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What is AI governance?

AI governance is the set of policies, roles and processes that determine how an organisation selects, uses, oversees and manages the risks of its AI systems. It gives written answers to practical questions: which tools are approved, which data may be sent to a model, who checks outputs, and what happens when something goes wrong.

Definition

AI governance is the set of policies, roles and processes that determine how an organisation selects, uses, oversees and manages the risks of its AI systems.

What does AI governance cover?

  • Inventory. A list of the AI tools in use, for what purpose and with which data.
  • Policy. Approved tools, prohibited uses and the types of data that may be sent to a model.
  • Risk assessment. For each use, potential harm, the impact of hallucination and the points of human oversight.
  • Logging and monitoring. Especially for agentic systems, a record of who did what and when.
  • Training. Making sure staff use the tools correctly and safely.

When do you need it?

From the moment employees start using AI tools. Pasting customer data into unapproved tools is a common and easily preventable risk. When AI is used in customer-facing decisions or in sensitive areas such as hiring or credit, governance becomes an obligation. Rather than building from scratch, you can use ISO/IEC 42001 and NIST’s AI Risk Management Framework as references.

Regulation for companies working across the EU and Türkiye

Any AI use that processes personal data in Türkiye falls under Law No. 6698, known as KVKK, Türkiye’s data protection law, and the Turkish Personal Data Protection Authority has published recommendations on AI. In the EU, GDPR applies, and providers and deployers must assess their obligations under the EU AI Act. Questions that require legal interpretation should be handled together with your legal adviser.

Related terms

  • KVKK (Turkish Personal Data Protection Law)KVKK is Türkiye's Personal Data Protection Law, Law No. 6698, which sets the rules for processing personal data and the rights of individuals in Türkiye.
  • EU AI ActThe EU AI Act is Regulation (EU) 2024/1689, which classifies AI systems in the European Union by risk level and sets obligations for providers and deployers accordingly.
  • AI hallucinationAn AI hallucination is output in which a language model presents information, a source or a figure that does not exist, fluently and confidently, as if it were true.
  • Agentic AIAgentic AI is an approach in which AI systems do more than generate answers: they set sub-goals, plan, use tools and carry out multi-step work with limited human intervention.
  • MCP (Model Context Protocol)MCP (Model Context Protocol) is an open protocol, introduced by Anthropic in November 2024, that gives AI applications a standard way to connect to tools, data sources and business systems.

Frequently asked questions

Does a small company need AI governance?

Yes, at a smaller scale. A short usage policy, a list of approved tools, the types of data that must not be sent to models and one accountable person are a sufficient start for most SMEs.

Which frameworks are used for AI governance?

ISO/IEC 42001 for an AI management system and the NIST AI Risk Management Framework for risk management are common references. GDPR and the EU AI Act apply in the EU; KVKK applies to personal data processed in Türkiye.

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