Business Guide

AI Governance and Procurement for Businesses

Organizations can ensure responsible AI usage by implementing strict procurement policies, monitoring vendor security certifications (SOC 2), and establishing cost-control mechanisms like departmental chargebacks. Strategic AI governance reduces financial risk, ensures regulatory compliance, and fosters trust with stakeholders through transparent, ethical AI integration.

72%

of IT leaders find AI spending unmanageable

+30%

GenAI impact on enterprise cloud costs (2024)

33%

of companies exceed cloud budgets by 40%+

Cost Control Strategies

Keep AI spending predictable and under control.

Set Usage Budgets

Establish monthly/quarterly budgets per department or project. Use cloud provider alerts at 50%, 75%, and 90% thresholds.

Implement Chargebacks

Allocate AI costs to the teams that use them. This creates accountability and encourages efficiency.

Regular Cost Reviews

Monthly reviews of AI spending vs. value delivered. Identify and eliminate underutilized integrations.

Negotiate Volume Discounts

For high-volume usage, negotiate committed use discounts with providers. Consider reserved capacity.

Procurement Best Practices

Evaluate AI vendors with a responsibility lens.

Vendor Assessment Checklist

Data handling policies • Model transparency • Security certifications • Incident response • Sustainability practices

Contract Considerations

Include data ownership clauses, audit rights, SLAs for availability, and exit provisions with data portability.

Proof of Concept Requirements

Require pilots with real data volumes to assess actual costs before committing to annual contracts.

Multi-Vendor Strategy

Avoid lock-in by maintaining compatibility with multiple providers. Abstract AI layers in your architecture.

Risk Management

Identify and mitigate AI-related risks.

AI Inventory

Maintain a registry of all AI tools and integrations. Include risk ratings and responsible owners.

Data Classification

Define what data can be sent to AI systems. Establish clear policies for PII, financial, and proprietary data.

Output Validation

For high-stakes decisions, require human validation of AI outputs before action.

Incident Playbooks

Prepare response plans for AI failures, hallucinations, bias incidents, and data breaches.

AI Policy Template

Customize this template for your organization.

# AI Usage Policy Template

## Scope
This policy applies to all AI tools and services used within [Company Name].

## Approved Use Cases
- [List approved use cases]
- Customer support assistance
- Document summarization
- Code review assistance

## Prohibited Uses
- Processing sensitive PII without explicit approval
- Autonomous decision-making for [critical areas]
- Sharing proprietary data with third-party AI

## Data Handling
- No customer PII in prompts without anonymization
- Retain AI interaction logs for [X] days
- Annual audit of data practices

## Cost Controls
- Department budget limits: $[X]/month
- Approval required for usage exceeding $[X]
- Quarterly cost review meetings

## Vendor Requirements
- SOC 2 Type II certification
- GDPR compliance (if applicable)
- Data processing agreement on file

## Review Schedule
This policy will be reviewed [quarterly/annually].

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AI Governance and Procurement for Businesses

# AI Usage Policy Template ## Scope This policy applies to all AI tools and services used within [Company Name]. ## Approved Use Cases - [List approved use cases] - Customer support assistance - Document summarization - Code review assistance ## Prohibited Uses - Processing sensitive PII without explicit approval - Autonomous decision-making for [critical areas] - Sharing proprietary data with third-party AI ## Data Handling - No customer PII in prompts without anonymization - Retain AI interaction logs for [X] days - Annual audit of data practices ## Cost Controls - Department budget limits: $[X]/month - Approval required for usage exceeding $[X] - Quarterly cost review meetings ## Vendor Requirements - SOC 2 Type II certification - GDPR compliance (if applicable) - Data processing agreement on file ## Review Schedule This policy will be reviewed [quarterly/annually].