IT Governance Framework for Generative AI Usage: Daily Workflows vs GenAI Projects
Enterprises need an IT governance framework for 2 streams of Generative AI usage: one for daily use in workflows by users, and the other for GenAI projects.
As enterprises react to the risks that were uncovered with the early adoption of GenAI and restrict its use, and in some cases ban its use outright, we need to figure out an approach to utilize this largely unvetted technology in a safe and responsible manner. A way to reopen its use in a secure and safe manner is to separate the two streams of use of GenAI, and to implement a tailored approach to each, with regards to IT governance. Organizations need to establish strong IT governance frameworks to effectively manage GenAI usage. Here, we present a comprehensive governance framework for GenAI, focusing on two primary streams: daily workflow usage and GenAI-specific projects.
Stream 1: GenAI Usage in Daily Workflows
Identification and Assessment
The first step in incorporating GenAI into daily workflows is to identify the areas where GenAI can be beneficial. This process involves assessing potential risks, impacts, and benefits. It is crucial to consider how GenAI can improve efficiency, reduce costs, or provide other advantages. The assessment stage also includes identifying any potential risks or challenges that might arise from integrating GenAI into existing workflows.
Implementation
Once the areas of GenAI application have been identified and assessed, the next step is implementation. This stage involves setting up GenAI solutions, training users on how to interact with the AI, and consistently monitoring its performance. It's essential to ensure that the transition is smooth and the users are comfortable with the new technology.
Governance and Control
The governance and control stage is about establishing mechanisms to oversee the use of GenAI. This includes defining the roles and responsibilities of each user, setting up policies and procedures for GenAI usage, and implementing controls to ensure that GenAI is used appropriately and effectively. Governance is an ongoing process and requires regular updates and reviews.
Review and Improvement
Regular review of the use of GenAI in the workflow is crucial for continuous improvement. This involves gathering feedback from users, monitoring GenAI's performance, and making necessary adjustments. Regular reviews help ensure that GenAI continues to add value to the organization.
Stream 2: GenAI Projects
Project Initiation
The initiation stage involves recognizing the need for a GenAI project and defining its objectives. This includes understanding the business needs, identifying the benefits of using GenAI, and defining the project scope.
Project Planning
Project planning involves defining the project tasks, resources, timeline, and budget. A well-planned project ensures that all aspects are considered and accounted for before the project execution begins. A project charter is the main deliverable that initiates this GenAI project.
Project Execution
The execution stage involves managing the project tasks, resources, and risks, ensuring that the project is delivered on time and within budget. This stage requires strong project management skills to keep everything on track.
Project Control
Project control involves monitoring the project's progress, managing changes, and ensuring that the project is on track to meet its objectives. This stage requires regular status updates and risk assessments.
Project Closure
Project closure involves reviewing the project outcomes, documenting the lessons learned, and transitioning the project deliverables to the business. This stage is essential for understanding the project's success (or failures) and preparing for future projects.
Governance and Control
Similar to the daily workflow, governance mechanisms are necessary to control GenAI projects. This includes defining roles and responsibilities, setting up policies and procedures, and implementing controls to ensure that the projects are managed effectively.
If your organization is already preparing for the risks of GenAI and how to mitigate these risks, your organization’s GenAI IT governance may already include a GenAI reference architecture and best practices for GenAI development. If your organization doesn’t have these foundational, enterprise artifact, do not fret- I will write about how to design and implement these in a future article.
Summary
In conclusion, the incorporation of GenAI into daily workflows and specific projects requires a robust IT governance framework. Such framework ensures that GenAI aligns with business objectives, delivers value, manages risks, and uses resources responsibly. As the use of GenAI continues to grow, establishing and maintaining strong governance will be crucial for organizations to reap the benefits of this transformative technology.
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