AI governance is no longer theoretical. Recent cases involving Air Canada's chatbot and iTutorGroup's AI recruiting system show that organizations, not AI tools, are legally accountable for AI-generated outcomes. This article explores what these landmark cases reveal about AI liability, governance failures, and the risks of deploying AI without human oversight. Learn why monitoring, data quality, human review, and cross-functional decision-making are essential for responsible AI implementation. Discover four practical governance patterns that help organizations reduce risk, improve accountability, and build AI systems that are both innovative and defensible.