What is AI Governance?
AI Governance encompasses the policies, processes, standards, and organizational structures that guide how artificial intelligence is developed, deployed, monitored, and retired within an organization. It ensures AI systems align with business objectives, ethical principles, legal requirements, and risk tolerance.
Core Components
Policy Framework
- Acceptable use policies for AI
- Data governance for AI training
- Model development standards
- Deployment and monitoring requirements
Risk Management
- AI risk assessment methodologies
- Bias and fairness evaluation
- Security and privacy controls
- Incident response procedures
Accountability
- Clear ownership and responsibilities
- Audit trails and documentation
- Performance monitoring
- Regular reviews and updates
Why AI Governance Matters
As AI becomes more prevalent in business operations, governance ensures:
- Compliance with emerging regulations (EU AI Act, NIST AI RMF)
- Protection against reputational and legal risks
- Consistent quality and reliability of AI outputs
- Ethical alignment with organizational values