zoom in on the sections, they begin to see just how many assumptions have crept in. That impressive policy is only surface-level. As we break it down, highlighting the practicalities. That’s when the real work begins, turning that low-value draft into a rulebook worthy of your business.
Assumption-Based Policies
Without the right guidance, AI won’t prompt the user about the particulars of the business: the mission, the values, the intention of building a particular culture to attract like-minded individuals to achieve the common goal. AI will follow the directions given and fill in the blanks based on what it already knows, from others. From your location to your industry and intent, AI will serve up a dazzling collection of words that sound professional but are the same tired boilerplates offering no meaningful risk management for SMEs.
The most harmful assumption is that your business is striving to be like everyone else who has fed data into the tool. These layers of assumption can lead to complete misalignment; not only with your company’s values and purpose but also within the legal ecosystem in which your business operates. However, when business owners lead with clarity, AI becomes what it should be: an assistant, not an architect.
Most business founders know this. Still, in a moment of awe at the instant response, they get distracted and start calculating how much Money, Energy, and Time (MET) they’ve saved, putting themselves at risk of paying far more in the long run, financially and ethically.
Recognising the Value
Without proper consideration and understanding of that policy, a business could face fines, legal trouble, and reputational damage. It’s neither productive nor efficient to have rules for the sake of it. At CAS Ltd, the value starts with the conversation. What makes your business different, and what structure is needed to encourage and nurture that difference?
A Flutter can be the starting point, like a returning client who asked me to review a training policy. On paper, it was legally sound but in practice, it was harsh and completely misaligned with the ethos of the business. Until we walked through it together, analysing what each clause meant in practice and the possible ripple effects, the founder hadn’t seen the risks. What the business founder thought would be a ten-minute review turned into a one-hour Flutter strategy session with a list of points to consider.
That first impression policy wasn’t ready for implementation. It wasn’t rooted in the reality of their business. Stronger leaders make space for guidance and sounding boards because rushed decisions rarely build lasting businesses. As business owners, we have to see beyond the immediate and consider the effects in the not-too-distant future. The right policy is like the soothing breeze through the leaves, as assumptions are turned into alignment. This is how working with The Ethical Strategist gets your business humming.
Why HouseRules Matter in the Age of AI
AI, policy, and ethics are a combination I’ve been speaking about on LinkedIn. Feel free to connect and get involved in the conversation. In the meantime, pause and reflect on how AI is currently used in your business. Is there a clear policy guiding its ethical use, or is the risk unmanaged?
Are you nurturing seeds that will strengthen your internal ecosystem, or letting weeds take root? If you need guidance, you know where to find me.
Every AI-generated report, email, or proposal without clear policies and procedures for AI is a liability masquerading as efficiency. What’s missing is a process of accountability.
If you wouldn’t allow the new apprentice hire to speak to your clients without training, why are you letting an unchecked bot take the lead in your business with no parameters?
What Part of Your Structure Needs Repositioning?
As the founder or leader, you have to make time for the important matters that will have a significant impact on your business. Remember, AI is an assistive tool, but the best assistance comes when the foundations are communicated. Smaller business owners must recognise that AI doesn’t replace thinking. It demands better thinking.
AI doesn’t replace thinking. It demands better thinking.
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