Summary

Deploying Generative AI without robust governance frameworks poses significant ethical, reputational, and legal risks, including hallucinations, biased outputs, and privacy breaches. Effective management requires a combination of technical safeguards, clear acceptable-use policies, and cross-functional oversight to balance rapid innovation with corporate responsibility. Failing to prioritize these foundational requirements can lead to mounting costs from regulatory penalties, lost customer trust, and the dilution of brand identity.