UNIVERSITY OF OXFORD | MSC AI
FOR BUSINESS
MODULE: AI GOVERNANCE (TERM 1, 2026)
TOPIC: ETHICAL FRAMEWORKS, POLICY, AND LEGAL COMPLIANCE
1. THE 2026 GOVERNANCE LANDSCAPE
By 2026, AI Governance has moved from "voluntary ethical guidelines" to
"mandatory legal compliance." For business leaders, governance is no longer just
a legal hurdle—it is a competitive advantage that builds consumer trust and avoids
catastrophic fines.
1.1 Defining AI Governance
The structured system of rules, practices, and processes used to ensure an
organization’s AI systems are developed and deployed responsibly. It bridges the
gap between Ethical Principles (Values), Responsible AI (Technical Best Practices),
and Governance Frameworks (Organizational Structure).
2. CORE ETHICAL FRAMEWORKS
Business schools in 2026 teach a "Multi-Lens" approach to ethics, combining
classical philosophy with modern AI principles.
• UTILITARIANISM (Consequentialism): Focuses on maximizing the "net
good." Business Application: Assessing if the efficiency gains of an AI tool
outweigh the potential privacy risks to users.
• DEONTOLOGY (Duty-based): Focuses on adherence to moral rules and
rights regardless of the outcome. Business Application: Ensuring an AI never
violates a user's right to privacy, even if doing so would increase profit.
FOR BUSINESS
MODULE: AI GOVERNANCE (TERM 1, 2026)
TOPIC: ETHICAL FRAMEWORKS, POLICY, AND LEGAL COMPLIANCE
1. THE 2026 GOVERNANCE LANDSCAPE
By 2026, AI Governance has moved from "voluntary ethical guidelines" to
"mandatory legal compliance." For business leaders, governance is no longer just
a legal hurdle—it is a competitive advantage that builds consumer trust and avoids
catastrophic fines.
1.1 Defining AI Governance
The structured system of rules, practices, and processes used to ensure an
organization’s AI systems are developed and deployed responsibly. It bridges the
gap between Ethical Principles (Values), Responsible AI (Technical Best Practices),
and Governance Frameworks (Organizational Structure).
2. CORE ETHICAL FRAMEWORKS
Business schools in 2026 teach a "Multi-Lens" approach to ethics, combining
classical philosophy with modern AI principles.
• UTILITARIANISM (Consequentialism): Focuses on maximizing the "net
good." Business Application: Assessing if the efficiency gains of an AI tool
outweigh the potential privacy risks to users.
• DEONTOLOGY (Duty-based): Focuses on adherence to moral rules and
rights regardless of the outcome. Business Application: Ensuring an AI never
violates a user's right to privacy, even if doing so would increase profit.
