AI Governance Washing & Silent AI: Board Oversight Risks

This article highlights the critical risks of "Silent AI" and "Governance Washing" for internal audit and assurance professionals. Silent AI refers to AI-driven risks that are embedded in ordinary operational claims (e.g., copyright, product liability) and only surface as AI risks during a crisis, often leading to board-level liability. Governance washing describes the misrepresentation of AI governance structures as mature and effective when they lack real authority or have not been stress-tested, ultimately exposing boards to significant legal and reputational damage. Internal auditors must assess the true effectiveness of AI governance frameworks, moving beyond mere documentation to evaluate actual impact and decision-making authority.