By Briar Christensen, Principal Advisory Consultant
AI governance: what is it?
AI Governance: What It Is and Why It is Important
As artificial intelligence (AI) continues to revolutionise industries, businesses in New Zealand are increasingly adopting AI technologies to stay competitive. However, with the great power of AI also comes great responsibility. Enter AI Governance – an essential aspect of business governance ensuring that AI is used ethically, responsibly, and effectively. Let us dive into what AI Governance is and why it matters.
What is AI Governance?
AI Governance is the set of policies, practices, and procedures that guide the development, implementation, and management of AI. It includes the ethical, legal, and operational aspects of AI, ensuring that all systems are transparent, accountable, and aligned with what is morally acceptable.
The key components of AI Governance include:
- Ethical Guidelines: Establishing principles that ensure AI is developed and used in a way that respects human rights, privacy, and fairness.
- Compliance: Adhering to your business’ contractual obligations, and local and international laws and regulations governing AI use.
- Risk Management: Identifying and mitigating the risks associated with AI, like bias, cyber security issues, and unintended consequences.
- Transparency and Accountability: Ensuring that AI systems are explainable, and decisions have visibility that can be audited and traced back.
- Stakeholder Engagement: Involving diverse perspectives from stakeholders, including customers, employees, and other key stakeholders, in the AI governance process.
Why AI Governance Matters
We believe all businesses in New Zealand should be proactive in managing their AI systems and AI Governance. The cost of failing in this endeavour is high: loss of customer trust and significant reputational damage. With the rise of GenAI and other AI technologies, we are all navigating uncharted waters. In today’s highly connected digital world, trust is essential. Your customers need to feel confident that your AI systems are used responsibly, and their data is protected. Robust AI Governance helps build and maintain this trust by ensuring transparency and the ethical use of AI. This is especially important for people for whom trust, and privacy are top priorities.
AI Governance can help identify and mitigate bias, promoting fairness and aligning a commitment to diversity and inclusion. Our stance is that with the rapidly evolving global regulatory landscape around AI, staying compliant is crucial, including adherence to the NZ Privacy Act (2020). An AI Governance Framework can also reduce your operational risk, improve efficiency, and help you avoid costly mistakes. And as many of our clients already know, contrary to seeming restrictive, in effect AI Governance does the opposite – by providing a clear framework and a safe environment for innovation.
Get Started with AI Governance
For New Zealand businesses looking to implement AI, AI Governance is not just a buzzword but a crucial step in leveraging AI responsibly and effectively. As we all continue to embrace AI in our daily lives, let’s do so with a commitment to AI Governance that safeguards our values and futures.
To get started with your AI Governance Framework, contact Stellar Advisory on 0800 228 872, or email us on bi@stellarconsulting.co.nz.
