AI governance, once the purview of the legal department, is now knocking on the CEO’s door. But many C-Suite executives are still treating it as something to delay addressing until after AI regulations are set in stone. This can be a shortsighted strategy. Consider that 46% of organizations say AI governance and compliance issues are the reason why their AI underperforms, according to the GrantThornton, 2026 AI Impact Survey Report (PDF). These figures lend credence to why leadership should not wait for AI regulations to settle but should apply governance proactively.
AI governance demands urgent leadership oversight because of three converging forces:
Internal AI-safe use policies are falling behind AI adoption. Tools are being used in day-to-day decisions faster than most organizations can define rules for how they should be used.
The regulatory environment is fragmented. Some U.S. states are experimenting with their own frameworks; federal action is slow, and major regions such as Europe are taking different approaches.
The threat landscape today includes geopolitical tensions, which means state-sponsored actors are leveraging reputational threats such as deepfakes and AI-generated disinformation at scale.
