Governance matters because employees adopt AI tools faster than policies are written. Without it, customer data can end up in unapproved tools, and no one can say who signed off on an AI-assisted decision. Good governance is practical: an inventory of AI uses, data rules for each, named owners and a review step before anything new goes live.
For example, a policy might allow AI to draft supplier emails but require a person to approve any change to payment terms. The misconception is that governance means a long document. A short policy that people actually follow is worth more than a thorough one that sits unread.