What is the primary purpose of an AI governance policy?

• A. To outline general marketing guidelines for AI products.
• B. To specify only data storage limits.
• C. To define pricing for AI services.
• D. To provide a guiding framework for responsible AI, accountability, and risk management.

Answer: (D)

An AI governance policy provides a guiding framework for responsible AI, accountability, and risk management. It sets the rules and expectations for how AI systems are designed, developed, deployed, and monitored within an organization. It defines who is responsible for various aspects of AI use, establishes decision rights and escalation paths, and specifies controls to protect privacy, security, fairness, and regulatory compliance. It also outlines processes for risk assessment, ongoing monitoring, audits, and remediation when issues arise, helping ensure AI decisions are explainable and auditable.

Marketing guidelines focus on promotion, not governance of AI use. Data storage limits pertain to data management, not the overarching framework for responsible and auditable AI. Pricing for AI services falls under commercial/financial policy, not the governance framework that governs risk, accountability, and ethical use.