An ethical AI policy should help students learn, not simply list prohibited tools. The most useful policy tells students when AI is allowed, what they must disclose, how their work will be assessed, and where human judgment remains essential.
This guide gives educators a practical policy structure and two adaptable rubrics. Institutions should still apply their own privacy, accessibility, academic integrity, and legal requirements.
Start with the purpose of the assignment
AI rules should follow the learning goal. If students are practicing a skill they must perform independently, AI use may need to be limited. If they are learning to review AI output, using the tool may be part of the task.
Ask three questions:
- What must the student know or do after this assignment?
- Which part of the process provides evidence of that learning?
- Could AI assistance hide that evidence?
The answers make a policy easier to explain and defend.
A clear classroom AI policy template
Approved uses
List the uses that are allowed. Examples might include brainstorming questions, checking clarity, generating practice examples, or organizing notes. Name any approved tools if your institution maintains a list.
Restricted uses
State what students must complete without AI. This may include a quiz, personal reflection, oral defense, initial analysis, or calculation. Explain why the restriction supports the learning goal.
Disclosure
Tell students how to report AI use. A brief note can name the tool, the purpose, the prompt or process, and what the student changed or verified. Disclosure should be simple enough that honest use is practical.
Verification and responsibility
Students remain responsible for claims, sources, calculations, and final decisions. AI output can be incomplete, biased, or wrong. Require students to verify information against course materials and credible sources.
Privacy and confidential information
Do not ask students to place personal, protected, confidential, or institution-owned information into an unapproved system. Refer students to the institution’s privacy and security guidance.
Accessibility and alternatives
An AI requirement can create a barrier if a tool is not accessible or available to every learner. Provide an equivalent path when needed. State whom students should contact for support or accommodations.
Consequences and questions
Connect violations to the existing academic integrity process. Avoid creating a separate punishment system based only on suspicion or an automated detector. Give students a way to ask about unclear cases before they submit work.
Rubric for an AI-assisted assignment
Use a four-level scale for each criterion: strong, sufficient, developing, or insufficient.
Subject knowledge
The work applies course concepts correctly and addresses the task. A polished response without sound content should not score well.
Evidence and verification
Claims and calculations are checked. Sources are appropriate and traceable. The student corrects or rejects weak AI output.
Reasoning and decisions
The student explains choices, tradeoffs, and assumptions. The reasoning is specific to the assignment rather than a generic summary.
Responsible AI use
The student follows the allowed-use rules and provides the required disclosure. The submission does not expose sensitive information.
Reflection and revision
The student explains how the tool affected the work, what was changed, and what they learned. The final submission shows human review.
Rubric for an entrepreneurship simulation reflection
Simulation work can reduce dependence on a single take-home answer because it provides a sequence of choices and results. A reflection rubric can assess:
- Decision logic: Does the student explain why a business option was selected?
- Use of evidence: Does the student connect results or course data to the conclusion?
- Tradeoff awareness: Does the student identify benefits, costs, and uncertainty?
- Application: Does the student use relevant entrepreneurship concepts?
- Revision: Does the student state what should change in a future round?
- AI disclosure: If AI was allowed, is its role described and verified?
Do not grade only the simulated company’s final performance. A student may make a defensible decision and receive an unfavorable result. The educational value lies in the quality of reasoning and response.
Put the policy into practice
Share the policy before the first AI-related assignment. Walk through one acceptable and one unacceptable example. Give students a short practice task with feedback before a major grade.
Review the policy at least once per term. Tools and institutional guidance change. Student questions can also reveal language that needs to be clearer.
For team assignments, explain whether students may share prompts and outputs. For individual work, add a brief oral or in-class checkpoint if authorship is important. These steps provide direct evidence without treating every student as a suspect.
Using AI around business simulations
In an entrepreneurship course, AI can help students generate questions, compare stakeholder views, or critique an explanation. It should not replace the student’s decision. Startup Wars gives students a business context in which they make connected choices and reflect on consequences. Faculty can decide where AI supports the process and where independent work is required.
See the Startup Wars FAQ for a high-level description of AI in the platform. Review evidence and evaluation notes before making product claims, or contact the team to discuss an institution’s policy and course design.
About the author
Andrea Martinez
Startup Wars marketing and content contributor
Andrea writes about entrepreneurship education, experiential learning, and the programs and product ideas shaping Startup Wars.