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Unpacking AI governance to shape digital transformation

As AI reshapes the modern workplace, business leaders and decision-makers are eager to unlock the full potential of this new technology safely and effectively. Developing a working knowledge of AI governance—a responsibility framework—and how the technology works can help you identify its practical applications and prepare your organization for AI-powered capabilities.

At Microsoft, we understand the promises and challenges of AI, as we’ve been developing, deploying, and evaluating AI capabilities for years. Building a framework for responsible and secure AI is a top priority so that we can help others harness AI within a safeguarded system.

For businesses wondering where to begin their AI journeys, we recommend evaluating real-life success stories, which offer practical insights into how AI is transforming work now and for the future. Developing a deeper understanding of the technology and how early adopters are using it within a responsibility framework informs better decision-making as business leaders consider how AI can drive growth and innovation.

Beginning the transformation with responsible AI

When incorporating any new technology into the workplace, new legal and regulatory concerns might arise. Not that long ago, businesses were transitioning to the digital age, suddenly needing a company website and managing the opportunities and challenges of modern marketing mediums. As business leaders, we understand the importance of adapting to change as well as taking innovative action to stay ahead of the curve. AI provides another opportunity to spur growth in your organization, and it’s not as difficult to integrate as you might think.

Having an AI governance framework can help businesses deploy AI in a thoughtful and compliant manner. Throughout our own journey, Microsoft has developed responsible AI practices because we’re committed to using AI in ways that are safe, fair, transparent, and accountable. Our recommendations are grounded in policy requirements that our own engineering teams use. The standards generally follow a four-step pattern, asking teams to identify, measure, and mitigate potential harms and plan how to operate the AI system. Business leaders can lean on this proven framework to develop their own organizational governance.

Preparing guidelines and rules that will standardize AI requirements throughout the business can reassure senior decision-makers that their company can use AI safely and securely. Businesses can also encourage employee training on AI best practices, and leaders should understand how AI-powered tools work within their organizations. With a strong foundation based on these actions, you can embrace all that AI has to offer.

Evaluating AI use cases to identify next steps

Once a business leader understands the principles behind AI governance, the next step is considering how to best use the technology in their organization. Evaluating real-life use cases is a powerful way to learn how the technology works and explore its practical benefits.

For example, a customer service chatbot for initial engagement with customers might be the right place to begin. Or maybe your starting point is using AI to automate manual internal tasks so that employees have more time to focus on more meaningful work. Copilot for Microsoft 365, a generative AI assistant, works across apps to find information, generate meeting summaries, and help employees draft proposals and emails with the ease of a prompt.

For an organization with vast amounts of data, building a custom-use application within an AI platform might provide the greatest impact. CarMax created technologies that use machine learning to provide the best images, reviews, and details for each car and share targeted content based on customer searches.

No matter the size or goals of your organization, the steps you can take for transformation are simple. First, identify how you want to use AI, whether with a custom application or a commercially available product, and in parallel, develop your organization’s responsible AI framework around that specific use case.

Deploying AI and inspiring workplace innovation

With an AI plan in place, your organization is ready to begin the practical steps of using AI. Businesses should consider potential risk mitigations for each use case they plan to deploy. One example of this is using meta prompts to be certain that no copyrighted material is returned in generative AI-powered searches.

Businesses that inspire a culture of AI exploration are most likely to reap the full benefits of their investment, with employees finding new ways to use the technology to maximize efficiency and productivity. Offering education and training on AI-powered tools and best practices teaches employees the basics of AI governance and prepares them for secure innovation. Microsoft provides webinars and training materials on AI tools to engage employees and demonstrate the power of this technology.

As the use of AI evolves within an organization, the governance framework helps leaders and decision-makers track how AI is being used. They can then evaluate and update the framework as needed, like adding in process updates or creating new areas of responsibility.

Unlocking AI to drive growth and innovation

Understanding AI governance and how the technology works is helping business leaders and decision-makers worldwide unlock the potential of AI. These practical experiences can help other businesses evaluate their own unique requirements and use AI to move their organizations forward.

For all aspects of your own AI journey, Microsoft is here with its hands-on expertise in developing and deploying the AI-powered tools that are transforming the workplace. The following resources can help you learn more: