
Local AI Models: A Governance Opportunity, Not a Governance Shortcut
Local AI models may allow organisations to use generative AI with sensitive information that would be unsuitable for consumer tools and difficult to approve for some cloud-based services. For boards, executives and company secretaries, that could be a significant opportunity. But local AI is not a governance shortcut. It still requires clear rules for data classification, privacy, records retention, legal holds, model provenance, cyber security, human verification and board reporting. The question is no longer simply whether an organisation should use AI. It is which AI should be used, for which data, and under which controls.


