What is AI governance? AI governance is the framework of policies and ethical guidelines designed to direct the development and use of AI in a way that ensures safety, fairness, and transparency. It addresses risks like bias and privacy concerns to promote responsible and beneficial AI deployment. Demo AI
Things to know about AI governance
What are the principles of an effective AI governance framework? Why is AI governance important? What are best practices in AI governance? The future of AI governance ServiceNow for AI governance

Any technology that can be used to help society can also be perverted to cause harm. Artificial intelligence (AI) is no exception. At its core, AI simply follows directions—if told to take some action that is harmful or unethical, it will do so unless the right safety filters are in place. At the same time, AI is a representation of the datasets used to train it, and when that data includes harmful or biased information, it can significantly impact the AI's output. This is why responsible AI is so important. It ensures that AI is created and maintained in ways that are ethical, safe, and beneficial to all stakeholders.

To support responsible AI practices, organizations rely on AI governance. This framework of policies, standards, and ethical guidelines shape AI development and use. AI governance offers guardrails that help mitigate risks, from unintentional bias to privacy breaches, and promotes fairness and accountability across AI systems. And, as the demand for AI grows, comprehensive AI governance is becoming ever-more essential for safeguarding both people and organizations from the unintended consequences of interacting with intelligent systems.

Expand All Collapse All What are the principles of an effective AI governance framework?

An effective AI governance framework includes foundational principles that ensure AI systems are developed and deployed responsibly. These principles provide structure and guidance, helping organizations protect themselves and their clients, while building trust in AI technologies:

  • Empathy
    Empathy involves understanding the social impacts of AI and anticipating its effects on stakeholders across different demographics.

  • Bias control
    Rigorous analysis of training data and algorithms helps remove biases that could lead to unfair outcomes.

  • Transparency
    Transparency requires openness about how AI algorithms operate, including data sources and decision-making logic.

  • Accountability
    Accountability ensures that organizations take responsibility for the social, legal, and operational impacts of their AI systems.

In other words, AI governance principles define the overarching values of responsible AI, establishing frameworks to help intelligent systems serve the broader public good.

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Why is AI governance important?

The long and short of it is this: AI should benefit society. AI governance takes this axiom and commits to it, establishing a clear structure for the ethical development, responsible use, and transparent management of AI technologies. When employed correctly, this benefits organization in a variety of ways, including:

  • Effectively managing risk
    Governance helps to more effectively identify, assess, and mitigate risks related to AI. Issues such as unintentional biases, data privacy concerns, and operational failures can be swiftly managed, safeguarding both the organization and individual users from the adverse effects of AI-driven decisions.

  • Establishing compliance and accountability
    With the European Parliament's Artificial Intelligence Act (AI Act) now in place, laws regulating AI have joined the array of data protection and privacy regulations that organizations must adhere to. As new AI legislation emerges and evolves, organizations must proactively ensure their compliance

  • Addressing ethical and moral considerations
    Ideas can journey unexpectedly far. Artificial Intelligence (AI) systems can disseminate concepts widely, and when these concepts foster discrimination or perpetuate prejudice and stereotypes, they can lead to significant societal harm. AI governance is crucial for setting ethical standards that mitigate detrimental biases, thereby ensuring that AI systems uphold fairness, respect individual rights, and correspond with beneficial human values.

  • Maintaining trust
    Despite the growth of AI, many people remain hesitant to trust it. AI governance plays a crucial role in fostering confidence in this emerging technology by enhancing transparency and explainability, as well as mandating that organizations document and convey their AI decision-making processes. By clarifying how AI operates, organizations can strengthen trust with customers, employees, and stakeholders, alleviating worries about the ‘black box’ aspect of AI.

  • Ensuring transparency
    Would you rely on advice from an anonymous online post? Likely not—without a source, assessing its credibility is impossible. AI can also be opaque, complicating the understanding of its decision-making basis. Effective AI governance mandates that organizations clearly document the algorithms, data sources, and processing techniques utilized. Improved transparency leads to increased credibility.

