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Written by Max Zeshut
Founder at Agentmelt
The policies, processes, and standards that control how data is collected, stored, accessed, used, and disposed of within an organization. For AI agents, data governance determines what data the agent can access (least-privilege access controls), how it processes sensitive information (encryption, anonymization), where data is sent (which LLM providers, what jurisdictions), and how long it's retained. Poor data governance in agent deployments creates compliance risk (GDPR, HIPAA violations), security vulnerabilities (over-privileged agents), and trust erosion (customers learning their data was sent to third-party AI providers without consent).