[Glossary](https://telxpress.com/glossary/) / AI # AI governance policy An **AI governance policy** is the written set of rules a business adopts for how AI tools may be used, what data they may touch, who approves them and how their output is checked. - AI - Updated October 11, 2026 - Written by the Telxpress advisory team 01 In depth ## What it is, why it matters and *what to ask a vendor* An AI governance policy answers practical questions before they become incidents: which tools are approved, what customer or employee data may be entered into them, how AI is disclosed to customers, who owns each AI system, how results are reviewed, and how long records such as transcripts are kept. The NIST AI Risk Management Framework describes the functions a program should cover: govern, map, measure and manage. Growing businesses need this earlier than they expect. Staff adopt AI tools on their own, a vendor's new feature starts recording meetings, and regulated data ends up somewhere nobody chose. A short policy that everyone understands prevents more problems than a long one nobody reads. When you work with an advisor, ask for a policy sized to your business, mapped to the rules that already apply to you (HIPAA, GLBA, FERPA, PCI DSS, state privacy law), with an approval path for new tools and a review date. Ask vendors to show how their product supports the policy, not just that it is compliant. 02 Related terms ## Terms that usually come up *alongside it* - AI ### [AI readiness](https://telxpress.com/glossary/ai-readiness/) AI readiness is a measure of how prepared a business is to put AI to work, covering its phone and call handling, data and systems, network, meeting rooms, policies and leadership commitment. - AI ### [Hallucination](https://telxpress.com/glossary/hallucination/) A hallucination is a confident but false statement produced by an AI model, such as an invented policy, price or appointment slot, and it is the main accuracy risk in any customer-facing AI system. - AI ### [Agentic AI](https://telxpress.com/glossary/agentic-ai/) Agentic AI describes AI systems that can take actions to complete a goal, such as booking an appointment, updating a CRM record or sending a follow-up, rather than only answering questions. - Security & compliance ### [Call recording consent](https://telxpress.com/glossary/call-recording-consent/) Call recording consent is the permission the law requires before a phone call is recorded; in California, every party to a confidential call must be told and agree, which is often called two-party consent. 03 At Telxpress ## Where this shows up *at Telxpress* The pages and articles where this term does real work: what we advise, build and support. - Page ### [AI Consulting & Strategy for Businesses](https://telxpress.com/ai-advisory/) Practical AI roadmaps, tool selection and deployment from advisors who also build it. Book a free AI readiness assessment. - Page ### [Free AI Readiness Assessment for Your Business](https://telxpress.com/ai-readiness/) Answer ten questions about your calls, workflows and systems and get a readiness score with three AI opportunities specific to your business. - Industry ### [Industries We Serve: AI Built for Your Sector](https://telxpress.com/industries/) AI use cases and business technology for healthcare, financial services, education, nonprofits and automotive dealerships in Southern California. 04 Sources ## Public *references* The standard or law this definition rests on, as published by its owner. Fetched and checked on the review date above. - [NIST AI Risk Management Framework](https://www.nist.gov/itl/ai-risk-management-framework) nist.gov - [NIST AI 100-1, Artificial Intelligence Risk Management Framework (AI RMF 1.0) (PDF)](https://nvlpubs.nist.gov/nistpubs/ai/NIST.AI.100-1.pdf) nvlpubs.nist.gov Next step ## Want This Applied *to Your Business?* Book a free 30-minute AI readiness consultation. You'll leave with three AI opportunities specific to your business, whether you work with us or not. [Book My Free Consultation](https://telxpress.com/book/) [Take the Free AI Readiness Assessment](https://telxpress.com/ai-readiness/) [Or call 24/7: (949) 861-4500](tel:+19498614500) Last reviewed: October 11, 2026. Published by Telxpress, Irvine, CA.