  • Promoting innovation
    As previously addressed, AI can be dangerous. AI governance establishes safeguards that allow organizations to explore new AI applications with confidence, knowing risks are managed and ethical standards are upheld. By providing clear guidelines, governance enables responsible experimentation, fostering innovation without compromising safety or compliance.

What are best practices in AI governance?

Powerful, effective AI governance doesn’t just happen. It demands a dedicated and intentional approach supported by clear policies, ongoing oversight, and full organizational commitment. The following best practices can help ensure that AI governance initiatives deliver on the promise of safe and responsible AI:

  • Prioritize transparent communication
    Open and clear communication with all stakeholders—including employees, end users, and community members—builds trust and understanding. Organizations should actively inform stakeholders about how AI is being used, what its benefits are, and any potential risks that it might represent.

  • Establish an AI culture
    Cultivating a culture that values responsible AI use is at the heart of sustainable governance. Training programs, ongoing education, and clear messaging help embed AI principles into the organization's values, making every team member aware of their role in maintaining ethical AI.

  • Provide oversight through a governance committee
    An AI governance committee can be invaluable in overseeing AI initiatives. This committee should help ensure compliance with AI policies, address ethical concerns, and provide an accountability framework to guide responsible AI practices.

  • Assess risks
    Actively identifying and mitigating risks associated with AI systems can go a long way towards preventing unintended consequences. Organizations may choose to implement internal assessments to monitor data biases, privacy concerns, and potential ethical challenges. Alternatively, consider working with third-party auditors for fully objective risk assessments.

  • Leverage governance metrics
    Using metrics and KPIs allows organizations to monitor adherence to governance policies. Effective metrics generally include measures for data quality, algorithm accuracy, bias reduction, and compliance with regulatory standards.

  • Continually manage and improve
    AI models require periodic adjustments to maintain accuracy and relevance. Continuous monitoring, model refreshes, and feedback collection from stakeholders support long-term performance and ensure the AI system continues to adapt to changes.

The future of AI governance
As AI becomes deeply integrated across sectors like healthcare, education, and criminal justice, the need for clear, enforceable rules will continue to grow. This shift will support more consistent oversight for algorithms in high-impact areas and help mitigate dangerous usage—particularly that which is related to privacy, data rights, and algorithmic biases. Sector-specific standards and cross-cutting regulations will likely be used in tandem, creating a balanced approach that addresses the unique requirements of different industries while still maintaining broad protections. 

Supranational organizations are expected to play an increasingly central role in this changing landscape, fostering alignment on global AI standards that prioritize transparency, accountability, and interoperability across borders. International cooperation will become ever more important, especially as countries adopt diverse regulatory frameworks based on local cultural and political landscapes.  

Finally, governments will place increased emphasis on working alongside private companies to establish secure, transparent AI systems. This approach will make it possible for organizations to share insights and create accountable frameworks that support both innovation and public interest. As AI governance evolves, accountability mechanisms—such as risk-based governance models that vary oversight intensity based on potential impacts—will be critical for building public trust.
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ServiceNow for AI governance
Effective AI governance brings responsibility and morality to the world of AI. And, as intelligent systems continue to evolve and integrate into core business processes, maintaining comprehensive governance frameworks is more important than ever. ServiceNow AI solutions are here to help. Built on the industry-leading Now Platform®, ServiceNow’s AI governance solution can help organizations deliver their AI strategy at scale by connecting strategy, security, legal, risk and compliance, supporting everything from managing intake and demand, AI lifecycle, policy management and risk assessment to continuous monitoring and regulatory compliance. AI is complex and cross functional and by enabling organizations implement structured processes on a common platform helps break silos and deliver trusted AI while minimizing risks, Discover how ServiceNow can take the risk out of your approach to AI; request a demo today!
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