Meaning ● Federated AI Governance, within the SMB sphere, signifies a decentralized yet coordinated framework for managing artificial intelligence systems across various business functions. This approach ensures that AI initiatives, particularly those driving automation and growth, adhere to ethical standards, regulatory requirements, and strategic business goals, without centralizing all AI decision-making. ● Consider a small manufacturing business, for instance, where AI is used for predictive maintenance, supply chain optimization, and customer service automation; federated governance allows each department to tailor AI applications to their specific needs, while still operating under a common set of principles and guidelines defined at the organizational level.