What is AI governance and why does an Australian business need it?
AI governance is the set of policies, controls, and review processes that determine how a business uses AI safely and lawfully. In Australia, businesses using AI must comply with the Privacy Act 1988, the Australian Privacy Principles, and emerging guidance from the Office of the Australian Information Commissioner. AI governance covers data residency, what employees may upload to public AI tools, vendor due diligence, model output review, bias monitoring, audit trails, and incident response. FlowWorks helps clients write a practical AI use policy, classify which workflows are low, medium, or high risk, build review processes for high-risk outputs, and document compliance for clients, insurers, or auditors. Without governance, an organisation risks data leakage, regulatory exposure, and reputational damage.