AI governance framework and principles for boards

Global professional services company KPMG International and the INSEAD Corporate Governance Centre have published a set of artificial intelligence (AI) governance principles for boards. The framework is designed to support executives in addressing a growing governance gap, as technology adoption rapidly outpaces organisational maturity and outputs present reliability and ethical risks.

The framework outlines five core principles to guide board-level oversight. The framework requires that boards must:

• Ensure AI initiatives align with long-term strategy 
• Exercise oversight over what AI investments and choices are selected
• Manage workforce transitions 
• Ensure AI models reflect ethical boundaries
• Continually update governance structures to keep pace with technology

By implementing these principles, boards can effectively govern at two speeds, balancing short-term risk mitigation with long-term business transformation and workforce evolution. The framework emphasises that early investment in governance, transparency, and accountability establishes the essential foundation of trust required to scale artificial intelligence responsibly and sustainably across markets.

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