  The organizational use of artificial intelligence (AI) has rapidly spread
across various sectors. Alongside the awareness of the benefits brought by AI,
there is a growing consensus on the necessity of tackling the risks and
potential harms, such as bias and discrimination, brought about by advanced AI
technologies. A multitude of AI ethics principles have been proposed to tackle
these risks, but the outlines of organizational processes and practices for
ensuring socially responsible AI development are in a nascent state. To address
the paucity of comprehensive governance models, we present an AI governance
framework, the hourglass model of organizational AI governance, which targets
organizations that develop and use AI systems. The framework is designed to
help organizations deploying AI systems translate ethical AI principles into
practice and align their AI systems and processes with the forthcoming European
AI Act. The hourglass framework includes governance requirements at the
environmental, organizational, and AI system levels. At the AI system level, we
connect governance requirements to AI system life cycles to ensure governance
throughout the system's life span. The governance model highlights the systemic
nature of AI governance and opens new research avenues into its practical
implementation, the mechanisms that connect different AI governance layers, and
the dynamics between the AI governance actors. The model also offers a starting
point for organizational decision-makers to consider the governance components
needed to ensure social acceptability, mitigate risks, and realize the
potential of AI.
