How Enterprises Can Govern Conversational AI Risks Effectively

Conversational AI, powered by advancements in large language models (LLMs) and generative AI, is increasingly integrated into enterprise applications. While these technologies enable more natural interactions, they also introduce new risks—such as bias, security breaches, and reputational harm—that traditional governance models fail to address.

Key Challenges:

• Gartner predicts that by 2028, 25% of enterprises will face major disruptions due to inadequate AI governance.
• Many organizations lack clear accountability structures for AI behavior management.

Building a Cross-Functional Governance Team

To mitigate these risks, enterprises must establish a cross-functional team comprising business, IT, risk, and compliance experts. This team should:

• Define roles, responsibilities, and escalation paths for AI-related issues.
• Set regular review meetings to assess new use cases and update guardrails as risks evolve.
• Appoint a team lead to coordinate governance efforts.

Defining AI Guardrail Policies

Clear, accessible policies are critical to governing conversational AI behavior. Unlike traditional applications, conversational AI requires adaptive guardrails for:

• Security and privacy compliance.
• Ethical use and business policy adherence.
• Legal and regulatory alignment.

Gartner forecasts that by 2027, 80% of large enterprises will have reusable governance frameworks for AI agents.

Establishing Operational Accountability

An adaptive framework ensures each guardrail has an operational owner (e.g., end-users, administrators, or risk teams). Key steps include:

• Mapping policies to responsible parties.
• Defining escalation protocols for incidents.
• Ensuring stakeholders understand how to respond to AI-related issues.

"By implementing these practices, enterprises can align AI initiatives with business goals while managing regulatory and reputational risks," says Bern Elliot, Distinguished VP Analyst at Gartner.

Additional Notes:

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Disclaimer: Views expressed are the author’s alone and not necessarily endorsed by ETCIO.