The rapid advancements of artificial intelligence (AI) have revolutionized the landscape of higher education. Today’s learners have an unparalleled array of resources at their disposal, allowing them to tailor their educational journey to their individual needs. However, many academics are concerned students may become overly reliant on AI and consequently lose the critical thinking skills needed to complete course-related tasks. These concerns have created a need for instructors to develop an AI policy that prepares students to work with and understand AI technology and usage. This study engaged students in collaboratively developing an AI usage policy to foster responsible use in coursework. In an online scientific communication course, students participated in a two-part activity where they created the course’s AI policy. First, students used a discussion board to discuss ethical considerations, addressing questions about AI’s benefits, drawbacks, and appropriate academic uses. They reviewed and responded to their peers’ contributions, fostering a collaborative exchange of perspectives. In the second phase, students drafted individual AI policy proposals and reflected on ethical AI usage. Data from 25 student reflections revealed key insights. Only one of the 25 students had not used AI. Most students advocated for using AI as a brainstorming and proofreading tool rather than a substitute for critical thinking. Transparency and proper citation of AI usage emerged as recurring themes, with many recommending disclosure statements and limits on AI-generated content in assignments. With AI constantly evolving, students must recognize the benefits and risks of these tools so they can use them effectively and ethically. By involving students in this process, educators can create policies that are both practical and relevant, preparing students to navigate AI professionally. This approach underscores the value of participatory methods in fostering ethical awareness and responsible AI usage in academia.