AI Governance
The rapid proliferation of AI systems, especially Externally Hosted AI and Large Language Models (LLMs) like ChatGPT, has raised significant concerns about their responsible and secure use. This paper addresses these concerns within the manufacturing sector, presenting a procedural risk analysis and AI governance framework at the organisational level to ensure judicious deployment. Central to this proposal is the establishment of an AI Governance Team to oversee compliance with internal and external policies throughout the lifecycle of these technologies. A case study using OpenAI's ChatGPT demonstrates a three-tiered risk analysis covering Generic, Categoric, and Use-Case specific risks. This framework provides businesses in manufacturing with a comprehensive toolkit to navigate AI development complexities, ensuring efficiency and safety.