Key Takeaway
An AI governance policy provides the organizational mandate that makes other AI policies enforceable by establishing clear authority and accountability.
When to Use This Template
Use this template to establish the foundational governance structure for AI within your organization. This should be the first AI policy document you create, as all other AI policies (acceptable use, ethics, data handling, vendor management) reference and build upon it. It is appropriate for organizations moving from ad-hoc AI experimentation to structured AI operations.
Policy Sections
Define who this policy applies to (all employees, contractors, vendors who develop or deploy AI systems), what constitutes an 'AI system' for governance purposes, and how this policy relates to existing information security, data protection, and risk management policies. Be specific about the definition of AI to avoid confusion about which projects fall under governance requirements.
Define three governance bodies: AI Steering Committee (executive-level, sets strategy and approves major investments, meets quarterly), AI Ethics Board (cross-functional, reviews high-risk AI applications, meets monthly or on-demand), and Technical Review Committee (engineering leadership, reviews architecture and security, meets bi-weekly). For each body, document the charter, membership, meeting cadence, and decision authority.
Define risk tiers for AI systems. Tier 1 (Low Risk): internal tools, no customer-facing decisions, approved by engineering leadership. Tier 2 (Medium Risk): customer-facing features with human oversight, approved by Technical Review Committee. Tier 3 (High Risk): autonomous decisions affecting customers, financial outcomes, or safety, approved by AI Steering Committee with Ethics Board review. Document the approval workflow for each tier, including required documentation, review timeline, and escalation path.
Define reporting requirements: quarterly portfolio reviews for the Steering Committee, monthly operational reports for Technical Review, and incident reports within 24 hours to the appropriate governance body. Establish an annual compliance audit that verifies all AI systems are properly classified, approved, and monitored. Document consequences for non-compliance: corrective action plan for first violations, system suspension for repeated violations.
Customization Guidance
Adjust the risk classification tiers and governance body structure to match your organization's size and risk appetite. Smaller organizations may combine the Ethics Board and Technical Review into a single body. Larger organizations may need additional governance layers for business unit-level review. The key principle is that higher-risk AI systems require higher-authority approval, and every AI system has a clear owner who is accountable for its behavior.
Keep the governance process lightweight for low-risk AI applications. Over-governing internal tools and experiments creates friction that discourages innovation. Focus governance effort on customer-facing and decision-making AI systems where the consequences of failure are significant.
Version History
1.0.0 · 2026-03-01
- • Initial AI governance policy template