What is the role of the enterprise's governing body in AI governance?

• A. Responsible for all organizational activities, including AI consequences, and ensuring alignment with risk appetite
• B. Focuses only on HR
• C. Manages day-to-day IT operations
• D. Approves budgets only

Answer: (A)

The main concept is that AI governance requires top-level oversight to steer risk, strategy, and accountability across the organization. The governing body is responsible for AI governance because AI initiatives touch many parts of the business and carry broad implications for ethics, privacy, safety, compliance, and reputation. Their role is to set the direction, approve the governance framework and policies, and ensure that AI activities align with the enterprise’s risk appetite and strategic objectives. They monitor performance and risk indicators, ensure there are clear accountability lines, and oversee independent risk assessment and oversight so that consequences of AI systems are understood and managed at the highest level. While they may approve budgets, their mandate is broader: guiding how AI is used and governed, not handling day-to-day IT operations or HR tasks, which are the responsibilities of management and specialized functions.