As professional services firms work to integrate AI into their offerings and operations, one question looms large: Do you have the right governance and compliance structures in place?
Law firms, accounting firms, and consulting firms are embracing AI to improve efficiency, deliver insight, and stay competitive. But without intentional governance, compliance, and policy frameworks, these innovations can introduce real risk to clients, reputations, and the firm itself.
In working with professional services clients, here are nine critical structures I have found that every professional services firm should consider. It goes without saying that this list is not exhaustive, and every firm should seek independent counsel, but here are some things to think about:
AI Governance Committee – Cross-functional leadership providing oversight, setting ethical and strategic direction.
Designated AI Risk & Compliance Officer – A central point of accountability for policies, assessments, and investigations.
AI Inventory & Use Registry – A real-time record of AI systems in use, including purpose, owner, and risk level.
Policy & Procedures Framework – Codified guidelines for internal and client-facing AI use, aligned with legal and ethical norms.
Model Validation & Audit Function – Ensures AI models are accurate, explainable, and functioning as intended.
Training & Awareness Programs – Educates employees on responsible AI use, risk scenarios, and red flags.
Incident Response Plan – Prepares the firm to respond rapidly to model errors, hallucinations, or data mishandling.
Vendor Oversight – Ensures external AI tools meet the firm’s standards for compliance, confidentiality, and IP protection.
Client Disclosure & Consent Mechanisms – Builds transparency and trust by informing clients when and how AI is used in their matters.
AI isn’t just a tech issue - it’s a governance and compliance imperative.
Again, your situation may be different and may have additional considerations. Also, each of these points have many “sub-points” that should be on your radar.
What is your firm doing to ensure responsible and compliant use of AI?
Now is the time to think about it.
