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This month's newsletter explores four interconnected challenges that are reshaping how organisations approach AI governance. From sovereignty conflicts to energy constraints to shadow AI proliferation, September's articles provide practical guidance for navigating what have become immediate strategic priorities.
The sovereignty piece examines how AI governance is fragmenting into incompatible systems, forcing organisations to choose between optimising for trust, speed, or control. Goldman Sachs' recent analysis then validates what I've been observing about energy constraints – they're no longer a niche concern but a board-level strategic imperative, particularly for UK organisations facing costs four times higher than competitors.
Meanwhile, the shadow AI articles address a striking paradox: whilst 95% of formal AI pilots fail, employees are successfully using AI tools to deliver real productivity gains – often without IT approval. The amnesty approach I propose transforms this from compliance problem to innovation opportunity, followed by practical steps for operationalising what you discover.
If your time is limited, I particularly recommend the AI sovereignty article for its strategic perspective on navigating incompatible regulatory regimes, and the first shadow AI piece for its pragmatic approach to governance that acknowledges rather than fights organisational reality.
How is your organisation balancing these competing pressures, and which governance approaches are proving most effective in practice? I'd love to hear your thoughts on these evolving challenges.
-Mario
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