North Highland partnered with a state agency to establish a comprehensive AI governance program from the ground up. We designed a scalable AI governance operating model tailored to the client’s regulatory environment and enterprise systems. This meant clearly defining roles and responsibilities, setting up decision gates for AI project intake, and deploying a risk classification system to make oversight manageable.
Governance was operationalized through integrated tools, audit-ready documentation, and alignment with state procurement and data privacy standards. Combined, this enabled the agency to responsibly adopt AI while ensuring transparency, accountability, and public trust.
The Challenge: AI Safety in the Public Sector
This Public Sector agency recognized a strategic opportunity to lead AI adoption within the public sector. They envisioned using AI to transform service delivery and operational efficiency, but lacked a structured approach to manage these initiatives safely. Leadership recognized the need for comprehensive AI Governance to ensure responsible adoption, standardization, and maximum value realization.
The agency engaged North Highland to establish an AI Governance Program that would provide structure, standards, and support for all AI initiatives. They specifically needed assistance with governance implementation, vendor evaluation standards, identifying the right AI use cases, , monitoring project progress, and educating staff. The goal was to build strong strategic AI capability within their organization.
Our Approach: AI Governance for State Agencies
North Highland worked closely with the agency to develop detailed evaluation criteria covering multiple dimensions of AI Governance. Our comprehensive assessment framework included: 
- Governance structures
- Compliance management
- Use case evaluation
- AI risk and policy enforcement
- Model monitoring capabilities,
- Machine learning model explainability
- LLM monitoring and incident alerting
To meet the need for an AI Governance GRC platform, the North Highland team performed a rigorous vendor assessment process that included market
research and live demonstrations. After detailed analysis, our team determined that no single solution fully satisfied all requirements, highlighting the necessity for dual-system architecture. The recommended solution identified complementary platforms: 1) A robust GRC platform, and 2) a dedicated centralized AI model monitoring system. This strategic approach streamlined governance processes, reduced operational complexity, and ensured comprehensive compliance oversight across the agency's multi-cloud environment.
Our implementation strategy followed North Highland's proven AI Governance methodology, which tackled potential risks head-on while still allowing innovation to flourish. We set up clear protocols for monitoring and maintaining AI systems, creating appropriate transparency in AI decision-making, and addressing unique-to-Public-Sector compliance challenges.
The Value Delivered:
Partnering with North Highland delivered major benefits for the agency.
Our AI Governance Program infused the agency with a systematic approach for managing AI initiatives. This program now serves as the foundation for responsible AI development and deployment across multiple functions.
Public Sector AI: Governance that Works
North Highland understands that public sector agencies are tasked with navigating a unique regulatory landscape. Our scalable governance model serves as a proven blueprint for state agencies seeking to harness AI's transformative potential while effectively managing risks. Through this structured approach to AI Governance, the agency is now positioned to deliver enhanced services to citizens reliably, maintaining transparency while ensuring appropriate oversight and accountability.
Ready to unlock AI's potential while protecting public trust? Let's discuss how North Highland can help you responsibly adopt AI while maintaining public trust.
