Introduction to AI Governance – Importance & Benefits

AI has exploded onto the tech scene in the last year, bringing with it huge promises and potential. Enterprises in every industry are eager to leverage AI to improve customer experiences, drive operational efficiencies, and gain a competitive edge. Our clients consistently tell us that their boards, executive teams, and internal stakeholders are clamoring to integrate AI throughout their organizations.

However, many of these same clients acknowledge a significant gap: they currently lack the controls and processes necessary to manage and govern AI effectively. With the rapid evolution of AI capabilities, enterprises are struggling to keep up.

In practice, we observe two distinct approaches to AI governance and usage in organizations.

At one end of the spectrum, there's the "Wild West" approach, where anything goes regarding AI usage. There may be Acceptable Use policies, and someone might attempt to track AI usage, but without real governance, the value and quick wins of AI usage often lead to unregulated and uncontrolled practices.

At the other extreme, some enterprises adopt a "Lock Down" approach. Here, executives, wary of the risks, heavily constrain any AI usage, operating under a "let's see how this all shakes out" mentality. While this can feel safe, it risks leaving organizations behind in the AI revolution.

To fill that need, LogicGate believes in a "Middle Way," or a balanced, Goldilocks approach enabling enterprises to both innovate quickly and ensure safe, governed AI usage.

The Need for AI Governance

Implementing a thoughtful, efficient AI governance capability is crucial for enterprises. This Middle Way allows organizations to move fast with AI while maintaining necessary safety and protections.

Several reasons underscore the importance of AI governance:

1. Visibility: Organizations need a clear understanding of where and how AI is being used.
2. Compliance: Staying ahead of regulatory requirements is essential. With new AI regulations emerging globally, enterprises must be able to scale and demonstrate compliance.
3. Data Protection: Proper governance ensures sensitive or customer data isn’t inadvertently exposed or misused by AI models.

Benefits of AI Governance

The benefits of a robust AI governance framework are significant. LogicGate’s Risk Cloud AI Governance solution helps customers achieve several key advantages:

1. Centralized Visibility: Our solution centralizes information about which AI tools are being used, by whom, and with what data.
2. Best Practice Compliance: Integrating industry-standard frameworks, such as the SIG Lite AI questionnaire and the NIST RMF Framework, helps clients stay compliant with evolving best practices.
3. Data Governance: We assist customers in building and adapting data governance frameworks to ensure safe AI usage.

Getting Started

There is no lack of appetite for guidance and resources when it comes to AI Governance, which is why we’ve developed some key starting points. Focus on your data—specifically, what data is being used—and build your governance framework around that.

Here’s a basic tiering structure:

• Level 1: AI Usage for Research and Study

• • • Use Case: Trial and experimentation
    • Controls: No production personal or customer data, no customer-facing interactions
    • Analysis: Permissive usage with tight controls on data sensitivity

• Level 2: AI Usage for Internal Efficiencies

• • • Use Case: Enhancing internal operations (e.g., GitHub Co-Pilot, Atlassian Intelligence, ChatGPT)
    • Controls: Thoughtful data governance, diligent licensing, and metrics for business impact

• Level 3: AI Usage for Customer Experience Improvement

• • Use Case: Enhancing customer service and product features
  • Controls: Rigorous data governance practices, real-time governance capabilities, and regular reporting to stakeholders

Conclusion

AI holds tremendous promise and potential for businesses. To innovate rapidly and safely, enterprises must adopt a robust AI governance approach. LogicGate’s AI Governance Solution provides a connected and practical framework to help enterprises establish an efficient, modern approach to AI governance. To learn more, check out our new AI eBook: The 4 Gaps in Your AI Governance Strategy and please contact us.