Governance First: Why AI Without Guardrails Puts Organisations at Risk

By Karl George MBE, The Governor, Founder of Governance AI.

We’ve heard the phrases: AI-first, digital-first, agent-first. However, in my view, the first principle that should underpin any AI deployment in an organisation, before the technology and hype, is governance first.

Yes, we are in the midst of what I call the Reset: The Intelligence Revolution. AI agents are no longer just supporting tools; they’re becoming autonomous actors, making decisions, influencing strategy, and even drafting emails, policies, and customer responses with minimal oversight. However, I want to offer a word of caution: many organisations are deploying these tools without the necessary structure, competency, or culture to govern them effectively.

This is not a call to halt innovation, quite the opposite. I’m calling for a deliberate and structured approach to AI governance, so we avoid “wilful blindness” and press forward with our eyes wide open.

The Illusion of Progress: Deploy First, Govern Later?

The race to adopt AI is tempting. Boards focus on efficiency, productivity, and innovation. But what they often don’t know until it’s too late are the governance blind spots:

• AI hallucinations are being presented as fact in board papers
• Chain-of-thought logic producing unintended, discriminatory outcomes
• Sensitive decisions are delegated to an AI system with no audit trail
• Employees using generative tools that are effectively shadow governance

We don’t have to look far for examples. One company had its AI assistant summarise internal strategy documents and share them across teams, only to discover that those files included confidential M&A material. In another instance, an LLM-generated policy contradicted their legal obligations, yet it was published without review.

It’s not enough to focus on what AI can do. The real question is: do you have the structures, behaviours, and skills in place to ensure AI supports your strategy without compromising ethics, compliance, or trust?

My Approach: Governance First, Always

At The Governance Forum, we operate on three clear pillars to get AI governance right:

1. Structure the Board

If AI is strategic (and it is), then the board must be capable of providing strategic oversight. This means:

• Clear terms of reference for AI oversight
• Training on AI risks, ethics, and opportunities
• Defined accountability across committees and leadership roles

It’s what I call getting your compliance drivers in place structure, resource, and role clarity.

2. Train the Leadership and Set the Culture

AI governance doesn’t live in the IT department. It’s a leadership issue. That’s why we train boards and C-suites in:

• How to ask the right questions of AI
• How to interpret outputs with human judgment
• How to model transparent, ethical behaviours

Without the exemplary leadership mindset, your governance framework becomes a paper exercise.

3. Implement with Purpose

Only then do we move to responsible implementation:

• AI policies and risk registers
• Bias monitoring, human-in-the-loop protocols
• Governance of procurement, vendor models, and open-source use

This is where we activate the performance drivers of transparency, impact, and behaviour. It’s not about slowing down innovation. It’s about ensuring it scales safely, strategically, and sustainably.

Why Governance First Keeps You Ahead

Just as cybersecurity taught us the cost of being reactive, AI will punish those who deploy without discipline. A governance-first approach is not a blocker; it’s a launchpad. With the proper guardrails, AI can become a force multiplier rather than a governance liability.

To all those building an “AI-first” organisation, I say: AI is not the driver it’s the vehicle. And if we want to arrive safely, ethically, and strategically, then governance is the steering wheel.

Let’s not race ahead blindfolded. Let’s lead with governance on purpose, with purpose.