The Coordination Crisis in AI Governance

In large organizations AI governance is a coordination problem.

I’m happy to say that we’ve reached some kind of an inflection point in the life cycle of AI governance. Two years ago this was barely on anyone’s radar. Today I can’t name a single large organization that doesn’t have substantial resources dedicated to AI governance and regulatory compliance.

That’s good news.

What I’ve noticed talking to clients and potential clients over the last few months, however, is that this tends to create its own problem. In some ways large organizations have too much AI governance.

Let me explain.

I work with organizations of all sizes. At a smaller company, like for example a Series B startup, there might be one person hired to take on the role of AI governance lead. At a larger organization, staffing is much more diffuse.

A large global organization might have:

  • governance policies for each geography

  • governance policies for each industry or vertical

  • governance policies by department

Additionally they may also have various global centers of excellence, steering committees, and working groups.

Two years ago companies brought us on to help them roll out AI governance. Today I’m seeing the trend of companies wanting to bring us on to organize the governance that they have. Ultimately there has to be one system that works for the entire organization.

Fundamentally AI governance is a leadership issue. It works best if the board and C-level executives are very clear on the vision and deliverables, a vision that works across geographies and industry verticals. When AI governance is instead run across dozens of little fiefdoms, strategic leadership gets obscured.

About the Author

John Rood is the founder of Proceptual, where he helps organizations build practical AI governance systems. He’s an ISO 42001 Lead Auditor and lead instructor for Michigan State University’s AI Governance Certification. His writing has appeared in HR Brew and Tech Target.

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