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AI governance

The policies, roles, and controls that keep AI use safe, compliant, and aligned with the organization.

What it is

  • Governance is how an organization decides what AI it uses, how, and with what safeguards and accountability.
  • It spans policy, risk assessment, approval, monitoring, and clear ownership.

How it works

  • Define acceptable use, data handling rules, and who approves what.
  • Assess risk by use case (a chatbot drafting emails is not a medical decision tool).
  • Monitor in production and keep humans accountable for outcomes.

Trade-offs

  • Good governance enables faster, safer adoption; heavy-handed governance can stall it.
  • The right level scales with the risk of the use case.

When to use it

  • Before scaling AI across an organization, and proportionate to each use case's risk.
  • Where regulation applies (e.g. the EU AI Act) or sensitive data is involved.

Common pitfalls

  • No policy at all, or a blanket ban that drives shadow use.
  • One-size-fits-all rules that ignore risk differences.

Quick check

What is the core purpose of AI governance in an organization?

Related concepts

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AI governance: explained · SDEN