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AI governance is the framework that ensures the ethical, transparent, and regulated use of artificial intelligence. It includes policies, processes, and tools that guarantee AI systems operate lawfully, securely, and without bias. In HR, this is particularly important, as AI-based solutions (e.g., recruitment, talent management) often handle sensitive data. Compliance with regulations such as the EU AI Act and GDPR is essential for building trust. AI governance increases employee and customer confidence, reduces legal risks, and creates a competitive edge through transparent and ethical operations.
Yes, AI governance is necessary even when using tools like ChatGPT. Although these tools are developed by external providers, your organization remains responsible for the compliance of data processed through them (e.g., personal or business information). AI governance ensures that the use of ChatGPT is ethical, transparent, and lawful, complies with data protection regulations (e.g., GDPR, EU AI Act), and minimizes risks such as data security breaches or bias. This is especially critical in HR processes where sensitive data is involved.
GDPR focuses on data protection, regulating the handling and safeguarding of personal data. AI governance goes further: it ensures the ethical, transparent, and lawful use of AI systems. While it includes data protection, it also covers fairness in AI decision-making, accountability, and compliance with broader regulations such as the EU AI Act.
IT security systems focus on protecting data and securing technology infrastructure. AI governance, however, ensures the ethical, transparent, and lawful use of AI systems. It extends to fairness in AI decision-making, accountability, and compliance with regulations such as the EU AI Act. AI governance therefore goes beyond IT security, helping build trust, reduce legal risks, and enable ethical AI use across the organization.
Lack of AI governance carries significant risks, including legal sanctions for non-compliance with regulations such as the EU AI Act or GDPR. It can also lead to biased AI decision-making, resulting in discrimination, and data security issues that compromise confidential information. This can undermine trust among clients and employees, damage reputation, and reduce competitiveness. AI governance helps minimize these risks by enabling transparent and ethical AI practices.