A newly appointed AI governance officer at a mid-size organization needs to justify the budget for an AI governance program to the CFO. Which argument is most compelling from a financial risk perspective?

• A.Competitors who invest in AI governance will attract better talent, creating a competitive disadvantage for organizations without governance programs
• B.AI governance will increase employee productivity since they will spend less time worrying about AI risks
• C.Unmanaged AI risk creates quantifiable financial exposure: EU AI Act fines up to 3-7% of global annual turnover, CFPB fair lending enforcement actions with restitution and fines, and data breach liability from AI systems processing personal data - a governance program costs a fraction of the expected value of these potential penalties
• D.AI governance is a prerequisite for all AI deployments and therefore an unavoidable cost