AI Jargon Buster
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What is AI Governance?
AI Governance is the system of rules, policies, and oversight structures that an organization puts in place to manage how artificial intelligence is developed, deployed, and used. It acts as a framework for decision-making, ensuring that every AI project aligns with company values, legal requirements, and safety standards. This process covers critical questions such as who has the authority to approve new AI tools, how potential risks are assessed before launch, who remains accountable for automated decisions, and how the company maintains compliance with evolving government regulations. By establishing these guardrails, organizations can innovate while minimizing the chance of bias, data leaks, or unintended errors.
Why this matters to you
If your company is using AI, governance provides the essential rules of the game. It protects your organization from legal risks and reputational damage by ensuring that AI tools are used safely and ethically. Good governance creates a clear chain of command, so employees know exactly which tools are approved for work and how to handle sensitive data, acting as the organizational equivalent of traffic laws for new technology.
How you might hear this
The board established an AI governance committee to review all proposed AI projects and ensure they meet the company's risk and ethics standards.
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