Governance of Generative Artificial Intelligence for Companies

Abstract: Generative Artificial Intelligence (GenAI), specifically LLMs like ChatGPT, has swiftly entered organizations without adequate governance, posing both opportunities and risks. Despite extensive debates on GenAI's transformative nature and regulatory measures, limited research addresses organizational governance, encompassing technical and business perspectives. Although numerous frameworks for governance of AI exist, it is not clear to what extent they apply to GenAI. Our review paper fills this gap by surveying recent works with the purpose of better understanding fundamental characteristics of GenAI and adjusting prior frameworks specifically towards GenAI governance within companies. To do so, it extends Nickerson's framework development processes to include prior conceptualizations. Our framework outlines the scope, objectives, and governance mechanisms tailored to harness business opportunities as well as mitigate risks associated with GenAI integration. Our research contributes a focused approach to GenAI governance, offering practical insights for companies navigating the challenges of GenAI adoption and highlighting research gaps.