Travers Smith's Alternative Insights: Governing the huge potential of AI

KEY INSIGHTSGovernance creates value: Effective AI governance is not a compliance exercise – for private capital firms, it is a discipline central to value creation, which can be applied as rigorously to their own operations as to their portfolio companies.Humans must stay in control: An effective AI governance framework places human oversight and accountability at its core, with named individuals responsible, clear rules on data and tools, and meaningful review of every AI-generated output.Nimbleness is now essential: As technology, regulation and use cases evolve rapidly, firms must continuously adapt their AI policies – and embed a culture that empowers, even requires, staff to use AI actively while remaining alert to its risks.Links:Corporate governance | OECDResponsible-AI-Quick-Guide-for-Asset-Owners.pdfFCA, Bank of England and Treasury joint statement on frontier AI models and cyber resilience | FCAAnthropic Partners with Blackstone, Hellman & Friedman, and Goldman Sachs to Launch Enterprise AI Services Firm - BlackstoneThe EU AI Act – the current state of play | Travers Smith