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Why AI agent governance must start with enterprise data

What happens when AI meets poor data governance and the potential repercussions for organizations.

Why AI agent governance must start with enterprise data

AI agent governance should begin with enterprise data, not the agents themselves. Model security and performance are important, but rely on high-quality data for decision-making quality. Organizations must ensure governed inputs, appropriate access, and a reliable record of the agent's output before deploying agents in production.

Weak data control can lead to agents making poorly informed decisions, especially when given outdated or improperly classified information. AI adoption is outpacing governance, with many organizations rushing to put agents in production without addressing underlying data issues. The majority of AI projects show no return on investment due to this oversight.

AI agent governance extends beyond the data the agent accesses; it also includes the data the agent produces, such as decisions and created documents. This traceability and defensibility are crucial as AI influences significant enterprise decisions. The data governance issue is not new, but its urgency has increased due to agentic AI's ability to act on weaknesses at scale.

Before granting an agent access, IT must identify sensitive information, apply consistent classification and retention policies, and determine data reliability. Legacy data, though valuable, often contains duplicates, obsolete information, and legal constraints that require careful handling. Access should follow the principle of least privilege, granting only the data necessary for the agent's tasks.

Context is vital; agents must distinguish between current and outdated sources. Governance must also cover the data the agent generates, enabling a clear reconstruction of decisions and their origins. Accountability for AI actions should not solely rest on the technology team; business owners must take responsibility. Data readiness is a prerequisite, not a post-pilot add-on, as trust in information, access control, and explainability are essential before granting agents autonomy.

Written by urgent.news from TechRadar's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

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