AICD Director's Guide to AI Governance

This is essential reading for any company director or board member, and frankly it should be on the agenda of every board in Australia. The Australian Institute of Company Directors has done something important here: they've translated AI governance from technical jargon into the language of director duties and corporate governance. If you're a director, this tells you what you need to know and what questions you should be asking management.

The guide breaks down AI governance into eight elements: oversight and accountability, strategy and purpose, risk management, AI system lifecycle management, people and culture, third-party relationships, transparency and disclosure and continuous improvement. It also addresses how AI fits into existing director duties around due care and diligence, acting in good faith in the company's best interests and avoiding conflicts of interest. The practical checklists for different organisation sizes are particularly useful.

For you, this matters because boards are increasingly being asked to oversee AI initiatives, and directors have legal duties they need to discharge properly. If you're management presenting AI proposals to your board, frame them using this guide's elements—it's how directors are being taught to think about AI. If you're a director, use this to structure your AI oversight and ensure you're meeting your duties. The guide makes it clear: ignorance isn't an excuse. Directors can't just delegate AI to IT and hope for the best. You need active, informed oversight. And if you're wondering whether AI governance is a board-level issue—the AICD has answered that question definitively. It is.