The text discusses the importance of effective AI governance for organizations to unlock the benefits of artificial intelligence while minimizing associated risks. Without proper governance, AI systems can cause regulatory penalties, reputation damage, biased outcomes, and wasted resources. The EU AI Act is a key framework that sets standards for AI development and deployment, with fines reaching €35M or 7% of annual revenue. Organizations must adapt to this changing regulatory landscape by implementing seven key steps for effective AI governance, including defining clear organizational structures, appointing AI ethics officers, documenting AI models, and establishing customizable evaluation criteria. Additionally, organizations should prioritize continuous monitoring and observability, protect their AI systems with robust input filtering and output verification, and develop an AI governance culture that addresses the human side of AI deployment. By implementing a comprehensive AI governance framework, organizations can drive innovation while managing risks and maintaining stakeholder confidence.