What is AI governance?

AI governance is the set of policies, approvals and records a business uses to make sure AI is used responsibly — and to prove it.

AI governance turns ad-hoc AI use into something deliberate. In practice it means a written usage policy, sign-off for higher-risk uses, and an audit trail of what was done — so when a client, board or regulator asks how you govern AI, you have an answer backed by evidence.

It matters most for firms handling confidential or regulated data, where "we trust people to be sensible" doesn't hold up. Frameworks like the EU AI Act are raising the bar on accountability, making governance a practical necessity rather than a nice-to-have.

Related guide: What is AI governance (and does your firm need it)?