AI Governance and Compliance: Why They Are Becoming Essential for IT Companies

Artificial intelligence has rapidly become part of the everyday operations of modern IT companies. From software development and automation to HR processes, analytics, customer support, and enterprise productivity tools, AI systems are increasingly integrated into business activities across industries. However, while adoption continues to accelerate, many organizations still operate without clearly defined internal rules governing the use of AI technologies.

At the same time, regulatory scrutiny and client expectations are evolving significantly, particularly for companies operating within or toward the European Union market. Questions surrounding AI governance, data protection, vendor compliance, transparency, accountability, and the responsible use of generative AI tools are becoming part of standard business and compliance discussions.

In practice, many organizations already use platforms such as generative AI assistants, AI coding tools, automated HR systems, or enterprise AI solutions without fully assessing how employees interact with those systems, what data is being processed, or whether appropriate internal safeguards are in place. As a result, AI-related risks are no longer viewed solely as technical or operational issues, but increasingly as legal, compliance, and reputational concerns.

For IT companies, some of the most relevant challenges today include:

• ensuring GDPR compliance when AI systems process personal data,
• regulating employee use of generative AI tools,
• protecting confidential business and client information,
• reviewing AI vendors and third-party AI providers,
• addressing intellectual property and ownership issues related to AI-generated content,
• implementing internal AI governance frameworks and policies,
• responding to evolving European regulatory requirements concerning AI systems and digital compliance.

In many cases, enterprise clients and international partners now expect companies to demonstrate that AI usage is subject to internal oversight, documented procedures, and risk management controls. AI governance is therefore becoming an important part of broader corporate governance and operational resilience strategies, particularly for technology companies working in regulated or cross-border environments.

The growing importance of AI governance is not limited to compliance with future regulations alone. Organizations are increasingly recognizing the need to establish internal standards that allow employees to use AI technologies safely and responsibly while minimizing legal, security, and reputational risks. This includes implementing AI usage policies, defining approval and procurement processes for AI tools, conducting risk assessments, and establishing clear accountability structures.

As AI technologies continue to develop, companies that proactively address governance and compliance issues are likely to be better positioned to meet both regulatory expectations and client requirements in international markets.

Majstorović & Partners follows developments in AI governance, data protection, and digital compliance through advisory work with technology and IT companies, focusing on regulatory compliance, internal AI policies, data protection matters, contractual and compliance aspects of AI implementation, and broader legal considerations surrounding the use of AI technologies in business operations.

This publication is provided for general information purposes only and does not constitute legal advice or a legal opinion with respect to any specific matter. Legal advice should be obtained based on the circumstances of each case.