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Why AI governance Is critical for sustainable, responsible software development

By Leonard Tan, Regional Director (Singapore, Malaysia, Brunei, Greater China Region), OutSystems | Monday, May 26, 2025, 4:20 PM Asia/Singapore

Why AI governance Is critical for sustainable, responsible software development

Explore how structured oversight and strategic frameworks can help organizations harness generative AI technology benefits while minimizing SDLC technical debt.

One area where generative AI (GenAI) adoption has accelerated dramatically is software development, where tools such as code generators and agents are transforming how engineers work.

However, this is not without challenges. While AI-powered coding tools introduce efficiencies, they can also create long-term risks that many businesses are only beginning to experience. Without proper security and governance guardrails, AI-generated code is often unpredictable, inconsistent, and difficult to maintain. This can lead to the accumulation of inefficient, unstructured code that hinders future development and racks up costs that are referred to as “technical debt”.

Therefore, AI adoption gains momentum, AI governance must not be left lagging behind, as technical debt . puts organizations at risk of compounding the very inefficiencies they set out to eliminate.

Why Gen-AI software development can fall short
While AI-powered coding assistants accelerate tasks, the output often comes with hidden costs, primarily around maintainability. When the entire software development cycle is not properly managed, GenAI code can lack full-lifecycle oversight, resulting in code inconsistencies and governance gaps that worsen over time.

One key area where AI-generated code falls short is quality. Unlike human-written code, AI-generated outputs can be verbose and tough to decipher. Eventually, this can give rise to “orphaned code” (segments no one fully understands or knows how to update), making future development more expensive and time-consuming.

Another challenge is fragmentation. Many businesses typically adopt AI tools targeted at different stages of the software development lifecycle (SDLC) — for example, using one for code generation and another for deployment. This patchwork approach, however, creates silos and complexity, rather than streamlining workflows. Without a thorough framework tying and governing everything together, organizations using GenAI for software development may be exposed to compliance gaps, security risks, and operational inefficiencies, making long-term application maintenance a costly endeavor.

The governance-first approach to software development
Instead of treating AI as merely a tool to accelerate coding, organizations need to take a governance-first approach: one that ensures AI-generated code is secure, explainable, and sustainable from the start.

Here is the general framework:

  1. The AI adoption strategy for software development must have security, compliance, and maintainability engineered in from the start. Security must be a priority. AI-generated code must be continuously validated, monitored, and assessed to prevent compliance gaps before they become liabilities.
  2. Developers must have visibility into AI’s role in development.  This ensures effective refinement and governance of its usage.
  3. Ensure that AI can be scaled effectively, by being embedded throughout the entire software development lifecycle. This calls for structured workflows that not only circumvent redundant or excessive code, but also empower continuous improvement and rapid iteration with advanced capabilities.
  4. Adopting a structured development environment that integrate security, compliance, and automation ensures that governance is embedded at every stage, from build to development. AI can drive real, long-term innovation in software development, but only if governance remains at the core of its adoption.

AI adoption within a structured environment cannot be an afterthought. Without a structured approach, organizations risk not just inefficiencies, but long-term complexity that becomes costly to unwind.

Organizations that treat AI governance as a priority, rather than a challenge to work around, will be the ones that can innovate sustainably without the burden of technical debt.

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