Artificial intelligence has many benefits beyond merely creating humorous images for social media posts. Companies can use AI to develop marketing materials, craft memos, and support research and development via social media. AI’s capabilities are vast and will continue to expand as such programs become more and more sophisticated. Companies might discover they can save incredible amounts of money while drastically improving their capabilities.

With such benefits, however, there are additional responsibilities and concerns. Artificial intelligence does not operate based on human thought processes. Artificial intelligence can make mistakes that cause problems for a company. Therefore, it would be advisable for business managers to institute AI governing policies.

What is AI Governance?

AI governance is not much different from establishing governing rules for employees and others involved with a company. AI governance refers to internal regulations that create parameters for artificial intelligence’s operations. Such governance can detail how employees and management use AI programs, considering ethical, financial, and other considerations. Since AI’s integration into company operations is relatively new, some managers might not realize how important instituting governance policies are. Here are five compelling reasons that reveal why AI governance is vital to companies and employees.

1 – Assists with Compliance Matters

Companies must deal with regulations and other matters that require compliance. Failure to follow laws and regulations could lead to fines and other legal troubles. Instituting an artificial intelligence governance plan can define how an AI system may assist departments with compliance duties directly related to AI performance. Ironically, regulations may bar or limit AI’s functions, but a governance policy would address the limitations of AI’s role.

2 – Define Ethical Considerations of AI

Companies should adhere to strict ethics and ethical behavior. Employees are not the only ones who meet these adherence requirements. AI systems should adhere to ethical standards, and AI governance regulations may explicitly outline such requirements. For example, AI may face strict regulations that do not violate customer privacy laws.

3 – Detail Proper Oversight of Data

A company may log and record sensitive information about employees and customers. Employees might use AI to secure sensitive data like social security numbers and credit card account information. Many serious problems could arise if a company’s rules for artificial intelligence do not define how to protect sensitive data that AI accesses.

4 – Logging Transparency

Secrecy and artificial intelligence operations might not be compatible. Such an approach could create problems for a company. Establishing detailed transparency about AI usage could be beneficial, including where it is and isn’t used.

5 – Keeping Parties with a Stake Informed

Companies routinely deal with shareholders, private equity investors, partners, distributors, etc. These various entities may wonder how the company utilizes its artificial intelligence. A governance program can effectively communicate necessary information to these parties.

AI Governance Examined

As artificial intelligence becomes more integrated into company operations, businesses need to follow strict ethical guidelines. A well-established AI governance plan could go a long way in this regard. Devising and implementing such a plan might prove valuable to a company’s productivity and bottom line.