AI and data governance delivers reward from risk

Data and AI governance has emerged as a critical roadblock for many enterprises, reducing their ability to address risk and seize the latest AI innovations. It has become clear that enterprises with good data governance are able to implement AI faster and take competitive advantage.

On the risk side, the rapid expansion of data-driven business operations create new vulnerabilities that require immediate attention. The exponential proliferation of data increases exposure to cyberattacks and the potential for reputational damage from misuse or breach. Enterprises must also navigate the recently amended Australian Privacy Act and global privacy standards which, if contravened, may result in substantial penalties and loss of trust.

One state government has recently imposed formal data governance compliance on all public entities and thousands of suppliers. The Western Australian Government’s new Privacy and Responsible Information Sharing Act 2024 (PRIS Act) mandates privacy obligations governing data use, disclosure, sharing and security, reflecting a growing commitment to safeguarding personal information and ethical data requirements on third party government suppliers.

On the competitiveness side, organisations increasingly recognise mature data management and analytics capabilities as essential for reducing costs, growing revenue, and achieving tangible ROI from technology investments. Yet technical immaturity hampers the ability of most to leverage data strategically. This further acts as a handbrake on AI adoption, stifling innovation and slowing productivity promised by off-the-shelf AI co-pilots.

In 2025, enterprises will address this inertia by implementing data and AI governance programs that set clear policies and operational protocols for data access, usage, storage, retention and deletion. Organisations will make new investments in specialised technologies to handle discovery, classification, and compliance monitoring of the data they are processing at massive scale across sprawling technology environments.

Expert resources with the genuine experience needed to lead such programs are rare. Dedicated Chief Data Officers (CDOs) who can envision and implement governance at both the policy and technology levels, whilst aligning to business goals and managing inevitable organisational change, will be highly sought-after.