The Case for AI Governance: Moving from Efficiency to Strategic Growth

In June 2025, the Institute for Real Growth (IRG) studied how AI is reshaping marketing and how CMOs can drive meaningful integration. The findings are clear: 2025 marked the shift from experimentation to implementation.

Now in 2026, organizations without formal AI Governance risk missing strategic value.

Why Efficiency Alone Isn't Enough

Efficiency gains are now table stakes. Like the early digital era when simply having a website wasn't enough, today's AI adoption requires cross-functional support, clear processes, and strategic direction. Ad hoc implementation creates inconsistencies and misses opportunities, highlighting the gap between seeing potential and driving growth.

What Winning Organizations Do Differently

High-performing teams in 2026 adopt AI with three distinct approaches:

1. Strategic Precision – Using AI for business growth, not just operational improvements
2. Cross-functional Collaboration – Partnering beyond IT to include HR, especially critical for global organizations avoiding disjointed approaches
3. People-First Investment – Building capability through training and development (examples: P&G's knowledge sharing, Vodacom's leadership-led training); 

The Case for AI Governance

As AI becomes essential and organizations seek AI-skilled talent, governance frameworks are becoming standard for leading marketing teams. AI Governance delivers:

A. Strategic Alignment

• Ensures initiatives support humanized growth for all stakeholders
• Prioritizes investments by pain-versus-gain analysis
• Aligns AI with business outcomes, not just technology adoption 

B. Risk Management & Ethical Standards

• Creates guardrails for responsible use
• Builds trust and protects communities
• Ensures genuine value creation over gimmicky applications

C. Organizational Capability Building

• Formalizes training and education programs
• Enables leadership by example
• Scales best practices organization-wide

D. Cross-Functional Coordination

• Structures partnerships across HR, operations, and customer service
• Breaks down silos for collaborative success
• Winning CMOs partner significantly more with HR than the underperformers

Governance Components to Consider

• Leadership accountability
• Clear policies and ethical guidelines
• Training and capability development programs
• Cross-Functional governance committees - or within the digital center of excellence (D.C.O.E)
• Success metrics tied to business outcomes 
• Ongoing learning mechanisms 

"AI transformation is not something that will happen to your organization, but something you as a leader will drive, design, and champion."

Governance provides the structure for intentional design. Organizations that formalize AI governance position themselves to drive humanized growth and competitive advantage.

Don't leave AI adoption to chance, ensure you govern it strategically.