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John Wei and Animesh Kumar: Why AI Strategy Fails Without Governance, And What Legal and Compliance Teams Can Do About It

Extract from Wei & Kumar’s article, “Why AI Strategy Fails Without Governance, And What Legal and Compliance Teams Can Do About It.”

The potential risks associated with using AI are even more top of mind for our clients: leaders of corporate legal and compliance teams who need to balance transformation efforts with risk management.

The enterprise AI conversation has officially shifted from “What can it tell us?” to “What can it do for us?” We have moved beyond the phase of standalone chatbots into the era of agentic AI—systems capable of planning, using tools, and executing complex workflows with minimal supervision.

For CIOs and technology leaders, this transition unsheathes a double-edged sword. While agentic AI promises to unlock unprecedented efficiencies, it also introduces the risk of excessive agency. When an AI agent receives the power to act on its own, the distance between a minor technical glitch and a major enterprise liability shrinks. The potential risks associated with using AI are even more top of mind for our clients: leaders of corporate legal and compliance teams who need to balance transformation efforts with risk management.

AI maturity does not come from the model you use; it develops from the architecture of your governance. To harness the speed of autonomy, organizations must move away from a fragmented plugin mentality and toward a unified platform approach that treats AI security with the same rigor as any other mission-critical software. And there are practical steps you can take to achieve this goal.

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