Charter
A model charter for establishing an AI Council with clear mission, scope, authority, and accountability.
Why a Charter Matters
A charter transforms an informal group into a legitimate governance body. Without one, councils drift. Membership is unclear, authority is disputed, and decisions lack standing. NCUA's data governance charter is a strong precedent: it defines purpose, guiding principles, responsibilities, membership, meetings, quorum, consensus, advisory roles, and chair responsibilities.
Model Charter Template
Below is a model charter you can adapt to your organization. Each section includes guidance on what to include and why.
1. Purpose
State the council's mission in one or two sentences. Example:
The AI Council exists to ensure that [Organization]'s use of artificial intelligence is safe, ethical, compliant with applicable laws and standards, and aligned with our values and strategic objectives.
2. Scope
Define what falls under the council's authority:
- All AI and machine learning systems developed, procured, or operated by the organization
- Generative AI tools and services used by employees
- Vendor and third-party AI systems integrated into business processes
- Automated decision-making systems that affect customers, employees, or the public
3. Authority
Specify the council's decision rights:
- Approve: Authority to approve AI use cases that meet policy requirements
- Conditionally approve: Authority to approve with required mitigations
- Escalate: Authority to escalate to executive sponsor or board
- Block: Authority to halt AI use cases that pose unacceptable risk
- Recommend: Advisory authority on policy, standards, and risk appetite
4. Accountability
The council reports to [Executive Sponsor / Board Committee / CTO]. An annual report is provided to [Board / Executive Leadership] covering the AI inventory, decisions made, incidents, and policy changes.
5. Membership
See Roles and Membership for detailed role definitions.
6. Meetings
See Meetings and Decisions for cadence, quorum, and decision rules.
7. Review and Renewal
The charter is reviewed annually or when there is a material change in the organization's AI portfolio, regulatory environment, or risk appetite.