Data governance in the age of AI

Examining the shifting paradigm to a united governance umbrella

Advance data governance for advanced AI applications

Today’s data governance models struggle with the iterative nature of AI development cycles. Learn about the shift to unified governance and how to maximize its potential.

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62% of organizations believe a lack of data governance is the main data challenge inhibiting AI initiatives.

Source: Anandarajan and Jones, 2025 Outlook: Data Integrity Trends and Insights, Drexel University Center for Applied AI and Business Analytics and Precisely, Sept. 18, 2024

To cope, organizations are turning to modern data governance practices, but they present their own frontier of challenges. Enterprises must wrangle with a taxonomy that’s evolved past its old grids and charts, an ontology that now includes AI interpretations, and data quality issues that were inconceivable in simpler times. With leaders lacking confidence that their enterprise data is ready to make the leap from human-first to AI-only decisioning, organizations remain stuck on yellow, waiting for the green light to accelerate.

The ideal model integrates AI and data governance under a single governance umbrella. It enables complete transparency; creates enforceable policies and standards; eliminates duplicate data sets; and uses data, analytics, and AI use cases to deliver tangible value.

AI-first organizations will be architected around intelligent systems that autonomously manage core functions like customer service, HR, finance, and supply chain, while humans shift into roles focused on supervising AI behavior, shaping strategic direction, and ensuring ethical and compliant decision-making across the enterprise.

Governance is embedded into every data interaction, automatically tagging, classifying, and enforcing policies as data is created or accessed. This means that any data generated during production or logistics is immediately classified and governed according to policy.

AI assesses and enhances data quality in real time, using ML-driven anomaly detection, auto-cleansing, and feedback loops. Governance oversight remains human-involved, but AI continuously analyzes evolving AI-enabled processes and data usage to recommend policy and standard updates.

Put the C-suite in the driver’s seat

C-suite governance streamlines decision-making while mitigating risks and maximizing returns. Leadership involvement is also vital for organizational change, which AI demands.

Enable federated governance

Federated governance balances centralized oversight with decentralized execution. A centralized governance structure assists in establishing standards and protocols.

Elevate the role of metadata

Proper metadata identification ensures data security and control through role-based access and attribute lineage, supporting regulatory compliance.

Integrate diverse data types and optimize for AI

The integration of diverse data types is vital for creating a robust and versatile data-AI governance framework. Data integration supports both human and AI agents.

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Data governance in the age of AI

Dive deeper into the integrated Data + AI governance model, KPMG advanced data management framework, common triggers for governance modernization, and a closer look at key actions your organization can take now to ensure that governance becomes a centralized capability able to support expanding AI strategies.

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Harness the power of data to modernize operations

By harnessing data, your business can produce data products, tools, systems, and applications that drive business decision-making and help modernize operations.

KPMG named a “Leader” in Worldwide Data Modernization Services IDC MarketScape: Worldwide Data Modernization Services 2024 Vendor Assessment
KPMG is ranked #1 for quality AI advice and implementation in the US

Make the difference

In an increasingly competitive landscape, harnessing the power of your data unlocks new business possibilities, decreases risk, improves efficiencies, and drives growth. However, to do so requires data that is relevant, accurate, and in compliance with applicable regulations. KPMG can help lead your data governance journey. We have the skills and tools to implement a framework that is guided by leading practices and tailored to your business needs.