Paul Barnhurst explains why companies stuck on AI adoption lack proper governance. Without it, "shadow use" spreads: unauthorized AI deployments that drain budgets and create security risks. He argues CFOs need to measure AI ROI and enforce policies, with internal champions driving adoption at scale.
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The companies that are falling behind don't have governance. And AI governance is not IT governance. Governance is not sticking your head in the sand and say, don't use it, because then you're going to have shadow use. It's going to come from the bottom up, and it's just a matter of time till somebody does something that costs the company a lot of money. So governance is a huge area where people are falling behind. And we've had several guests on that show specifically talking about governance and the things you need to be thinking about in measuring ROI and what's the role of the CFO in this whole governance thing. So I think if you don't have policies at your company, ask why not? Because the reality is it's a recipe for bad things in the long run. Just like if you don't have good IT security, who's ever dealt with a hack, a breach, any of that stuff? Not fun, right? It's a huge cost and a huge risk. And AI is no different.
Yeah, I agree. I mean, that's certainly what we're seeing from the companies that are maybe a few steps ahead. They have an internal AI governance policy and you'll see the word champions pop up all over the place. They'll be called other things as well.