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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.

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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 the business validates outputs, how it escalates incidents, and how it 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.

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