AI governance requires more than internal use rules

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Overview

Many companies begin AI governance by preparing internal rules for employee use. That is important, but it is not enough. AI use also affects contracts, personal information, confidential information, customer explanations, procurement, vendor management and internal accountability.

Practical perspective

A practical AI governance policy should define permitted use cases, prohibited inputs, approval flows, logging, review standards, customer-facing explanations and escalation points. The legal team should work with business and engineering teams so the rules can actually be followed.

In practice, legal advice is useful only when it reflects the business model, internal rules, counterparty relationship, risk tolerance and timing of the decision. Generative AI can support initial organization, comparison and drafting, but attorneys should remain responsible for final legal judgment.