AI is no longer a futuristic concept it’s here, embedded in how we write, analyse, communicate, and make decisions. Used well, AI can be an incredible opportunity for every organisation. When we allow it to assist us and put the right controls in place, it can transform how we work, innovate, and compete.

But be careful: many companies jump into AI adoption without a clear framework in place to help guide this opportunity and transition. That creates risk, not just in terms of compliance and security, but also in fairness, ethics, and brand reputation.

So, what does a good AI framework look like? And how can a smart, well-designed AI policy support safe, responsible, and value-driven AI adoption?

Let’s dive in.

The Three Core Levels of a Strong AI Framework

A good AI framework should consist of at least three foundational levels, each serving a distinct purpose in ensuring AI is used safely, effectively, and strategically across the organisation:

Let’s do a deep dive on the middle, the AI policy.

AI Policies for Different Levels of Organisational Maturity

AI adoption isn't a one-size-fits-all, and neither are AI policies. As organisations mature in their use of AI, their governance needs evolve. A well-designed AI policy should reflect the organisation’s current capabilities, risks, and ambitions.

Below is a breakdown of how AI policies should function at three key stages of maturity:

1. Entry-Level: Early Adoption

 What’s Happening:

• Teams are experimenting with tools like ChatGPT, GitHub Copilot, or AI-powered analytics.
• There's growing interest, but little formal oversight or standardisation.
• Risks are largely unintentional, such as sharing sensitive data or assuming AI outputs are accurate.

Policy Focus:

• Acts as a risk management and awareness tool.
• Sets basic guardrails for AI use across teams.
• Helps the organisation avoid legal, reputational, and data security pitfalls during initial experimentation.
• Introduces acceptable use, data privacy, and ethical considerations in simple, actionable terms.

 Key Goals:

• Prevent accidental misuse of AI tools.
• Raise awareness of AI’s risks and limitations.
• Create a consistent baseline for AI use across the organisation.
• Lay the foundation for scaling AI use safely in the future.

2. Mid-Level: Scaling & Operational Integration

What’s Happening:

• AI is integrated into multiple business processes and tools.
• Some teams build or deploy their own models.
• AI begins to impact external services, customer experience, and strategic decisions.

 Policy Focus:

• Moves from awareness to structured governance.
• Expands to cover third-party vendors, model accountability, fairness, and compliance.
• Clarifies roles: Who owns AI decisions? Who monitors them? How are risks escalated?

Key Goals:

• Ensure consistent, compliant use of AI across departments.
• Minimise shadow AI and tool sprawl.
• Define processes for model review, risk assessments, and incident reporting.
• Align AI use with organisational values and regulatory requirements.

3. Advanced: AI-Driven or AI-First Organisation

 What’s Happening:

• AI is core to business strategy, product design, or competitive differentiation.
• The organisation may build proprietary models or AI platforms.
• Stakeholders (customers, regulators, investors) demand transparency and accountability.

 Policy Focus:

• Becomes part of a broader AI governance framework, aligned with AI ethics, compliance (e.g. EU AI Act), and sustainability goals.
• Covers bias mitigation, transparency, human oversight, and model explainability.
• Supports external auditing, impact assessments, and AI lifecycle management.

 Key Goals:

• Demonstrate responsible, ethical, and trustworthy AI leadership.
• Ensure ongoing alignment with evolving legal and societal expectations.
• Maintain a competitive edge through controlled innovation.
• Foster a mature, risk-aware, and high-performance AI culture.

Up next: AI strategy and AI Best Practice, stay tuned!

Want Help Drafting Your AI Framework?

Whether you're just starting your AI journey or looking to strengthen your existing governance, we're here to support you. From strategy and policy development to best practice guidance, we can help you build a framework that’s fit for purpose, and fit for the future.