AI governance is the framework an organization puts in place to manage its AI systems responsibly. This covers who can build and deploy agents, what data they can access, how outputs are reviewed, how errors are handled, and how the organization demonstrates compliance to regulators or auditors.
Without governance, AI systems can produce biased outputs, access data they should not, make consequential errors without accountability, or violate regulations. In banking and insurance, governance is also a direct regulatory obligation — not just best practice.