An approval matrix is the simplest governance tool an SMB can adopt. It answers one question for every action an AI can take: who has to say yes?
A starting template
| Action | Low risk | Medium risk | High risk |
|---|---|---|---|
| Reply to a customer | Hours, directions: AI alone | Billing questions: human approves | Complaints, disputes: human decides |
| Spend or commit money | Under $250: AI alone | $250–$2,500: manager approves | Over $2,500: owner decides |
| Change a record | Add a note: AI alone | Update a status: human approves | Delete or refund: human decides |
Set your own thresholds — the point is that they're written down before the AI goes live.
How to use it
- List every action the workflow can take.
- Assign each a risk tier and an approver.
- Build the rules into the workflow itself, not a policy document nobody reads.
- Review the matrix monthly. Loosen it only when the data supports it (see Earned Autonomy).