10 Best Practices for Gen AI Governance in Small to Mid-Size Businesses

ChatGPT, Copilot, Gemini are being woven into everything we do on the internet. These Generative AI (Gen AI) tools present opportunities for small to mid-size businesses (SMBs). However, the lack of extensive resources often seen in larger enterprises requires SMBs to implement tailored governance/implementation practices. This article outlines ten effective best practices that can aid SMBs in governing/implementing Gen AI responsibly and effectively.

1. Define lightweight oversight group with clear roles

• This can be just the owner and potentially one other person

• Create a one-page Gen AI scope statement and accountable roles (product owner, security lead, legal/HR advisor, representative user).

• Also document a short “Gen AI scope and responsibilities” policy in the operations

2. Publish a clear HR policy on acceptable use

• Document a SOP with approval checklist when implementing Gen AI.

• Creating a policy for the use of Gen AI is essential. This document should outline acceptable use cases, limitations, and the overall objectives of using AI in your organization. It should be easily accessible and integrated into your HR handbook to ensure all employees are aware of their responsibilities and the ethical implications of AI deployment.

3. Deploy a Risk Assessment Framework

• Keep this simple. This is a structured risk assessment framework for evaluating AI systems before implementing. What are the risks? Bias? Data privacy?

4. Implement Data Management Best Practices

• Most companies have a customer phone, address, email. This constitutes Personally Identifiable Information (PII). This information should be protected with established protocols in storage and sharing to ensure compliance with laws such as GLBA and CCPA amongst others.

5. Keep an inventory of tools and vendors

• What to do: Maintain a simple centralized spreadsheet listing tools, model providers, purpose, data flows, and contract/vendor risk notes.

• What to document: Tool-inventory SOP and quarterly review cadence.

6. Set baseline security and access controls

• What to do: Limit tool access by role, use single sign-on where available, and prevent broad API keys stored in shared places.

• What to document: Access-control policy describing who can request and grant access, and how keys are stored.

• First step: Remove any shared credentials and require per-user authentication for GenAI tools.

7.Train employees with short, practical sessions

• This fosters a culture of ethical AI

8.Run lightweight audits and continuous improvement

• Review the HR policy yearly

• Review with spot-checks AI outputs and tool inventory

9.Update Policies and Practices yearly

• AI is evolving rapidly

10. Monitor and evaluate AI outcomes

• Always have a human in the loop

• Track AI effectiveness via reporting identifying any unintended consequences

Conclusion

Implementing Gen AI can significantly enhance your operational effectiveness while mitigating risks.

If you need help with any of these all want to implement the Sonareon SMB AI Framework, contact us at 248-602-2682

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