AI and the new way of governing: Evolution, not rules

The rise of artificial intelligence (AI) is not just another technological shift; it is a profound transformation in how decisions are made and how work is organised, writes Tracy Moore.

The rise of artificial intelligence (AI) is not just another technological shift; it is a profound transformation in how decisions are made and how work is organised. When left unguided, AI could pose legal, ethical, and reputational risks. With the right governance, we can avoid these threats and use AI to drive productivity, creativity, business growth, and innovation.

Using the Voluntary AI Safety Standard (VAISS) as the guiding principle for design, MYOB’s bespoke Design Authority for AI Solutions (DAISy) was created to ensure all of our AI projects are built responsibly and in line with ethical standards.

While it started out as a set of processes to check that our AI tools were safe and ethical before they touched customer data or business decisions, we soon realised something: fixed rules don’t work in a fast-moving space like AI. What’s “safe” today might not be tomorrow. So, Daisy evolved into something bigger – a living governance system that adapts as the technology and the risks change.

We call this evolutionary governance. Instead of a thick rulebook that becomes outdated, DAISy works more like a garden. It’s constantly tended, with weeds of irrelevance pulled out and new protections planted as needed. It’s not about throwing out rules – they still matter – but about treating them as provisional, open to review and refinement.

DAISy is more than a framework; it’s a way of working. Here’s what it does in practice:

• Reviews AI projects regularly – not once, but throughout their life cycle.
• Tests decisions against core principles – such as fairness, transparency, and customer safety.
• Encourages challenge and debate – if something doesn’t look right, it gets re-examined.
• Updates safeguards quickly – when new risks or opportunities emerge, the framework shifts.

This flexibility means DAISy can ensure compliance and safety without strangling innovation. We can experiment with new AI tools, confident that there’s a system watching for risks and adjusting as the ground shifts.

The good news is, you don’t need a “DAISy” or a big budget to apply these principles and keep your people safe. Many businesses, especially smaller ones, lack the luxury of a compliance department but do have the agility to make decisions and changes quickly. Evolutionary governance plays to that strength.

Here are some simple steps all businesses can take:

1. Start with clear principles. Write down three to five non-negotiables for how you’ll use AI – for example, “customer data stays private,” or “AI won’t be the final decision-maker in financial approvals.” Keep them short, simple, and visible.
2. Make governance continuous, not one-off. Don’t just tick a box when you first install a tool. Schedule regular check-ins – monthly or quarterly – to ask: is the AI still working as expected? Have new risks popped up?
3. Encourage feedback. Create a simple channel (a shared inbox, a quick Slack thread, a weekly stand-up) where employees can flag issues or odd results from AI tools. Make it safe to raise questions without blame.
4. Adapt quickly. If you discover a risk, change the rule or the safeguard immediately. Don’t wait until the end of the year to update policies. Evolutionary governance is about responsiveness.
5. Document the changes. You don’t need a 50-page manual. A one-page log of decisions and updates can keep you accountable and show staff (or regulators, if needed) that you’re taking governance seriously.

Adaptability is the key challenge of our time. Workers will change occupations multiple times in their lives, and systems must adjust just as quickly. The same is true for AI governance. We can’t afford to treat rules as permanent. We need living frameworks that expect change and are ready for it.

That’s what DAISy represents: disciplined flexibility. It’s a model any business can adopt, regardless of size. With a few clear principles, regular reviews, open feedback, and a willingness to adapt, businesses can govern AI in a way that keeps their people safe, protects their customers, and allows innovation to flourish.

Tracy Moore is the general manager of AI and data at MYOB.