What is artificial intelligence governance, and why does my business need it?

AI governance is the set of policies, processes and controls that determine how AI tools are used within your organization. It covers everything from which tools employees are allowed to use to how sensitive data can and cannot be shared with LLM systems. Without governance in place, your business faces increased risk of data leaks, compliance violations and legal liability. Research shows that organizations without a formal AI policy experience significantly more costly breaches when incidents occur.