Back to Services

AI Governance Framework

Manage AI risk without slowing innovation. Develop clear policies and operating models for responsible AI adoption tailored to CPG concerns.

TL;DR

  • What: Risk framework and policies for responsible AI—tailored to CPG concerns (trade secrets, retailer data, EU AI Act)
  • Impact: Enable innovation on low-risk use cases while protecting what matters; clear decision rights and approval workflows
  • Timeline: 6-12 weeks to build governance framework with stakeholder input

Enable Innovation, Manage Risk

Your board is asking about AI risk. The EU AI Act is now in force. Teams are experimenting with ChatGPT for everything from customer insights to supplier negotiations, and you don't have a handle on what's being shared or how decisions are being made.

You need governance—but not the kind that creates bureaucracy and kills innovation. I help you build frameworks that protect what matters (trade secrets, retailer data, consumer trust) while enabling teams to move fast on low-risk use cases.

What You'll Get

  • Assessment of current AI usage across your organization
  • Risk framework tailored to CPG (trade secrets, retailer data, consumer AI)
  • Clear policies for acceptable use and vendor evaluation
  • Operating model—who owns decisions and how they're made
  • Implementation roadmap prioritized by risk and impact

Framework Components

AI Usage Assessment

You can't govern what you don't see. We map current AI usage across your organization—often revealing more activity than leadership realizes.

Deliverables:

  • Inventory of AI tools and use cases across departments
  • Classification by risk level (high, medium, low)
  • Identification of shadow AI and ungoverned experiments
  • Assessment of vendor relationships and data sharing

Risk Framework for CPG

Generic AI risk frameworks don't address CPG-specific concerns. We tailor the framework to what actually matters in your industry.

Deliverables:

  • Trade secret and pricing data protection requirements
  • Retailer data obligations and contractual constraints
  • Consumer-facing AI considerations (labeling, transparency)
  • Regulatory compliance (EU AI Act, sector-specific rules)

Policies & Guidelines

Clear, actionable policies that tell teams what they can and can't do—not vague principles that leave everyone guessing.

Deliverables:

  • Acceptable use policy for generative AI tools
  • Data handling requirements by classification level
  • Vendor evaluation criteria and approval process
  • Model selection guidance (when to use external vs. internal)

Operating Model

Who makes decisions? Who reviews use cases? How do approvals work? A governance framework is useless without clarity on who does what.

Deliverables:

  • Roles and responsibilities (who owns AI governance)
  • Decision rights by risk level (low-risk auto-approved, high-risk requires review)
  • Review and approval workflows
  • Escalation paths for edge cases

Why AI Governance Matters for CPG

Regulatory Pressure

The EU AI Act is now in force, with steep penalties for non-compliance. Boards and audit committees are asking questions you need to be able to answer.

Competitive Risk

If pricing strategies, trade promotion tactics, or supplier negotiations leak through poorly governed AI use, the commercial damage could be massive.

Retailer Expectations

Your retail partners expect you to handle their data responsibly. Governance failures can damage critical relationships and violate contractual obligations.

Consumer Trust

Consumer-facing AI (chatbots, product recommendations, personalization) requires transparency and care. Missteps can damage brand reputation.

Enable, Don't Block

Good governance isn't about saying no to everything. It's about creating clear rails so teams can move fast on low-risk use cases without constant approvals.

Vendor Proliferation

Without governance, every department buys their own AI tools, creating integration nightmares, redundant spend, and security gaps.

How We Work Together

1

Discovery

Interviews with stakeholders to understand current AI use, appetite for risk, and organizational structure

2

Framework Design

Draft governance framework tailored to your risk tolerance and CPG-specific concerns

3

Socialization

Review with key stakeholders, incorporate feedback, ensure buy-in from those who need to live with it

4

Implementation

Roadmap for rollout, training materials, communication plan, and ongoing ownership model

Typical Engagement

6-12 Weeks
From discovery to implementation roadmap
Stakeholder-Led
Built with input from legal, IT, compliance, and business units
Practical
Framework teams will actually use, not shelf-ware policy docs

Ready to Build AI Governance That Enables, Not Blocks?

Let's discuss your current AI usage and how to manage risk without killing innovation.

Book a 30-Minute Call

Let's Talk About Your Commercial Data Challenges

Book a 30-minute call to discuss how AI can help your CPG team work smarter