AI systems make decisions that affect people. They can be biased, opaque, or wrong in ways that cause real harm. Without governance, these problems go undetected until they cause damage.
Regulation is increasing. The EU AI Act, sector-specific rules, and emerging standards create compliance obligations. Organisations that ignore governance risk penalties, reputational damage, and operational disruption.
Beyond compliance, governance builds trust. Customers, employees, and partners need confidence that AI is being used responsibly. Good governance provides that assurance.