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What Does the Federal AI Framework Recommend for Businesses Adopting AI?

June 26, 2026

Ellie Shaw

Ellie Shaw

Ellie Shaw is the Director of Marketing at Facet and the author of Cyber Treats, Facet's biweekly newsletter featuring topics like IT news, cybersecurity updates, compliance advice, and anything tech. She has been a member of the Facet team full-time since 2016 and enjoys finding new ways to share resources and information about cybersecurity with others.

The federal government has a published blueprint for adopting AI safely, and the structure is refreshingly clear. The NIST AI Risk Management Framework organizes responsible AI adoption around four jobs: govern it, map where it lives, measure how it performs, and manage the risks over time. The framework tells you what good looks like. Doing all four well, across a real business with real data, is the part that takes serious work.

At a glance: The NIST AI Risk Management Framework is the leading U.S. guidance for adopting AI responsibly, built around four functions: Govern, Map, Measure, and Manage. NIST guidance is voluntary, but enterprise buyers, cyber insurers, and regulators increasingly treat alignment with it as the baseline expectation. A 2026 Compliance Week survey found that 83% of organizations use AI tools while only 25% have a strong governance framework around that use. Building and maintaining AI governance and security is an ongoing program, not a one-time setup, and it spans your data, your tools, your policies, and your people. Facet Technologies delivers this same structure as a managed service through its SAFE approach, so businesses get enterprise-grade AI security without building the capability themselves.

NIST is the National Institute of Standards and Technology, a U.S. Department of Commerce agency that writes the technical standards much of American business already runs on, including the cybersecurity framework many companies use today. When NIST publishes guidance on AI, it carries weight.

What Is the NIST AI Risk Management Framework?

The NIST AI Risk Management Framework, often shortened to the AI RMF, is a voluntary set of guidelines that helps any organization identify, assess, and manage the risks that come with using AI. NIST released version 1.0 in January 2023 and has continued to expand it since, including a profile specifically for generative AI tools like ChatGPT and Microsoft Copilot.

The framework is built to be flexible. It does not hand you a rigid list of rules to pass or fail. Instead, it gives you four functions to work through, and you apply them at whatever depth matches your business. A 25-person manufacturer in Central Illinois follows the same four functions as a national bank, just scaled to fit the size of the risk.

Flexible does not mean easy. Working through all four functions means inventorying every place AI touches your data, locking down file permissions, writing and enforcing policy, vetting tools, and monitoring it all as your usage grows and the tools change month to month. Adopting the framework is an ongoing program, not a one-time project you finish and file away. Large enterprises staff entire teams for exactly this work.

What Are the Four Functions of the NIST AI Framework?

The NIST AI framework is built on four functions that work together: Govern, Map, Measure, and Manage. Each one answers a different question about how AI runs inside your business.

Govern is the foundation. It sets the culture, the policies, and the clear ownership for how AI gets used. Govern is the cross-cutting function, which means it runs through everything else rather than sitting as a separate step. In plain terms, govern answers: who decides what AI we use, and what are the rules?

Map is about knowing where AI actually lives in your operation. That includes the tools your team chose on their own, often without telling anyone. Map answers: where is AI being used, and what could go wrong with each use?

Measure is how you check that AI is doing what you expect. It covers testing, watching for errors, and keeping an eye on whether a tool drifts off course over time. Measure answers: is this working the way we think it is?

Manage is the response. It covers prioritizing the real risks, putting controls in place, and having a plan for when something goes sideways. Manage answers: what do we do about the risks we found?

You do not have to run these in strict order, and most businesses cycle through them again and again as their AI use grows. Govern comes first because it sets the rules. After that, the work loops.

Why Should a Central Illinois Business Care About a Voluntary Framework?

The NIST AI framework is voluntary, which means no law forces you to follow it. So why bother? Because the people you do business with are starting to expect it.

Three pressures are converging. Enterprise customers now build AI governance questions into the security questionnaires they send vendors, so a business without a documented approach can face longer sales cycles and extra due diligence. Cyber insurance underwriters are writing AI-specific terms into policies, and showing a structured approach helps maintain your standing at renewal. And regulators increasingly point to the NIST framework as the reference point for what responsible AI looks like.

The gap is striking. A 2026 Compliance Week survey found that 83% of organizations are already using AI tools, but only 25% have a strong governance framework around that use. Most businesses are already exposed; few have built the structure to manage it.

For a business owner, the takeaway is simple. Following a recognized framework is how you show a customer, an insurer, or an auditor that your AI use is deliberate rather than accidental. It is the difference between “our team uses some AI tools” and “here is how we govern AI.” This is the same principle behind zero trust security: structure and verification beat assumption.

How Does This Connect to Shadow AI?

Shadow AI is the use of AI tools by employees without company approval or oversight. It is the single most common gap the NIST framework helps you close, and it maps directly to the Govern and Map functions.

Here is how it happens. Someone pastes customer data into a free chatbot to draft emails faster. Someone else uploads a spreadsheet to summarize it. None of it is malicious, and most of it even improves productivity, but none of it is visible. You cannot protect data you do not know is leaving the building.

That is what the Map function is for: knowing where AI is actually being used before you can secure it. A clear acceptable-use policy is part of the answer, since giving people approved tools is what stops them from reaching for risky ones. The same dynamic drives shadow IT risk more broadly, and the fix is the same: visibility first, then guardrails.

