Search for topics or resources
Enter your search below and hit enter or click the search icon.
July 31st, 2025
2 min read
AI governance and compliance are vital for businesses aiming to harness AI's potential responsibly while mitigating legal and ethical risks. In this episode of "Not Your Grandpa's JD Edwards," Trina Huntsman from ERP Suites explains the distinctions and overlaps between AI governance and compliance, emphasizing their importance and providing practical implementation strategies. Learn how proactive governance and thorough compliance can save your business from costly repercussions.
Introduction
Understanding AI Governance
Clarifying AI Compliance
Governance vs. Compliance: Key Differences and Similarities
Implementing AI Governance and Compliance
Critical Areas for Initial Compliance Focus
Importance of Training and Human Oversight
Real-World Success Examples
ERP Suites' Approach to Governance and Compliance
Common AI Compliance Mistakes and Prevention
Conclusion and Call to Action
Effective AI governance and compliance ensure businesses integrate AI safely and ethically. Trina Huntsman, an audit and compliance analyst at ERP Suites, provides insights on managing AI risks, regulatory expectations, and maintaining business trustworthiness.
AI governance involves establishing strategic frameworks, policies, and procedures to use AI responsibly and ethically. It includes risk management, accountability, regulatory compliance, transparency, and lifecycle management, helping businesses use AI effectively while minimizing risks.
AI compliance ensures AI systems adhere to laws, regulations, industry standards, and internal ethical policies. It addresses privacy, bias prevention, transparency, auditability, and risk management, helping companies avoid legal penalties and maintain trust.
Governance is internally driven, strategic, and defines responsible AI use.
Compliance is externally driven by laws and regulations, ensuring AI follows specific legal rules.
Both manage AI-related risks, rely on policies, enforce accountability, and aim for transparency.
Trina uses an analogy comparing governance to a navigation system and compliance to a speedometer and legal checklist.
A phased, structured approach aligned with a company’s unique risk profile and regulatory environment is crucial. Begin by addressing high-impact areas with clearly defined rules and processes.
Initially address:
Data privacy and protection
Bias and fairness
Transparency and explainability
Regulatory alignment
Human oversight and accountability
Security and model integrity
Documentation and auditability
Training ensures employees understand AI governance and compliance requirements, preventing unintended information leaks. Human oversight ("human-in-the-loop") is essential for catching automated errors, maintaining accountability, and providing continuous oversight.
Companies like CoPilot, Gemini, and ChatGPT successfully implemented comprehensive governance and compliance frameworks, setting industry standards for responsible AI use.
ERP Suites proactively manages AI governance and compliance by:
Collaborating closely with vendors
Ensuring AI systems don’t feed sensitive data into external models
Maintaining strict data privacy policies
Conducting regular training for employees
Other companies can learn from ERP Suites’ proactive stance and rigorous policy enforcement.
Common mistakes include:
Treating compliance as an afterthought
Ignoring data privacy laws
Overlooking biases
Lacking defined accountability
Poor documentation and monitoring
Avoid these by prioritizing proactive planning, defined accountability, regular training, and ongoing compliance monitoring.
Proactive AI governance and robust compliance frameworks are essential for mitigating risks and ensuring responsible AI use. ERP Suites provides tailored solutions to enhance your company's AI governance and compliance practices.
Contact ERP Suites today to fortify your business against potential AI-related risks and confidently innovate for the future.
If you found this episode valuable, subscribe, like, review, and share it with colleagues committed to responsible innovation.