Articles Posted in AI Governance

Imagine you’re an associate at a consulting firm. You’re surprised to see a new “AI Assist” button appear in your email application one morning. Without any training or guidance from your firm’s IT department, you decide to try it out, asking the AI to draft a response to a client’s inquiry about tax implications for a proposed merger. The AI confidently generates a response that looks professional and well-written, which you quickly review and send. Three days later, your managing partner calls you into their office—the AI cited outdated tax regulations and recommended a structure that would create significant liability for the client. The incident triggers an urgent internal review, revealing that dozens of employees have been using the undisclosed AI feature for weeks, potentially exposing the firm to professional liability and damaging client relationships.

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