Sage Wolf Partners — Artificial Intelligence (AI) Policy

Effective date: February 17, 2026   |   Version: 1.0

Sage Wolf Partners (“SWP,” “we,” “us,” or “our”) uses select artificial intelligence (“AI”) tools to improve efficiency, consistency, and service quality. This policy explains how we use AI, how we protect client information, and what safeguards/guardrails we apply. This policy is intended for clients and website visitors.

1. Scope

This policy applies to (a) our internal use of AI tools to support bookkeeping, payroll coordination, reporting, and advisory services; and (b) any AI-enabled features we may use in our website content and communications. This policy does not replace our Master Service Agreement, Statement of Work, terms, privacy policy, or confidentiality obligations.

2. What We Use AI For (and What We Do Not)

Permitted use cases

·       Drafting and refining non-client-specific content (e.g., website copy, educational materials, checklists, templates).

·       Summarizing our own internal notes or publicly available information (no client confidential data).

·       Creating first-draft outlines for reports, meeting agendas, and client communications that are then reviewed and edited by SWP.

·       Assisting with data interpretation and pattern identification when the underlying numbers are sourced from your accounting system and validated by SWP.

Uses we do not allow

·       Using AI as a substitute for professional judgment, accounting standards, or tax/legal advice.

·       Allowing AI to make autonomous decisions that affect client deliverables (e.g., posting journal entries, changing payroll settings, initiating payments) without human review and approval.

·       Uploading confidential client information into public AI tools or any tool that may use prompts/inputs to train its models without an appropriate agreement and client consent.

3. Data Protection and Confidentiality

Protecting client confidentiality is a core SWP standard. We apply the same or higher controls for AI tools as we do for any other third-party technology vendor.

Client data handling rules

·       Minimum necessary: We only use the minimum amount of information needed to accomplish the task.

·       De-identification: When feasible, we remove or mask names, account numbers, personally identifiable information (PII), and other identifiers before using AI.

·       No public tools for client confidential data: We do not input client confidential data into consumer/public AI tools.

·       Approved tools only: If AI is used with any client-related context, it must be through SWP-approved tools with appropriate security and data handling terms.

·       Access controls: Only authorized SWP personnel may access AI tools and client data, using role-based permissions and multi-factor authentication where available.

What counts as confidential or restricted data

·       Banking details, account numbers, login credentials, payment details, and tax IDs.

·       Payroll details, employee data, and any information that can identify an individual.

·       Client financial statements, transaction-level data, customer/vendor lists, contracts, and internal business plans.

4. Accuracy, Quality Control, and Human Oversight

AI outputs can be incomplete, inaccurate, or inconsistent. SWP treats AI output as a draft or assistant input, not a source of truth.

·       Human review: A qualified SWP team member reviews AI-assisted work before it is used in client deliverables or recommendations.

·       Validation: We validate key figures against source systems (e.g., accounting platform reports, bank feeds, payroll records).

·       Documentation: Where AI materially influences an analysis, we retain sufficient notes to explain the basis of conclusions.

5. Client Transparency and Consent

We believe in transparency. Depending on the engagement and the tools used, we may disclose AI usage in our Master Service Agreement, Statement of work or in writing.

·       If a service requires sharing client confidential information with an AI-enabled third-party vendor, we will provide written disclosure and obtain appropriate client consent.

·       Clients may request that SWP not use AI tools for certain categories of work. We will discuss feasible alternatives, impacts on turnaround time, and pricing.

6. Security and Vendor Management

SWP evaluates AI vendors using a risk-based approach similar to other technology vendors.

·       We review vendor terms, data retention practices, and whether inputs are used for model training.

·       We prefer vendors that offer enterprise controls (e.g., admin controls, retention limits, and clear contractual commitments).

·       We periodically reassess tools, settings, and access logs and update this policy as the technology changes.

7. Intellectual Property and Copyright

·       We do not intentionally use AI to generate content that infringes third-party intellectual property.

·       Any AI-assisted content used for client deliverables is reviewed and edited to reflect SWP’s original work product and professional judgment.

8. Acceptable Use Standards (Staff and Contractors)

All SWP personnel and contractors must follow these standards when using AI tools:

·       Use only approved tools and accounts for business purposes (no personal AI accounts for client work).

·       Never input credentials, secret keys, or sensitive client data into prompts.

·       Do not rely on AI outputs without verification; escalate uncertain items for review.

·       Report suspected data exposure, tool misuse, or unusual outputs immediately.

9. Incident Response

If we suspect that client information was exposed or mishandled in connection with AI tools, we will act promptly.

1.     Contain: disable access, suspend tool use if needed, and preserve logs.

2.     Assess: determine what information was involved, scope, and potential impact.

3.     Notify: communicate with affected clients as appropriate and as required by law/contract.

4.     Remediate: update controls, retrain personnel, and revise processes to prevent recurrence.

10. Updates and Contact

We may update this AI Policy from time to time to reflect new tools, legal requirements, and best practices. The latest version will be posted on our website.

Questions? Contact us at: hello@sagewolfpartners.com