Module 5 Lesson 5: Corporate AI Governance Frameworks

Governance is not about slowing down; it's about "Brakes that allow you to go faster." If your employees know exactly what is allowed and what is forbidden, they can innovate with confidence.

1. The Responsible AI Board (RAIB)

For any company larger than 50 people, AI should not be "managed by IT alone." You need a cross-functional board.

• Who is on it?:
  • CTO/CIO: For technical feasibility and security.
  • Legal/General Counsel: For compliance and IP risk.
  • HR Leader: For impact on employees and bias.
  • Product/Business Head: For ROI and customer value.
  • Ethics Lead: (Ideally) To represent the user's and society's interests.

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2. The Internal AI Policy: A Template

Your corporate AI policy should answer four questions:

1. Which tools are "Approved"?: Have you vetted ChatGPT Enterprise? Is the free version of Claude banned for confidential work?
2. What data is "Off Limits"?: Explicitly list things like "Source Code," "Patient Records," and "Draft Financials" as forbidden from public AI.
3. How is Output Verified?: Who is responsible for checking the facts? (Rule: "The person who uses the AI is responsible for the final output").
4. How do we report a "Near Miss"?: If an AI gives a weird or biased answer, where does the employee report it so the board can investigate?

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3. The NIST AI Risk Management Framework (RMF)

A standard provided by the US government that many companies use as a guide. It has four functions:

1. GOVERN: Establish the culture of risk management.
2. MAP: Identify the context and risks of a specific AI project.
3. MEASURE: Quantify the bias, accuracy, and security.
4. MANAGE: Implement the controls (HITL, Guardrails).

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4. Measuring "Governance Success"

Governance is working when:

• Shadow AI is eliminated: Employees use the "Secure Internal Portal" because it's better than the public version.
• Incidents are caught early: The board reviews a "Bias Report" before a new tool is deployed.
• Innovation is Scalable: A modular "Security Review" process allows you to launch 5 AI features a month instead of 1.

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Exercise: The Policy Pitch

Imagine you are the CEO. You need to write a 1-paragraph memo to the staff about AI.

1. The Goal: "We are embracing AI to..." (What is the positive?)
2. The Red Line: "However, you are strictly forbidden from..." (What is the negative?)
3. The Responsibility: "If you use an AI for a task, you are personally responsible for..."

Challenge: Keep it under 100 words so people actually read it.

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Conclusion of Module 5

You have mastered the most difficult part of AI: the human and ethical dimension. You now know how to build a system that is not only powerful but also Safe, Fair, and Legal.

Next Module: we move into the final stretch of implementation: AI and Decision Making.