EditorialAI Governance Isn’t Slowing You Down — It’s How You Win
Applying effective governance over AI may seem like a brake on innovation. However, much like in car racing, it is not the straightaway speed that wins Formula One races — it is the precision of braking into the racing line and the speed of the pit crew’s execution. In AI, reliable governance serves as the critical control that allows organizations to move faster and with greater confidence.
AI has rapidly become a cornerstone of modern business operations, from chatbots handling customer service to predictive analytics shaping strategic decisions. A recent study revealed that 80% of public companies have taken some action in response to rapid changes in AI development and deployment, with the most common being the integration of AI into one or more areas of business, including products and services. However, this “all gas, no brakes” approach is, at best, sub-optimal and, at worst, dangerously reckless.
At this point, every organization has experienced at least one failed AI implementation. This is a natural part of the learning curve. After all, top-tier Formula One drivers had a fender-bender or two as teenagers.
However, it’s time to take AI professionally and seriously. While 2023 was a year of experimentation and 2024 was the year of implementation, 2025 is the year of AI showing tangible value. Effective governance over AI, as opposed to being a drag, is the primary tool for achieving value.
How to Start? It Takes a Team
To effectively kickstart governance, corporate leaders like general counsels, CIOs and CROs must work together. This collaboration is essential for mitigating risks, supporting scalability and ensuring organizations realize AI’s full potential while maintaining compliance and trust.
General counsels, for example, bring the legal expertise necessary to navigate evolving regulations and minimize liability. CIOs ensure AI systems are secure, scalable and seamlessly integrated into existing infrastructure. Meanwhile, CROs identify and manage risks, from cybersecurity threats to ethical concerns. Together, these leaders can create a governance structure that not only protects the organization but also enables AI to drive innovation responsibly.
AI governance requires cross-departmental collaboration to ensure compliance and accountability. Governance professionals oversee alignment with ethical standards and corporate policies, while IT and security teams address cybersecurity risks and system integration. Legal experts ensure compliance with data privacy laws, and business leaders assess AI’s operational impact.
A Framework for Reliable AI Governance
Once the team is set, execution does not need to be complex.
It begins with an inventory of AI deployments mapping out who used them and how they were used. Then, invite the AI owners to clarify objectives and assess key evaluation criteria, such as compliance, accuracy and bias, ensuring any AI tool aligns with business goals. Metrics for success also help measure the effectiveness of the tool.
For governance to be effective, a well-structured framework is essential to keep AI systems safe, efficient and aligned with organizational goals. A governance framework starts with this "safe-to-fail" assessment, which identifies gaps and develops policies for ethical AI adoption.
The Benefits of Long-Term Governance Strategies
Identifying gaps and risks is not a result in and of itself. The real result is improvement. Post-assessment, organizations must document findings and address identified risks, such as biases or compliance gaps. Transparency is key, ensuring decision-making processes are explainable and auditable. Once weaknesses are pinpointed, they can be addressed through better procurement, monitoring and oversight of AI tools.
The insights from these evaluations can inform the development of long-term governance strategies. These should include clear policies for selecting, implementing and monitoring AI applications, as well as risk management processes to tackle legal, ethical and operational concerns. Training employees on AI capabilities, limitations and responsible use is also critical in fostering a culture of accountability.
Reliable AI governance enables organizations to harness the benefits of AI while minimizing risks. By embedding governance into AI strategies, businesses can drive innovation, maintain compliance and build trust with stakeholders — crossing the finish line ahead of the competition. A structured approach ensures that AI remains a powerful tool for progress, without exposing organizations to unnecessary risks that could send them to the pits for costly repairs or, worse, out of the race entirely.