Agentic AI and Governance: The Future Is Closer Than You Think

Olga Mack, co-founder of Product Law Hub, reports that agentic AI is emerging as a transformative force in business and governance. As companies integrate these autonomous systems into their operations, legal teams must take an active role in defining the governance of AI, ensuring responsible implementation, and preparing for regulatory changes.

Unlike traditional AI, agentic AI goes beyond assisting decision-making and takes action autonomously, thus presenting both opportunities and risks. One of the primary concerns is accountability, that is, who is responsible when an AI system makes a mistake or takes action that conflicts with the company’s values. Legal teams must establish clear boundaries and oversight mechanisms to manage these risks. 

By defining what agentic AI systems can do without human intervention and requiring oversight for high-risk applications, legal can mitigate potential pitfalls while still leveraging the technology’s advantages.

Governance should be embedded into the design of agentic AI systems from the outset. Legal teams must implement safeguards such as data access restrictions, explainability requirements, and fail-safe mechanisms like a “kill switch” to ensure control over these systems. Collaboration between legal, product, and IT teams is crucial in integrating these protections effectively. As AI regulations evolve, businesses must remain proactive in tracking changes and ensuring their policies are adaptable. Legal teams should also consider incorporating accountability clauses into vendor contracts to define responsibility in case of AI-related issues.

Agentic AI is already being tested and deployed in various industries. As organizations navigate this transition, legal teams must guide the conversation on governance, regulations, and ethical considerations. Addressing these challenges now will not only reduce risks but also help shape the future of responsible AI implementation.