Yale SOM: A Practical Framework for AI Governance

Presented at Yale School of Management on October 1, 2025

This talk focused on what actually works when AI moves from theory to application in environments where customer impact, regulation, and reputation are real constraints. I shared the PRIME framework (Purpose, Risk, Inputs, Model, Evidence) as a practical way to evaluate AI use cases from a management perspective and translate governance principles into operating decisions. We also covered cross-border realities: how rules and expectations change by region, and why evidence and control design matter more than disclaimers.

Key takeaways

• Start with fit-for-purpose AI. AI reliably supports high-volume text tasks and governed retrieval (RAG), but it becomes fragile when used for regulated outputs without review or in low-feedback domains.

• PRIME is an operating system, not a policy. Define the use case charter and success metrics (Purpose), tier risk by harm and document go-live criteria (Risk), verify data rights and lineage (Inputs), set guardrails and testing plans (Model), and maintain monitoring and change logs (Evidence).

• Case studies show the difference between “governed” and “hope-based.” Morgan Stanley’s internal assistant illustrates governed corpuses, privacy guardrails, and ongoing evaluation, while NYC’s small business chatbot highlights what happens when accuracy thresholds, curation, and evidence are missing.

• Cross-border AI is a governance multiplier. Lawful basis and consent thresholds, “high-risk” definitions, data residency/transfer rules, recordkeeping, audit requirements, and language-access duties vary materially by region - and some requirements (like machine unlearning and IP provenance proof) are structurally difficult without early planning.

• The next decade rewards teams who operationalize governance early. AI changes fast; governance principles endure. The winners build repeatable controls and evidence now, so adoption accelerates instead of stalling under scrutiny.

Read the LinkedIn post: https://www.linkedin.com/posts/cookchristopher_responsibleai-aigovernance-yalesom-activity-7379866571802038272-Nx3b