AI Governance Program Charter

Overview

Every AI governance program needs a charter—the foundational document that establishes the program's authority, scope, and operating principles. Without a charter, governance operates on informal authority that can be challenged or ignored. With a charter approved by the Board and CEO, governance has the formal backing to be effective.

This charter template provides the structure and language for establishing your AI Governance Program with appropriate authority. It's designed for Board-level approval, with signature blocks for CEO, Board Chair, and CAIO.

What's Inside

• Purpose Statement: Clear articulation of why the AI Governance Program exists and its authorization from Board of Directors
• Program Objectives: Six core objectives—ethical alignment, risk management, accountability, compliance, transparency/trust, and responsible innovation
• Scope Definition: What AI systems are governed (developed, procured, embedded, decision-making) and what's explicitly out of scope (traditional software, basic analytics, rule-based automation)
• Governance Structure:
  • Board of Directors (ultimate oversight, charter approval, quarterly updates, risk appetite)
  • Chief AI Officer (accountable executive, reporting line, committee chair, approval/halt authority)
  • AI Governance Committee (composition, responsibilities, meeting cadence)
• Operating Principles: Seven principles guiding governance activities—human oversight, transparency, fairness, privacy, security, accountability, and risk-based approach
• Key Governance Processes: AI inventory management, project intake, risk assessment, ethics review, vendor due diligence, ongoing monitoring, incident response
• Reporting & Escalation: Quarterly Board reports, monthly executive dashboard, incident escalation timelines
• Amendment & Review Procedures: How the charter is updated and annual review requirements
• Approval Signatures: Signature blocks for CEO, Board Chair, and CAIO with dates
• Document History: Version control for charter updates

Who This Is For

• Chief AI Officers establishing governance programs
• CEOs authorizing AI governance
• Board Members approving governance charters
• Legal/Compliance Leaders ensuring proper governance foundations
• Governance Consultants helping clients establish programs

Why This Resource

A governance program without a charter lacks formal authority. This template provides Board-ready language that establishes the program on solid footing—with clear authority, defined scope, and documented principles that can guide decision-making.

The signature blocks make authorization explicit, creating accountability at the highest levels of the organization.

FAQ

Q: How is this different from the Governance Committee Charter?

A: The Program Charter establishes the overall AI Governance Program and its authority. The Committee Charter specifically establishes the AI Governance Committee as one component of the program. Most organizations need both—the Program Charter as the foundational document and the Committee Charter to operationalize governance oversight.

Q: Who should approve the Program Charter?

A: The charter should be approved by the Board of Directors (or appropriate Board committee) and signed by the CEO and Board Chair. CAIO signature acknowledges accountability for program implementation.

Q: What's included in scope vs. out of scope?

A: In scope: AI systems developed, deployed, or operated by the company; procured from vendors; embedded in products/services; used for decision-making. Out of scope: Traditional software without AI/ML, basic statistical analyses, rule-based automation without learning capabilities.