Generate Policies with AI

Create compliant HR policies from scratch using Policy Studio

5 min readUpdated 11 January 2026Reviewed for UK law

What is Policy Studio?

Policy Studio lets you generate complete, legally compliant HR policies from scratch using AI. Simply select a policy type, optionally add context about your company, and Bounda creates a ready-to-use policy grounded in UK employment law.

Not just templates: Unlike generic policy templates, Bounda generates policies tailored to your tone profile, considers your existing handbook policies, and includes all current legal requirements — including ERA 2025 changes.

When to Use Policy Studio

Starting from Scratch

You don't have an existing policy for this area and need to create one from nothing.

Filling Compliance Gaps

Gap Analysis showed you're missing a required policy — generate it instantly.

New Legal Requirements

A new law requires a policy you don't have (e.g., Neonatal Leave after April 2025).

Fresh Start Needed

Your current policy is so outdated it's easier to start fresh than rewrite it.

Already have a policy?

If you have an existing policy that needs updating, use the Section Analyser instead. It analyses your current content and suggests improvements while preserving what's already good.

Step-by-Step Guide

1

Select a Policy Type

Choose from 50+ policy types organised into three categories:

Core (Legally Required)

Policies that UK law requires employers to have:

DisciplinaryGrievanceHealth & SafetyEqual OpportunitiesSexual HarassmentWhistleblowing+ more
Recommended

Best practice policies that most employers should have:

Sickness AbsenceAnnual LeaveData ProtectionPensionWorking Hours+ more
Optional

Additional policies depending on your business needs:

Remote WorkingSocial MediaDress CodeExpensesTraining+ more
2

Add Context (Optional)

Tell the AI about your specific requirements. This helps generate a more tailored policy:

Example context you might add:

"We're a tech company with fully remote employees. Include specific provisions for home office setup and equipment."
"We offer enhanced maternity pay of 12 weeks full pay followed by statutory. Make sure this is included."
"We're in the food industry so need to emphasise hygiene and specific food safety requirements."

Tip: Even without context, the AI uses your tone profile and considers your existing policies to create something that fits your handbook.

3

Generate

Click Generate Policy and wait while Bounda creates your policy. This typically takes 1-3 minutes — our AI is doing deeper legal analysis so the output is stronger and more defensible than a quick draft.

During generation, the AI:

  • Identifies all legal requirements for the policy type
  • Applies your tone profile (formality, voice, company reference)
  • Checks your existing policies to avoid duplication
  • Incorporates any context you provided
  • Flags items needing your review
4

Review the Generated Policy

After generation, you'll see your policy along with helpful context:

Legal Framework

Shows which laws and regulations were used (e.g., "ERA 1996 ss.94-98", "ACAS Code of Practice")

Included Elements

Key components included in the policy (e.g., "Right to appeal", "Investigation process")

Notes for Review

Items needing your attention (e.g., "Confirm enhanced pay rates", "Add HR contact details")

5

Edit if Needed

Click Edit Policy to make any changes before saving:

  • Fill in company-specific details (contact names, enhanced benefits)
  • Adjust wording to match your preferences
  • Add or remove sections based on your needs
  • Address the "Notes for Review" items

The policy uses markdown — you can format with # headings, **bold**, bullet points, etc. Preview your changes in real-time.

6

Save to Your Handbook

Click Save Policy to add it to your handbook. The policy will appear in your handbook and count toward your policy limit.

After saving:

  • • The policy appears in your handbook
  • • Gap Analysis updates to show it's no longer missing
  • • The chatbot can now answer questions about it
  • • Future policies will cross-reference it appropriately

What the AI Includes

Every generated policy is built to meet legal requirements. Here's what's automatically included:

Standard Structure

  • • Purpose and scope
  • • Who the policy applies to
  • • Entitlements and process
  • • Responsibilities (employer & employee)
  • • Related policies section

Legal Elements

  • • All statutory requirements
  • • ACAS guidance compliance
  • • ERA 2025 updates where applicable
  • • Proper legal terminology
  • • Required notices and rights

Your Tone Profile

  • • Matched formality level
  • • Consistent company reference
  • • Voice style (human/institutional/direct)
  • • Any additional notes you've set

Smart Cross-References

  • • Links to related existing policies
  • • Avoids duplicating content
  • • "See also" references
  • • Consistent with your handbook

Tips for Best Results

1

Set your tone profile first

Generated policies use your tone profile. Set it up before generating for consistent voice.

2

Generate core policies first

Start with legally required policies. Later policies will cross-reference them automatically.

3

Be specific with context

If you have enhanced benefits or special requirements, mention them in the context field.

4

Always review the notes

The "Notes for Review" section highlights items that need your input — don't skip it!

5

Regenerate if needed

Not happy with the result? Add more context and generate again — it's a different output each time.

Policy Studio vs Section Analyser

Not sure which to use? Here's a quick comparison:

Policy Studio

  • Generate new policies from scratch
  • No existing content required
  • Perfect for filling gaps
  • Creates ready-to-use policies

Section Analyser

  • Analyse and improve existing policies
  • Paste your current content
  • Get compliance findings
  • AI rewrites preserve good content

Frequently Asked Questions

How does AI policy generation work in Bounda?

Policy Studio uses AI trained on UK employment law to generate compliant policies from scratch. You select a policy type, provide context about your organisation, and the AI creates a professionally written policy following your tone profile. All generated content is grounded in current UK legislation and ACAS guidance.

What types of policies can I generate?

You can generate any of the 50+ policy types supported by Bounda, including disciplinary procedure, grievance procedure, flexible working, sickness absence, equal opportunities, data protection, and many more. The Gap Analysis dashboard shows which policies are legally required, recommended, or optional.

Is AI-generated content legally compliant?

AI-generated policies are designed to comply with current UK employment law and follow ACAS guidelines. However, we recommend reviewing generated content and having significant policies checked by a qualified employment lawyer for your specific situation. Bounda helps you get 90% of the way there efficiently.

Can I edit AI-generated policies?

Yes, after generation you can edit the policy content directly in Bounda's editor. Add company-specific details, adjust wording, or make any changes needed. Your edits are saved and can be further refined at any time.

What's the difference between Policy Studio and Section Analyser?

Policy Studio generates new policies from scratch when you don't have existing content. Section Analyser checks and improves existing policies you already have. Use Policy Studio for missing policies, and Section Analyser for policies that need updating or compliance checking.

✨ Start Creating Policies

Ready to generate your first policy? Head to Policy Studio and select a policy type to get started.

Browse More Guides

Related Guides