AI is moving fast. Really fast. According to IBM, 42% of enterprise-scale businesses have actively deployed AI into their operations, and another 40% are exploring it (IBM, 2024). But while product teams are running pilots and procurement’s signing off shiny new tools, something important is getting lost in the noise: robust, joined-up governance. And guess who’s best placed to fix that? You are. Because legal isn’t just about compliance anymore - it’s about shaping the future of how the business works. And with AI, that future’s already here.

Why AI governance isn’t just an IT problem

AI isn’t a single technology — it’s a fast-evolving ecosystem of tools that can automate, predict, generate and decide. And while that opens the door to serious competitive advantage, it also invites a new kind of risk. Think bias in hiring algorithms. Inexplicable credit decisions. Security vulnerabilities. Or just teams quietly using ChatGPT to handle sensitive customer data. One of the biggest risks companies face is “AI being used in ways that senior leadership doesn’t even know about” (Freshfields, 2024). Shadow AI use is rising - and without clear governance, it’s not just innovation that’s at stake. It’s your reputation. Your regulatory exposure. Even your contractual liability.

In-house legal teams: uniquely placed to lead

You already sit at the intersection of commercial strategy, operational reality, and legal risk. That makes you the natural leader when it comes to AI governance. So where do you start?

What good AI governance looks like - and how lawyers can help

Let’s break it down:

• Create practical policies. Forget 30-page PDFs no one reads. You need lightweight, usable guardrails that help teams spot and escalate risks early. Translate legal concepts into day-to-day principles that developers, marketers, and product owners can actually use.
• Embed ethics and transparency. One of the core tenets of good governance is explainability - especially in high-risk use cases like recruitment or credit scoring. The EU AI Act will require transparency and human oversight for many systems. Lawyers can ensure these obligations are baked into procurement and design workflows from the start.
• Get cross-functional buy-in. Governance can’t live in legal alone. It needs tech, HR, compliance, procurement, and exec sponsorship. Legal can lead, but others need to own it too. A great place to start? A cross-functional AI governance working group, ideally chaired by legal or risk.
• Know your AI inventory. You can’t govern what you don’t know. Build a register of AI systems used internally or through vendors. Include what they do, who owns them, and what risks they present.
• Stay on top of the regs. The legal landscape’s evolving quickly - from the EU AI Act to the UK’s sector-based approach. In-house teams are ideally positioned to spot overlaps with existing regimes like GDPR, and help the business navigate international rollout plans.

Stats that should raise your eyebrows

Two-thirds of companies using AI don’t yet have a formal governance framework in place (Freshfields, 2024). 67% of in-house lawyers believe they’ll be expected to play a leading role in AI strategy - but fewer than half feel prepared to do so (Thomson Reuters, 2024). Translation? There’s a huge opportunity here for legal to step up and own the space.

It’s not just about risk – it’s about relevance

Yes, governance is about managing risk. But it’s also about enabling growth. Done well, it creates clarity, speeds up decision-making, and helps the business innovate with confidence. Legal’s role isn’t to slow things down - it’s to make smart innovation possible. As IBM notes, companies with strong AI governance are more likely to realise value from AI projects, avoid compliance missteps, and earn stakeholder trust.

TL;DR? AI governance is your moment

Legal doesn’t need to be an AI expert overnight. But you do need to be the voice of strategy, scrutiny and structure as your business dives into new tech. Your job isn’t just to keep the business out of trouble - it’s to help it move fast, responsibly. And with AI, that’s never been more important.

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