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Intermediate4 min read

AI Governance & Compliance

AI governance sets organizational policy for what models and data can be used, by whom, and under what oversight.

Overview

Beyond technical controls, an organization deploying AI needs policy-level answers: which models are approved for use, what data may be sent to them, who can approve a new AI use case, and how that’s all documented for audit or regulatory purposes.

Where It Fits

Governance Policy

Use Case Review

Approved Models/Data

Deployed Feature

From policy to a deployed AI feature

Key Points

Approved model/vendor list
Many organizations restrict which model providers or model families may be used, based on data handling and compliance terms.
Data classification policy
Governance typically defines what categories of data may or may not be sent to a third-party model provider.
Audit trail
Regulatory and internal audit needs usually require documenting which AI systems exist, what they do, and how they were reviewed.

Interview Question

What does “AI governance” actually mean in an enterprise setting, beyond general security practices?

It’s the organizational policy layer above individual technical controls — which models and providers are approved, what data classifications may be sent externally, who signs off on a new AI use case, and how all of that is documented for audit or regulatory review. Security controls implement the policy; governance decides what the policy should be.

Explain It in 30 Seconds

AI governance sets organizational policy for AI use — approved models and providers, data handling rules, and an audit trail for review — as the policy layer that technical security controls then implement.

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