As artificial intelligence (AI) adoption surges and organisations move from the ‘should we?’ phase to the ‘how do we?’ phase, it’s natural to evaluate the likelihood of positive returns on AI investments. That’s always been the case with the onset of each new technology paradigm: C-suite executives, guided by their boards and aided by technical and business teams, remain keenly focused on traditional metrics such as return on investment, shareholder equity, developing and extending competitive advantage, and ensuring superior customer relationships.

This time is different, however. I recently experienced that firsthand when I went to visit a major customer. My contact, a senior decision maker, gave me a pointed piece of advice about how to talk about AI with his boss, the CEO: “Please don’t say anything negative about AI.” The subtext was clear: The company was fully committed to AI and didn’t want any cognitive dissonance to dissuade them from their mission.

It's hard to imagine a CEO taking such an absolutist stance on previous technology waves, such as cloud, bring your own device, or the internet of things. CEOs, board members, and technical leaders would be pragmatic in evaluating the benefits of investments and put mileposts in place to gauge progress – and to determine if and how to proceed.

AI is certainly a different kind of paradigm, though. While no one is casting aside careful evaluation and monitoring of AI investments, the underlying assumption is that we’re stepping on the accelerator. We’re all enthused not only by its potential for transformation and innovation, but also by how this technology can be leveraged for remarkable societal good.

However, while the accelerating momentum toward AI and agentic systems is undeniable, it is vitally important to set aside the fervour around AI and take a sober look at how to deliver safe, secure, and tightly governed systems at enterprise scale. 

Many organisations are underestimating the challenges of AI governance, in large part because they think they’ve been here before. They already have many experiences of ensuring robust cybersecurity and strict governance for new technologies, as they’ve done for remote systems, cloud computing, the internet of things, and more. They already have a corporate commitment to doing governance correctly and a sound governance model. 

But this new era of AI and agentic systems is different. New challenges abound, and AI strategy, build-out, and governance must be in alignment from the start to ensure proper operational, ethical, and regulatory outcomes. 

Our intention with this Peer Insights guide is to raise what we believe are existential issues around governance for this powerful, complex, and unprecedented technology wave. Few technologies have merited the often overused phrase ‘inflection point’ more than AI. The speed of AI adoption is nothing short of breathtaking; however, today’s runaway embrace of AI is far stronger than our current ability to govern it. That’s because AI represents a fundamental shift in how organisations do their business, interact with customers, make vital decisions, and execute their plans. This isn’t just a technology play: It’s a strategy for success and survival for entire industries and our global economy. The stakes have never been higher.

CEOs care so passionately about AI because they see it changing nearly everything we’ve learned and believed to be true about organisational success and failure. CEOs are in their positions for one purpose: to grow the business. AI can do that by transforming their processes and sparking new ideas. When that customer representative forewarned me, I really wasn’t surprised to hear his CEO felt so strongly about AI: Research from BCG indicates that more than 94% of CEOs say they still plan to deploy AI irrespective of demonstrated business value, even if there is a lack of tangible ROI or financial benefits from the start. 

Which brings us to the central role of AI governance. As we all know, there are many fundamental elements to any governance strategy, starting with robust, scalable, and intelligent cybersecurity. Cybersecurity - the foundation of governance - also includes the twin imperatives of accountability (‘rogue AI’ being a real thing, after all) and regulatory compliance.

But good AI governance has to go even further. Operational integrity is key to good governance because so much sensitive and even proprietary data is poured into AI models and accessed through powerful agentic AI systems. Now more than ever, organisations have to be transparent with customers and trading partners about how their AI systems operate, what kind of data is accessed, and how it is protected. And that doesn’t just mean being upfront with customers by telling them when they are interacting with an AI agent. Let’s take a typical retail use case: Imagine you’re on a website looking at clothing, and the agent recommends specific styles of clothing in specific colours. True operational integrity would allow you to discover why and when the agent made those recommendations. Was it based on your prior purchasing history, or on your browsing patterns on a recent web session? AI and agentic governance take the guesswork out of the equation for those interacting with the system and help breed greater confidence and trust.

