If your business uses AI, governance helps you define where the tools may be used, what data is off limits, who reviews outputs, and who is accountable when something goes wrong.
Four questions to ask
1. Does AI touch client or employee information? Document which tools receive business data, what the provider may retain, and what employees are prohibited from entering.
2. Does AI influence recommendations or decisions? Define when a qualified person must review the output and how important decisions are documented.
3. Do employees know the rules? Written guidance should identify approved tools, prohibited uses, required review, and the process for reporting mistakes.
4. Have contracts and insurance questions been reviewed? Vendor terms and insurance policies vary. Do not assume that an AI-related event is covered or excluded. Review the specific documents with the appropriate legal or licensed insurance professional.
Governance does not need to be complicated. Start with a clear AI-use policy, an inventory of approved tools, human-review rules, and a simple incident process.
This article provides general business information and is not legal, regulatory, tax, cybersecurity, or insurance advice.