The Failure to Adopt Robust Company Policies is Bad Policy: The Critical Need for Internal Company Policies in a Data-Driven World

By: Alexander R. Migliorini, Esq. and Jeffrey W. Berkman, Esq., LL.M.

In today’s rapidly evolving business landscape, internal policies around generative AI, document retention, data privacy, confidentiality, and intellectual property are of paramount importance. However, business owners often overlook the need to implement or update internal company policies until serious, but generally avoidable, issues surface.

A well-drafted generative AI Policy clarifies how employees and contractors may utilize AI tools like ChatGPT or Gemini, mitigating the risk that proprietary information, client data, or trade secrets are forfeited to open-source models, while document retention policies support compliance with client contracts and legal requirements. Equally critical are robust confidentiality and data privacy policies, which protect both company and client information from unauthorized disclosure and ensure compliance with rapidly emerging data privacy laws. Finally, an IP/Invention Assignment Policy ensures that innovations developed by employees and contractors remain the property of the company.

By implementing and regularly updating these types of policies, companies not only ensure compliance with applicable laws and regulations, but can mitigate risks, build trust with clients and partners, and position themselves for long-term success.

Ask yourself: Do you have each of these guardrails in place? Have existing policies been updated to reflect the constantly changing compliance landscape? Are the policies internally consistent with each other and reflect the nature of your business, or are they a hodgepodge of conflicting provisions that expose the company to material risks? Without well-drafted policies reflecting your company’s business operations, your organization risks regulatory fines, breach of client contracts, loss of intellectual property and trade-secret protection, and reputational damage.

Speak with a Trusted Attorney

At Falcon Rappaport & Berkman, we partner with companies to ensure their internal policies reflect both current legal standards and their unique operational realities. Whether you're building from scratch or refining what you already have, well-drafted, up-to-date policies help shield your business from legal exposure, protect sensitive assets, and demonstrate a commitment to responsible governance.

If you are unsure whether your policies are comprehensive, current, or cohesive, now is the time to act. Don’t hesitate to contact us today to discuss a comprehensive review of your company’s document retention policy, AI policy, confidentiality terms, intellectual property protections, privacy practices, website terms of use, or any other internal guidelines. We are here to help you protect what you’ve built and set the stage for what’s next.