Are Your Policies Ready? As generative AI tools like ChatGPT, Claude, and Gemini become embedded in everyday business workflows, organisations face new and urgent challenges around data governance.

These tools are not just consuming data—they’re generating it. From automated content creation to advanced analytics, generative AI is reshaping how information is handled, shared, and applied. But without the right guardrails in place, this innovation comes with significant risks.

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Why Generative AI Demands New Governance Thinking

Traditional data governance frameworks often fall short in today’s AI-driven environment. Generative AI introduces new issues:

• Data lineage: Can you trace where your training data came from?

• Compliance risks: Are employees using public AI tools to process sensitive information?

• Output accountability: Who’s responsible when AI-generated content is inaccurate, biased, or harmful?

To mitigate these risks—and fully leverage the power of AI—organisations must modernise their data governance practices.

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Key Governance Priorities in the AI Era

1. Clear Usage Policies

Define which tools are approved, what they can be used for, and how employees should handle sensitive data. Without guidance, shadow AI practices can create major compliance gaps.

2. Training Data Oversight

If you’re building or fine-tuning AI models, ensure all training data is sourced ethically, documented clearly, and compliant with regulations like GDPR and the upcoming EU AI Act.

3. Model Transparency

Work with your data teams to document model decisions and datasets. Maintain audit trails, especially for high-impact or customer-facing applications.

4. Bias and Fairness

Build fairness into your governance strategy. Regularly test models for bias and ensure data used is diverse and representative.

5. Vendor Governance

Scrutinise third-party AI providers just as you would any data processor. Understand their data handling, model training practices, and compliance readiness.

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Make Governance a Team Effort

AI governance is not just an IT issue—it requires alignment across legal, HR, security, data, and business teams. A central governance task force can help coordinate policy development, enforcement, and oversight.

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Final Thoughts

Generative AI is transforming how we work—but without modern governance, it can quickly introduce risk. Now is the time to review and update your policies, collaborate across functions, and put the right safeguards in place.

Strong data governance doesn’t slow innovation—it enables it.