There is a second half to the Map problem that catches even careful businesses off guard. A tool like Microsoft Copilot does not browse the way a person does. It searches every file an employee’s account can reach, including places that account has never actually opened. For decades, sensitive files stayed safe partly because nobody knew where to look. AI erases that protection in seconds. The 2025 Concentric AI Data Risk Report found that 16% of business-critical files are overshared across the average organization, more than 800,000 files per company. Facet’s cybersecurity for AI readiness work closes that gap by tightening file access and permissions, so AI enables your team without exposing your data.

What Makes Facet’s Approach Different?

Most of the AI conversation right now is about speed. Adopt faster, automate more, get ahead. That part matters, and we believe in it. But speed without security is how companies end up explaining a data leak to their biggest customer. Facet Technologies built its approach the other way around: secure first, then fast.

We call our managed approach to AI adoption the Facet SAFE approach. We run the govern, map, measure, and manage work for you, sized for a company that does not have a dedicated risk department and does not want to build one. You get the outcome NIST describes without assigning the project to someone on your staff.

That security focus is not a bolt-on. Facet Technologies is a managed IT and cybersecurity provider first, which means we look at every AI tool the way we look at every other piece of technology touching your data: what does it access, where does that data go, and who is watching it. A lot of providers have moved into AI enablement recently. Far fewer come at it from a security-first foundation, with a 24/7 Security Operations Center and layered protection already in place behind the work. That foundation is the difference between someone telling you what the framework says and someone actually implementing it across your environment.

The economics tend to favor bringing in a partner, too. A single overshared dataset reaching the wrong AI tool can undo far more value than a year of managed security costs, and building the capability internally pulls leadership and IT off revenue work for months. A managed engagement turns an open-ended internal project into a predictable monthly cost, with people who do this every day accountable for the outcome.

We meet businesses at two points. The AI Fluent Leaders webinar series, hosted by Brian Ford and Ellie Shaw, is our free education on-ramp. It helps leaders understand AI well enough to make good decisions, with no cost and no pitch. When you are ready to actually secure and govern AI across your business, the SAFE engagement is where we take that off your plate. The AI readiness assessment bridges the two: it scores your business across six areas, from strategy to security, and gives you a clear picture of where you stand and what implementing this would involve, before you commit to anything.

What Should a Business Do First?

A few early moves help you get oriented, and they cost nothing but attention. Name one person as the owner of AI decisions, even if that is the owner, so the topic has a home. Ask your team, plainly and without blame, which AI tools they are already using and for what. Write down a short ground rule everyone can follow today: which tools are approved, and what kinds of data should never go into a public AI tool. Those three moves give you a rough map of where you stand.

What they do not do is finish the job. That early map almost always surfaces more than expected, like the overshared files mentioned earlier, and closing those gaps is where the real work begins: tightening permissions across your environment, vetting and configuring tools, building enforceable policy, and monitoring it all as your AI use grows. This is genuine data governance, the kind of detailed, environment-wide work that specialized teams handle full time. Getting it right across an entire business is a substantial, ongoing engagement, not a weekend project.

That is the honest dividing line. The orientation steps you can take yourself this week. The full build is where most businesses bring in a partner, because doing it properly the first time is faster, safer, and less expensive than discovering the gaps after something has already gone wrong. Facet’s AI readiness assessment is the simplest way to see both at once: where you stand today, and what the full engagement would actually involve.

FAQ

What is the NIST AI Risk Management Framework?

The NIST AI Risk Management Framework is voluntary federal guidance that helps organizations identify, assess, and manage the risks of using AI. It is organized around four functions: Govern, Map, Measure, and Manage. NIST released it in January 2023 and continues to expand it with profiles for specific AI types. It is voluntary, but enterprise customers, insurers, and regulators increasingly treat alignment with it as a baseline expectation.

What are the four functions of the NIST AI framework?

The four functions are Govern, Map, Measure, and Manage. Govern sets the policies and ownership for AI use. Map identifies where AI is being used and what could go wrong. Measure tests how AI performs over time. Manage prioritizes risks and puts controls in place to respond to them.

What is shadow AI and why does it matter?

Shadow AI is the use of AI tools by employees without company approval or oversight. It matters because it moves company data into tools no one is monitoring, which creates security and privacy exposure. The NIST framework addresses it directly through the Govern and Map functions, which call for visibility and clear policy.

Can a small business actually use the NIST AI framework?

Yes. The framework scales to organizations of any size, and a small business follows the same four functions as a large enterprise. You can start on your own by naming an AI owner, inventorying which tools your team uses, and setting a basic acceptable-use policy. The heavier work of securing and governing AI across an entire environment is where many small and mid-sized businesses bring in a security partner.

How does Facet Technologies help with AI security?

Facet Technologies helps Central Illinois businesses through two doors: the free AI Fluent Leaders webinar series for learning, and the managed SAFE engagement for securing and governing AI across your business. As a managed IT and cybersecurity provider first, Facet runs the implementation so your team does not have to build the capability internally.

Ready to Adopt AI Without Building the Capability Yourself?

You do not have to choose between moving fast and staying secure, and you do not have to build the whole program in-house to get there. The fastest path is to see where you stand, then let a team that does this every day handle the rest. Start with Facet’s AI readiness assessment for a clear picture, or reach out to talk through what securing AI across your business would look like.

Call Facet Technologies at (309) 689-3900 or visit facettech.com/contact-us to talk through what safe, practical AI adoption looks like for your business in Peoria and across Central Illinois.

Ellie Shaw is the Director of Marketing at Facet and the author of Cyber Treats, Facet's biweekly newsletter featuring topics like IT news, cybersecurity updates, compliance advice, and anything tech. She has been a member of the Facet team full-time since 2016 and enjoys finding new ways to share resources and information about cybersecurity with others.

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