The Second Wave of AI Governance: The Risks of Pervasive Transcription Tools | IAPP

The Second Wave of AI Governance: The Risks of Pervasive Transcription Tools | IAPP

By Noga Rosenthal
Publication Date: 2026-03-04 00:00:00

A manager starts a video call with a low-performing employee to give him difficult feedback. After 30 seconds, a notification will appear: “Otter.ai has joined the meeting.” The employee did not ask for permission. Every word of this conversation is now transcribed, processed and stored. Or, posing an even greater risk to the company and the manager, the employee secretly records the conversation via an AI transcription tool on their cell phone.

If this scenario sounds familiar, you are not alone. And if not, it’s probably just a matter of time.

We have entered the second wave of AI governance

Most organizations have completed the first phase of AI governance: establishing cross-functional AI governance committees, developing AI governance policies around the use of new AI tools, and establishing guidelines for what information employees can enter into AI tools. Ideally, employees already know that they can’t insert an Excel spreadsheet containing a company-wide list of…