The Changing Landscape of AI Governance in Organisations
Over the past few years, many organisations have relied on a simple statement claiming to use artificial intelligence (AI) responsibly. However, as enterprise buyers, especially in government, defence, and critical national infrastructure sectors, increasingly embrace AI, the focus has shifted towards how AI is governed rather than simply whether it is used.
The Evolution of the AI Question
Requests for proposals (RFPs) and invitations to tender (ITTs) now demand a deeper understanding of AI governance. Questions have transitioned from generic inquiries about AI usage to specific queries about controls for generative AI, data sovereignty, human oversight, and compliance with various regulations. The emphasis is on data protection, operational resilience, and supply chain security.
Organisations are being pressed to disclose where client data is processed, how AI-assisted outputs are validated by humans, and the measures in place to protect confidential information. The days of vague assurances about responsible AI practices are over.
Many service providers find themselves using AI in a haphazard manner, lacking structured governance and accountability.
The Importance of Evidence in AI Governance
While organisations may claim to use AI, few can provide concrete evidence of how AI is integrated into their operations. This lack of transparency poses significant risks in terms of data protection, security, and compliance. Buyers are now interested in past AI incidents, near misses, and lessons learned when evaluating potential suppliers.
Significance of AI Governance in Sensitive Sectors
In government, defence, and critical national infrastructure, AI plays a crucial role in decision-making processes that directly impact citizens. From triaging cases to predictive maintenance, the use of AI must be transparent, fair, and accountable. Suppliers operating in these sectors are expected to adhere to stringent governance standards.
The implications of AI governance extend beyond privacy and intellectual property concerns to encompass reliability, robustness, and safeguarding sensitive operational data.
Elevating AI Governance for Competitive Advantage
Implementing robust AI governance practices does not hinder innovation; rather, it strengthens the foundation for scalable and defensible AI use. Conducting an AI procurement readiness assessment can help organisations prepare for client inquiries and demonstrate a structured approach to AI governance.
By aligning with standards such as ISO/IEC 42001 and investing in AI security training, organisations can differentiate themselves in a competitive market by showcasing a well-defined AI management system.
Harmonizing People, Processes, and Assurance in AI Governance
While policies and frameworks are essential, the true test lies in ensuring that employees understand the boundaries of AI usage and know when to seek guidance. Comprehensive AI security and governance training is vital to equip staff and managers with the knowledge to navigate AI-related challenges effectively.
By integrating AI governance seamlessly into existing security and GRC practices, organisations can position themselves as trustworthy partners capable of handling high-value and sensitive projects.
