What is…
AI Governance
With the proliferation of AI tools in the enterprise environment, a new governance problem emerges: employees use AI tools productively, often without the IT or legal department having visibility into what data is being transferred where. This uncontrolled growth of AI usage is known as Shadow AI.
AI governance typically encompasses: an AI usage policy (which tools are permitted for which data?), an inventory of all deployed AI systems and their data flows, a risk classification under the EU AI Act, data protection impact assessments ( Art. 35) for high-risk AI systems, monitoring of AI outputs for quality and compliance, and clear accountability (AI officer, CISO).
The EU AI Act makes AI governance mandatory for many organizations: high-risk systems require complete documentation, logging and human oversight. The Act also requires registration of certain AI systems in an EU database.
On-premises AI significantly simplifies AI governance: data flows are transparent and controllable, there are no external providers whose data protection practices need to be audited, and complete logging of all queries is possible within the system itself.
GDPR
The GDPR (General Data Protection Regulation, EU 2016/679) is the European regulation for the protection of personal data — particularly relevant for IT infrastructure in Art. 5 (principles), Art. 17 (right to erasure), Art. 28 (processors) and Art. 32 (security of processing).