How to Manage AI Risks and Compliance
SECOND EDITION
By Rizwan Amin Sheikh, PMP, PhD
Founder & CEO, Global AI Excellence
Texas, USA
Abstract
The rapid adoption of Artificial Intelligence (AI) across sectors inevitably calls for governance, risk management, and compliance for which most of the organizations around the world are often ill-prepared. This paper presents an in-depth discussion of AI governance approaches that explores the complexities and possibilities of AI technologies. As AI models get more complex and independent, the massive governance structures need to be put in place to counterbalance the gamut of risks and threats from deploying AI, including ethical issues, transparency challenges, and regulatory compliance failures.
The author presents a three-component adaptive governance framework comprising Risk Management, Compliance, and Ethical Considerations. It argues that because of these basic building blocks, strict standards and accountability framework need to be established to manage the increasingly capricious nature of AI-driven projects. The real-life case studies of industry leaders such as Google, Mastercard, and Anthropic are analyzed in this paper. These companies have deployed AI Governance frameworks and models that follow protocols like trustworthy and responsible AI that embrace safety, transparency, and sustainability in AI-based systems.
Additionally, the article analyzes growing trends and upcoming benchmarks of AI regulations and considers how organizations may adapt and align their practices with changing legal imperatives and social expectations. Special attention is given to the need for an interdisciplinary approach to AI governance, including participation from stakeholders such as technologists, business leaders, lawyers, and ethicists working together to create comprehensive AI governance strategies.
By comprehending and integrating these models, project managers and corporate leaders can adopt AI governance frameworks that maximize AI benefits whilst minimizing its adverse effects.
Learning Objectives:
- Discuss the AI Governance frameworks that companies can adopt to mitigate AI risks, implement responsible AI, and fulfill regulatory compliance requirements.
- Examine case studies of global companies, including Google and Mastercard, that have successfully implemented AI governance mechanisms that mitigate risk and compliance issues; the lessons learned can be generalized across industries.
- Analyze the state of governance and regulation around AI technologies today and the way organizations might be balancing compliance requirements and innovation pursuit.
- Provide guidance to project managers on incorporating ethical considerations into the actual implementation of AI so that AI systems are designed and executed in a manner that advances fairness, transparency, and accountability.
AI technologies have been developed by companies on a global scale: in a survey of US companies in 2021, 86% of respondents reported that AI would be a “mainstream technology” at their company that year, potentially contributing up to US$15.7 trillion to the global economy by 20306 7 When companies deploy AI technologies they often do so through machine learning. Machine learning systems — which consist of a chain of algorithms — digest and train on enormous amounts of data to identify patterns and generate predictions.
More…
To read entire article, click here
Editor’s note: Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 17th Project Management Symposium at the University of Texas at Dallas in May 2025. It is republished here with the author’s permission.
How to cite this paper: Sheikh, R. A. (2025). AI Governance and Frameworks: How to Manage AI Risks and Compliance; Originally presented at the 17th Project Management Symposium at the University of Texas at Dallas in May, republished in the PM World Journal, Vol. XIV, Issue VII, July. Available online at https://pmworldlibrary.net/wp-content/uploads/2025/07/pmwj154-Jul2025-Sheikh-AI-Governance-and-Frameworks.pdf
About the Author
Rizwan Amin Sheikh, “Dr. Riz,” PMP, PhD
Texas, USA
Dr. Riz is the Founder and CEO of Global AI Excellence (GAIX). He is an AI governance leader, AI strategist, technologist, professor, author, and serial entrepreneur with over 30 years of experience specializing in business and AI strategy, IT, digital transformations, AI governance, risk management, compliance, and AI/ML solutions. His expertise extends to project management, leadership development, and executive education at prestigious institutions, including Harvard, MIT, and the University of Cambridge. As a former Deloitte executive and management consultant, Dr. Riz has empowered the public sector and Fortune 500 companies—including PepsiCo, AT&T, Merrill Lynch, Progressive Insurance, the German Hospitals Group, STERIS (life sciences and biotech), PARCO (Oil & Gas), and Eaton Corporation—to transform their visions into reality.
He has held leadership positions, including CEO, Chairman of the IT Board, Senior Executive at Deloitte, and President of the Project Management Institute (PMI) chapter. Dr. Riz has been a keynote speaker and regularly presents at conferences, including those organized by PMI and Intel. He has taught AI strategy, leadership, project management, and entrepreneurship in executive education programs at Harvard, MIT, LUMS, KSBL, and the University of Cambridge (UK).
In the last 10 years, Dr. Riz’s impactful work with the public sector and large-scale companies has led to cost savings of over $300 million for clients through IT/AI governance, risk management, compliance, program management, and operational efficiencies. Dr. Riz has helped global companies achieve an average of 25% year-over-year revenue increases by formulating and executing business and AI strategies, implementing AI/ML solutions, re-engineering business processes, enhancing business acumen, fostering an entrepreneurial culture, and executing digital transformations. He has enabled organizations to adopt responsible AI while managing risks and complying with applicable laws and regulations.
Dr. Riz has received the “Microsoft Award for Innovative Vision and Dynamic Leadership.” He has authored articles on “AI Governance Framework: How to Manage AI Risks and Compliance” and “Managing Projects Successfully through AI and ChatGPT.” He is also the author of “Blue Shark Team-Building: Leading High-Performance Teams during a Crisis,” a seminal work offering insights into navigating challenges like COVID-19.
He holds a Ph.D. from SKEMA Business School, an MBA from Cleveland State University, and a B.Sc. in Information Systems from Ohio State University. Moreover, he holds professional certifications, including AWS Certified AI Practitioner, Project Management Professional (PMP), PMI-ACP (Agile Certified Practitioner), and Certified Scrum Master (CSM). Dr. Riz can be contacted at rsheikh75@gmail.com
Learn more at www.gaix.ai
