The integration of artificial intelligence (AI) with cloud computing is transforming enterprises through unprecedented automation and scalability. However, this convergence introduces significant risks—including algorithmic bias, opacity, and security vulnerabilities—that outpace traditional IT governance. This chapter argues that a new, proactive governance paradigm is essential for responsible AI deployment. It presents a comprehensive framework built on pillars of fairness, transparency, and accountability, and details how Cloud-native technologies like Policy as Code can automate governance within MLOps pipelines. A step- by- step approach for operationalizing this framework is provided. The chapter concludes with a critical analysis of the broad social, ethical, practical, and managerial implications, positioning robust governance not as a barrier, but as a critical enabler of sustainable and trustworthy innovation in the Cloud-automated enterprise.