Why holistic AI governance is essential for companies

Why holistic AI governance is essential for companiesWithout a robust governance framework with holistic risk management, the potential of artificial intelligence (AI) cannot be realised. The reason: safe, responsible and efficient use cannot be guaranteed. This is a key finding of our white paper "AI Governance as the Key to a Sustainable AI Strategy". In it, our experts highlight the complex tasks that need to be mastered when implementing AI solutions for companies and provide practical recommendations for action.

The white paper makes it clear that AI governance is not only essential for compliance, but also a key component of long-term business success. The current "landscape" of AI governance is highly fragmented, which harbours numerous risks. It is therefore all the more important for organisations to take a systematic approach to AI governance that includes principles, strategies, guidelines, standards, risk management and training - and not just because of regulatory requirements such as the EU AI Act.

The involvement of the highest management level and the integration of governance into all business processes is necessary under these conditions. For example, the CEO must ensure that the use of AI is in line with the company's mission and values. Meanwhile, the CIO ensures that AI solutions are developed and deployed in a technically secure manner. Only then can the innovative power of AI be fully realised. Current market insights, a compact, practice-orientated C-suite guide and the presentation of an AI target operating model are used to illustrate the necessary steps in the company.

As AI continues to develop exponentially, the need for a comprehensive governance structure is becoming increasingly urgent. Meanwhile, a major KPMG survey on the topic of generative AI showed that there is a considerable need for action in a number of companies:

To exploit the full potential of AI while mitigating its risks, organizations should firmly establish AI governance internally in a timely manner. This requires a strategic vision as well as a comprehensive understanding of the technology and its impact. The white paper provides solutions for the key decisions that need to be made.