It's critically important for decision makers to view AI governance holistically, rather than through a series of narrow lenses. For instance, even though cybersecurity is the foundation of good AI governance, it’s a mistake to treat AI governance primarily as a cybersecurity problem. If asked about ownership of AI governance, CEOs cannot and should not reply, “Oh yeah, the CISO has that covered.”

AI governance is fundamentally an enterprise risk problem, which means everyone must be involved in creating, deploying, managing, evaluating, and adjusting AI governance guardrails on a real-time basis. Again, AI is a different kind of risk environment than any we’ve previously encountered. For the most part, organisations are simply not adequately prepared to apply the right level and right type of governance to AI and agentic systems. I’ve spent much of the past 15 years of my career building governance frameworks, and while it has never been easy, we have had the advantage of being able to control many of the variables – such as infrastructure and network access – impacting governance decisions. With AI and agentic, we no longer have that advantage.

To explore the critical and complex issues of AI governance, we’ve enlisted five leading voices to bring their real-world experience to the discussion. Together, our five authors help lay out the new rules of the road for governing AI and agentic systems at scale.

Just as my customer gave me a heads up about the realities of speaking with his boss about AI, I’d like to offer you a heads up about the realities of AI governance challenges before you read this Peer Insights guide. 

1. Visibility is paramount for successful AI governance. As we learned during the growth of trends such as cloud, bring your own device, and remote work, our employees will push the envelope with a do-it-yourself mindset. These tech-savvy and resourceful users are already making rogue AI a reality, so organisations need more visibility than ever into where AI ‘science projects’ and sandboxes are operating without anyone’s knowledge.
2. AI governance must reflect the stunning velocity of change in AI development and deployment. Not only does AI have its own never-imagined rate of change, but the technology is changing everything else faster – product development, supply chains, marketing programmes, and more. AI governance has to evolve just as rapidly. Governance in the AI world must be a living system, constantly evolving with new technology use cases.
3. Trust boundaries are incredibly different and difficult to manage in AI governance. AI represents a new class of identity that simply didn’t exist before. That means AI doesn’t fit neatly into your existing identity management framework, making things like application whitelists and zero trust network access less effective.

Unfortunately, many CEOs, board members, and business executives simply don’t understand the profound importance and complexity of these issues. They may have been heartened by how they integrated generative AI into their technology frameworks and their business processes, but GenAI was pretty familiar territory for CIOs, CTOs, and CISOs. Agentic AI is different for several reasons, including its automation and self-learning capabilities. Don’t be lulled into a false sense of security: Agentic AI is not simply a refresh of GenAI.

As you get ready to dive into the following chapters, rethink how you define governance when applying it to AI systems and agentic AI. Most traditional governance models are imagined, constructed, and deployed as gates, preventing people from doing things or going places they shouldn’t. Instead, think of AI governance as a guardrail to guide and direct people to get the most out of AI without creating problems. With so much excitement and investment around AI, organisations – and their employees – want to get the most out of their AI and agentic systems. We all know people don’t want to hear “no, you can’t do that”, so an effective governance system should use guardrails to drive proper, responsible, and safe usage of the technology.

Finally, as complex as AI and agentic governance are and will continue to be, don’t overthink things in hopes of creating the perfect model – it doesn’t exist. My advice is to start now, even if the model and framework are imperfect, and then bring the business along with you.

We at Palo Alto Networks are excited to give you insights, ideas, and actions you can take away from the chapters of this guide. We encourage you to share what you learn with your colleagues, peers, and team members – and to take prudent steps to build an AI governance model that rewards innovation without allowing your organisation to drift into dangerous waters.

Haider Pasha is VP & Chief Security Officer, EMEA, Palo Alto Networks