AI Use Policies Key To Leveraging Its Potential
Welcome to CFC’s 2026 Trends Report. I’m Brian Sloboda, CFC’s Director of Utility Research & Policy.
As we think about what’s in store for electric cooperatives in 2026, one thing is certain: artificial intelligence (AI) will be playing a pivotal role. In fact, it already is. AI tools are increasingly present in the workplace. They can help draft documents, summarize lengthy reports, analyze data, support member communications and even help us brainstorm new programs and services. When used wisely, AI can save us time, improve member service and free staff to focus on higher-value work that truly requires human judgment.
However, AI is not a magic solution, nor is it a replacement for people. It can be incorrect, biased or incomplete. AI does not understand the cooperative principles, your members or your local community the way your staff does. That’s why co-ops are adopting AI use policies. Not every AI use policy is the same, but the most effective ones start with a clear principle: AI can assist, but human staff must always be in charge.
So, what does an effective AI policy for a cooperative typically include?
First, it defines acceptable uses. For example, using AI to draft an initial version of a newsletter article is fine, but an employee must review, edit and approve it. AI should not provide legal, financial, engineering or safety advice directly to members or staff without expert review.
Second, it requires human oversight. No AI generated content should go out to members, regulators or the public without a human employee checking it for accuracy, tone and alignment with your cooperative values. If AI helps with internal reports or analysis, employees must validate the numbers and the conclusions.
Third, it addresses privacy and data security. Employees need clear guidance on what information can be shared with AI tools and what must remain confidential, especially member data, financial details or critical infrastructure information. Protecting members and systems is non-negotiable.
It is also important to recognize that AI is not limited to standalone tools. Many software products you already use may have AI features built into them—whether in outage management systems, billing platforms, HR software or email and office tools. We can no longer assume that “regular” software is separate from AI.
This is where contracts become essential. Vendor agreements must clearly define how co-op data is used, who owns it and how it is protected. The cooperative should always retain ownership of its data. Vendors should never be allowed to train their models on co-op member information or sensitive operational data unless the co-op has explicitly agreed to do that, with strong safeguards in place.
Contracts should also address security standards, incident response protocols and procedures in case of a breach. They must specify responsibilities and liability if an AI feature generates incorrect or harmful output. Finally, contracts should require vendors to notify the cooperative when they add or change AI capabilities so the co-op can review these changes against its policy.
In short, AI can be a helpful assistant, but it should never be in charge. With thoughtful policies, strong contracts and human employees firmly in control, we can harness the benefits of AI while protecting members, systems and data.
That’s all for today. As always, thank you for watching. Be on the lookout for more industry and technology Trends Report content. We’ll talk with you soon!
