AI governance – why you need board-level engagement

When most organisations talk about artificial intelligence, the conversation starts (and often ends) with the tech team. What tools are we using? How do they work? Are they secure?

But as AI becomes more embedded in processes, from recruitment and marketing to pricing and procurement, it becomes clear this isn’t just a technical issue; it’s a business-wide risk and opportunity. That means it has to be a board-level conversation.

The question isn’t just what AI can do for you

It’s what it should do, and how you decide and control that.

The temptation is to treat AI as a digital solution that sits in the background, quietly improving efficiency or insights. But the reality is that AI can shape outcomes in very human ways – from who gets a job interview, to which customers are offered discounts, to how complaints are prioritised.

That makes governance critical. Not just to meet legal and regulatory standards, but to uphold your organisation’s values and reputation.

Why the board should care

Good AI governance goes beyond data security and model accuracy. It touches on:

• Reputation – If an AI system creates biased, unfair or unexplained outcomes, it can destroy the hard-earned trust you’ve generated.
• Risk – Poorly governed AI can lead to discrimination claims, regulatory investigations and legal exposure. You may also find your insurers fight against covering a claim if you can’t show you took suitable steps to prevent these issues.
• Accountability – You can’t pin the blame on your AI systems, good AI governance involves taking responsibility.
• Due diligence – Whether it’s a new client, investor or lender, AI is increasingly being seen as a risk point and a key part of the due diligence processes.

This isn’t about fear mongering. It’s about staying in control.

What does good governance look like?

It starts with asking the right questions – and making sure they’re being asked at the right level.

• Do we know where and how AI is being used across the business?
• Who has oversight – and are they empowered to challenge or pause a system?
• Are ethical considerations built into procurement and deployment?
• What processes are in place if things go wrong?
• When was the last time the board reviewed our approach?

If the answer to any of those is “not sure”, then it’s time to act.

Use our AI Governance Toolkit to get started

We’ve created a practical, easy-to-follow toolkit to help businesses put the right structure around AI use. It’s designed to help legal, compliance, and leadership teams work together to ask better questions and make clearer decisions.