What is an approved AI tools list?
Quick answer
An approved AI tools list is a short table of the AI tools a company allows for work: the tool, the plan or account to use, who may use it, what it is approved for, the most sensitive data allowed in it, the settings that must stay on, an owner and a review date.
Last updated
Take the free module →Module 2 of the free Intro to AI Automation course, about 8 minutes. No account needed.
Updated · By Robert Breen
Why it matters for a small business
Most small offices do not have an AI problem. They have an unlisted AI problem. One person uses a free chatbot on a personal login, another pays for a note-taker on a company card, and a third installs a browser extension that reads every page. Nobody chose these tools, so nobody checked where the data goes. That is shadow AI, and the fastest fix is not a ban. It is a list that makes the approved way the easy way.
The list also does work a policy cannot do alone. Your AI acceptable use policy says "approved tools only." The list says which ones, on which account, for which jobs, and up to which level of your data classification. When a client or insurer asks what AI you use, the answer is already written down.
What a row on the list looks like
| Column | Example |
|---|---|
| Tool and account | ChatGPT, company Business workspace |
| Approved for | Drafting emails, summarizing notes |
| Highest data level | Internal (names removed) |
| Key settings | Training off, memory off on shared logins |
| Owner and review date | Office manager, every six months |
A free template with these columns is in the AI governance starter kit.
In a real lesson: Choose the AI Assistant Your Team Should Use, Tested on ChatGPT, Claude, Gemini and Copilot
In the Choose the AI Assistant Your Team Should Use lesson, Carla, the office manager at Ridgeline Insurance Agency (a made-up agency), pastes the same task into ChatGPT, Claude, Gemini and Microsoft Copilot: a client reminder email and a table of this week's tasks. She scores each answer on the facts, not the style.
The choice she makes at the end is the first row of an approved tools list. The lesson's point that client work belongs in the account the company pays for and controls is the rule the list writes down for everyone.
Try this lesson free or read the step-by-step guide.
Common confusions
Approved tools list vs AI policy
The AI policy sets the rules. The list names the tools those rules allow. Keep them separate so you can add a tool without rewriting the policy.
Approved tools list vs vendor review
An AI vendor risk assessment is the check you run before a tool goes on the list. The list is the result.
Tips
- Start with one main assistant on a business plan. A short list is easier to follow.
- Add a simple request form so people ask before they sign up for something new.
- Put the review date on every row. AI plans and settings change often.
Related terms
More Business terms
Where you use it: free lessons
- Choose the AI Assistant Your Team Should Use, Tested on ChatGPT, Claude, Gemini and Copilot (ChatGPT, Claude, Gemini and Copilot, 8 min)
- Roll Out a Team AI Policy in One Afternoon using Claude (Claude, 10 min)
- Know What Never Goes into AI: a Four-Level Data Cheat Sheet using ChatGPT (ChatGPT, 7 min)
Frequently asked questions
- How many AI tools should a small business approve?
- Usually one main assistant, plus a few tools for specific jobs, such as a note-taker or an automation tool. Every extra tool is another account to set up, check and remove when someone leaves.
- Should free AI tools be on the list?
- Only if you have checked how they handle your data and decided which data level they may see. Many teams allow a free tool for public information only and keep client work in the company account.
- Who keeps the approved tools list?
- One named owner, usually the office manager or operations lead. They review requests, check new tools and update the list at least every six months.