Why AI governance is needed now

As the landscape of AI continues to shift, organizations are increasingly leveraging AI technologies to drive innovation, enhance operational efficiency, and deliver value to stakeholders. However, AI’s transformative potential also brings significant challenges.

AI adoption is progressing quickly
Organizations are increasingly investing in AI to scale its use and embed it within operations to enhance decision-making.

  • 52% of organizations say they are moving “fast” in their adoption of Generative AI.1
  • 76% of leaders expect it to drive substantial transformation in their organizations within the next three years.1
  • 75% anticipate that they will make changes to their talent strategies within two years because of Generative AI.2
  • 78% of organizations plan to increase their overall AI spending in the next fiscal year.1


1 Deloitte State of Generative AI in the Enterprise Survey, July/Sept. 2024.
2 Deloitte State of Generative AI in the Enterprise Survey, Jan./Feb. 2024.
AI risks can pose significant reputational consequences
Despite the promising potential of AI, emerging risks remain a barrier to realizing its full value. These risks (e.g., strategic, operational, financial, and compliance) can pose reputational consequences if not addressed properly, ultimately eroding trust among internal and external stakeholders. Key risks include but are not limited to:

  • Inaccuracy and hallucinations.
  • Intellectual property infringement and confidentiality violations.
  • Unethical use or bias.
Importance of AI governance
Effective AI governance is crucial for supporting board engagement and effective oversight of AI. The overarching benefits of robust AI governance may include:

  • Increased brand equity and trust, leading to new customers and improved employee retention.
  • Reduced costs from potential legal, regulatory, and other remediation activities.
  • More accurate information for improved decision-making.
  • A positive impact on society with ethical and responsible AI use.

Introducing the Deloitte AI Governance Roadmap

To navigate complexities and help ensure responsible AI deployment, it is important to establish a robust governance framework.

This roadmap offers an overview of governance activities and structures, including key questions and resources for boards to consider in their oversight of AI, regardless of the organization’s stage in its AI journey. Modeled after the Deloitte Governance Framework, the roadmap covers six key areas.

Key questions for the board to consider

Does management have a current “inventory” of how machine learning AI and Generative AI are being used in the company?<br><br>Does management have a strategy for how they plan to utilize AI in strategic objectives and functional areas or in other ways?<br><br>Does the board have the experience and expertise to advise on the strategy and then monitor progress of the implementation?<br><br>Does the board have a clear vision on how the AI initiatives are overseen across the governance structure?<br><br>Does the board understand the risks and opportunities associated with the AI strategy?

Explore more key questions in our full report
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