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Glossary · Australian Compliance

AI Governance

The policies, accountability structures and controls that guide how an organisation develops, deploys and monitors AI systems responsibly.

In detail

AI governance is the internal framework of policies, roles, risk assessments, controls and review processes that a business applies to AI. It covers who can approve AI tools, what data those tools may access, how outputs are validated, how incidents are escalated, and how the business meets its obligations under privacy law, sector regulation and (from 2026) the Privacy Act ADM reforms. A mature AI governance framework includes an AI tool register, a data classification scheme, acceptable-use policies, staff training requirements, and a supplier assessment process for third-party AI vendors.

Why it matters for Australian business

Australian boards and executives are increasingly being asked to demonstrate that AI is being used responsibly, particularly in regulated sectors like finance, health and not-for-profit. The absence of AI governance is also a growing audit finding. We build practical governance frameworks sized for Australian SMBs: not bureaucracy for its own sake, but documented decisions that survive staff turnover and satisfy a due-diligence question from a client or regulator.

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