Glossary
AI Governance
The structured framework of policies, roles, controls and accountability mechanisms that ensures AI systems are deployed safely, fairly and in compliance with applicable law.
Term: AI Governance
AI governance is the structured framework of policies, roles, controls and accountability mechanisms that ensures AI systems are deployed safely, fairly and in compliance with applicable law.
Why it matters
UK boards now face regulatory and investor pressure to demonstrate structured oversight of AI. The EU AI Act creates binding obligations for operators of high-risk AI systems, the ICO has issued specific guidance on AI and data protection and ISO 42001 has established the first international AI management system standard. Without a governance framework, organisations cannot evidence the decisions they make about AI use, the risks they accept or the controls they apply.
For regulated organisations in particular, the absence of AI governance is becoming a material audit finding. Boards are being asked to attest to AI oversight in the same way they attest to data protection and information security.
How it works in practice
An AI governance programme typically establishes an AI policy, assigns accountable roles, defines an inventory of AI systems in use, sets impact assessment requirements and creates operational controls covering procurement, deployment and monitoring. ISO 42001 provides the structural template most UK organisations use to anchor this work and align it with EU AI Act obligations.
Related terms: CIA+EFT Framework.
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