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AI Governance Institute

Practical Governance for Enterprise AI

Data Governance
DGC · Data GovernanceDGC-006Medium effortAgent-relevant

AI-Generated Code and Open-Source License Compliance

Establish controls to identify, track, and manage open-source license obligations and supply chain risks introduced by AI-generated code before it is committed to production systems.

Objective

Prevent AI-assisted development workflows from inadvertently introducing open-source license violations, copyleft obligations, or supply chain risks into production codebases.

Maturity Levels

1

Initial

AI-generated code is not reviewed for license implications; no policy covers its use in production.

2

Developing

A policy exists stating developers should not commit AI-generated code with license concerns, but enforcement is manual and inconsistent.

3

Defined

AI-generated code commits are scanned for license indicators using automated tooling; a review process applies to flagged code before merge.

4

Managed

License scanning results are tracked by project; developers are trained on common AI code generation license risks; scan results feed into the software composition analysis (SCA) workflow.

5

Optimizing

AI-generated code is labeled at commit time; license obligations are tracked from generation through production; legal review is automatically triggered for high-risk license detections.

Evidence Requirements

What an auditor or assessor would expect to see for this control.

  • AI-generated code policy document covering permissible use, review requirements, and license handling
  • SCA scan configuration showing AI-generated code is included in automated license scanning
  • Commit convention or PR template requiring AI assistance disclosure
  • Training records for development teams on AI code generation license risks
  • Legal review records for flagged code segments

Implementation Notes

Key steps

  • Establish a policy that addresses AI-generated code specifically: who may use AI coding tools, what review is required before committing AI output, and how to handle uncertainty about code provenance.
  • Integrate AI-generated code into your existing software composition analysis (SCA) workflow — if you scan for open-source licenses in production, AI-generated code should go through the same scan.
  • Require developers to flag AI-assisted commits (e.g. via commit message convention or PR template); this creates an audit trail for license review.
  • Train development teams on the specific license risks in AI-generated code: models may produce code with training data from GPL, LGPL, or other copyleft repositories.
  • Define a legal review trigger: code segments above a defined length or with license scan matches should require legal sign-off before production merge.

Example Implementation

B2B SaaS company with 40-person engineering team actively using AI coding assistants

AI-Generated Code Policy — Engineering Handbook §7.3

All code generated or substantially assisted by AI coding tools (GitHub Copilot, Claude, ChatGPT, Cursor, etc.) must:

  1. Be flagged in the PR description using the tag [AI-assisted]
  2. Pass the standard SCA scan before merge — AI-generated code is not exempt
  3. If the scan flags a potential GPL or LGPL match on any segment >10 lines, require sign-off from Legal before merge
  4. Not include verbatim copied blocks >25 lines without a comment identifying the source and verifying license

Unacceptable: Committing AI output without review, using AI tools to generate code in security-sensitive modules without additional review, or omitting the [AI-assisted] tag to avoid review.

Resources: License risk guide in Engineering Wiki › AI Tooling › License Compliance

Control Details

Control ID
DGC-006
Typical owner
Legal / Engineering / IP Counsel
Implementation effort
Medium effort
Agent-relevant
Yes

Tags

open sourcelicense complianceAI-generated codesupply chainintellectual property