AI Governance: Using Artificial Intelligence Responsibly

If artificial intelligence (AI) were a car, it would be best compared to an autonomous vehicle: highly technological, intelligent, and complex. Just as clear traffic rules and driving instructions are necessary to keep traffic safe with driverless cars, the same applies to the use of AI in companies. This is exactly where AI governance comes in.

What is AI governance?

Governance refers to a system of rules for managing specific areas. For example, corporate governance defines the principles of management within organizations.

AI governance describes the organizational, legal, and technical framework that companies use to manage the deployment of AI systems, identify risks, define responsibilities, and ensure compliance with legal and internal company requirements. This framework encompasses more than just technical aspects: it is about clarifying responsibilities , complying with legal regulations, and creating processes to ensure security, transparency, and fairness .

What is the goal of AI governance?

The goal is to appropriately manage AI risks and ensure compliance with legal requirements, while simultaneously enabling the responsible use of the technology. This includes, in particular, the protection of fundamental rights, data privacy, non-discrimination, security, and human oversight. It is more about identifying and minimizing risks within the company while at the same time maximizing the benefits from AI tools based on large language models or machine learning. Furthermore, AI governance is about preserving human valuesdespite advancing digitalization.

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Why companies should focus on AI governance

AI can support companies in areas such as automating processes, analyzing large volumes of data, and developing new products and services. For organizations, all these opportunities are within reach thanks to AI.  

However, these opportunities come with risks . Poor decisions made by AI systems, discriminatory algorithms, or data privacy breaches can cause significant damage if, for example, they destroy the trust of customers and partners.

Those who identify opportunities and risks early and establish clear ground rules can better focus on the advantages of the technology and position themselves as innovators.

H2: These are the key principles of AI governance

To use artificial intelligence responsibly within an organizational context, guardrails are necessary. Companies should primarily align themselves with applicable legal requirements.  

Depending on the use case, the central legal foundations include the AI Act and the General Data Protection Regulation (GDPR). Additional requirements may arise, particularly in areas such as labor law, copyright, competition law, trade secret protection, and industry-specific regulations. Furthermore, employee data protection and industry-specific requirements can play a significant role.  

Principles at a glance

Your AI governance prioritiesare derived from regulatory requirements as well as your company's values and goals. The AI Act does not mandate a uniform governance model for all companies. However, for specific roles and systems—particularly high-risk AI—it does contain concrete requirements regarding risk management, data governance, quality assurance, human oversight, documentation, and monitoring:

• Transparency: Transparency measures must be appropriate to the specific system, its intended purpose, and the context of use. Depending on the use case, this includes disclosing interaction with an AI system, the use of synthetically generated content, the capabilities and limitations of the system, and the relevant information required for proper use.

• Risk management: Companies should establish a documented process to identify, assess, mitigate, and regularly review AI risks. For providers of high-risk AI systems, Article 9 of the AI Act mandates a continuous risk management system.

• Data protection: If personal data is processed during development, deployment, or use, companies must specifically adhere to the principles of the GDPR, ensure a suitable legal basis, uphold transparency and data subject rights, implement data protection by design, apply appropriate security measures, and conduct a data protection impact assessment where necessary. Employees and other users should be informed about data protection risks and secure usage guidelines, and receive appropriate training on AI usage . Depending on the specific processing activities, data subjects must be informed in accordance with the information requirements of the GDPR.

• Ethics: When selecting and using tools, companies should prioritize fairness and ensure that no one is discriminated against.

• Accountability: There must be clear regulations regarding who is responsible for the implementation, monitoring, and maintenance of AI systems.

• Quality assurance: Companies must regularly verify that their AI models continue to comply with AI governance, function ethically, and that corporate and customer data remain protected.

What role does AI governance play in data protection?

AI models are constantly evolving and improving over time, but they require large amounts of training data to do so. Without strict data protection measures, sensitive information can fall into the wrong hands or or be misused be. That is why data protection is an essential pillar for AI governance.  

Learn more in the magazine about the connection between AI and data protection.

Steps for implementing AI governance in your company

Are you planning to introduce AI governance?  

• Start with a detailed assessment: Where is AI already being used in your company, and where will AI tools be needed in the future? Think across departments and processes—AI governance affects everyone and every system throughout the entire organization.

• Establish Rules for using AI within your company. Take into account both current regulations and the needs of your employees, customers, and partners. Involve IT and data protection experts, legal counsel, management, and end-users, and be sure to identify potential risks.

• Implement AI governance and inform your employees, customers, and partners about it.  

It is important for companies to view AI governance as a process. Rules that apply to AI today may be obsolete tomorrow, as the technology is evolving rapidly and requires flexibility from its users. Therefore, it is necessary to regularly reviewwhether adjustments are needed.

Implementing AI governance with expert support from Proliance

AI governance forms the foundation for the safe and responsible use of a technology that could fundamentally change companies and their processes. Through clear rules, transparent processes, and a focus on data protection, you ensure security for employees and customers and make sure that human needs are not overlooked, even in a highly technological world.

If you would like to implement AI governance, our team of around 100 compliance experts is happy to assist you, ensuring that personal data remains protected while your AI tools can continue to evolve and secure your business success.