Challenges in Regulating AI: A Global Perspective

Regulating AI: Challenges and Initiatives

The regulation of Artificial Intelligence (AI) is proving to be a complex and multifaceted challenge, involving a range of global scientific, economic, cultural, political, and civic issues. Effective governance of AI requires extensive international cooperation to establish standards that transcend national borders.

International Initiatives

In recent years, various initiatives aimed at AI regulation have emerged on the international stage. Notable examples include:

  • The AI Action Summit (2025)
  • The G7 Hiroshima AI Process (2023)
  • The United Nations AI for Good Global Summit (2024)
  • The Montreal Declaration on Responsible AI (2018)
  • The Bletchley Park Summit (2023)

These initiatives create a complex regulatory landscape where the goals of one framework may inadvertently conflict with another.

Race for AI Dominance

Leading nations in AI innovation are vying for global dominance. For instance, the United States enacted the National AI Initiative Act in 2020 to bolster its leadership in AI research and development, while encouraging widespread adoption across various sectors. Similarly, China introduced its Next Generation AI Development Plan in 2017, aiming to establish itself as an AI superpower by 2030. The United Kingdom has also launched its National AI Strategy to position itself as a global leader in AI.

However, this race for supremacy often overshadows critical ethical considerations and the development of a universally accepted governance system for AI technologies.

Regulatory Frameworks in Developing Countries

In developing nations, the focus shifts from achieving global dominance to utilizing AI to tackle local challenges. Countries like India, Brazil, and South Africa have established policies aimed at leveraging AI for economic growth, improving public service delivery, and enhancing healthcare systems. For example, India’s National Strategy for Artificial Intelligence emphasizes using AI for social progress and economic development, highlighting a significant north-south divide in national AI strategies.

Fragmented Regulatory Approaches

In advanced economies, although progress is being made in regulating AI, these efforts often reflect a fragmented approach. The European Union is at the forefront with its proposed AI Act, which aims to provide a comprehensive framework for the development and deployment of AI technologies. The Act includes provisions to ban specific AI systems outright and mandates risk management protocols for high-risk AI applications.

However, the AI Act has limitations; it raises questions about how to define and measure biases in AI systems, and it promotes voluntary compliance for lower-risk AI technologies, which remain underdeveloped.

U.S. Regulatory Initiatives

In the United States, several regulatory measures have been proposed to address AI’s potential risks. The Algorithmic Accountability Act seeks to tackle biases and ensure transparency in AI systems, while the Facial Recognition and Biometric Technology Moratorium Act aims to protect individual rights from government surveillance.

Moreover, individual states have begun to establish their own AI regulations. For instance, California’s Algorithmic Accountability Act and Illinois’ updates to existing laws illustrate the complexity of the regulatory landscape, where laws often lack comprehensiveness and clarity on critical issues.

Challenges of Universally Accepted Standards

The absence of universally accepted standards leads to inconsistencies in judicial interpretations on crucial matters like liability, antitrust laws, and intellectual property rights. For instance, differing views between the European Commission and the U.S. Federal Trade Commission on whether AI systems can collude to manipulate markets highlight the urgent need for a coherent regulatory framework.

The debate over whether AI can be recognized as an inventor for patent purposes further complicates the landscape, challenging the traditional notion that only humans can hold such status.

Conclusion: The Need for a Global Framework

To navigate the complexities of AI regulation, establishing an international governance framework is essential. This framework should address the challenges posed by deglobalization and recent geopolitical trends that threaten global integration. AI’s global nature necessitates a unified approach to set norms and standards that ensure fair competition and equitable access to AI technologies.

With projections indicating that AI could contribute up to 14% of global GDP by 2030, a global regulatory framework will be critical in mitigating risks associated with AI, fostering innovation while protecting individual rights and societal values.

More Insights

Responsible AI Workflows for Transforming UX Research

The article discusses how AI can transform UX research by improving efficiency and enabling deeper insights, while emphasizing the importance of human oversight to avoid biases and inaccuracies. It...

Revolutionizing Banking with Agentic AI

Agentic AI is transforming the banking sector by automating complex processes, enhancing customer experiences, and ensuring regulatory compliance. However, it also introduces challenges related to...

AI-Driven Compliance: The Future of Scalable Crypto Infrastructure

The explosive growth of the crypto industry has brought about numerous regulatory challenges, making AI-native compliance systems essential for scalability and operational efficiency. These systems...

ASEAN’s Evolving AI Governance Landscape

The Association of Southeast Asian Nations (ASEAN) is making progress toward AI governance through an innovation-friendly approach, but growing AI-related risks highlight the need for more binding...

EU AI Act vs. US AI Action Plan: A Risk Perspective

Dr. Cari Miller discusses the differences between the EU AI Act and the US AI Action Plan, highlighting that the EU framework is much more risk-aware and imposes binding obligations on high-risk AI...

The Hidden Risks of AI Integration in the Workplace

As organizations rush to adopt AI, many are ignoring the critical risks involved, such as compliance and oversight issues. Without proper governance and human management, AI can quickly become a...

Investing in AI Safety: Capitalizing on the Future of Responsible Innovation

The AI safety collaboration imperative is becoming essential as the artificial intelligence revolution reshapes industries and daily life. Investors are encouraged to capitalize on this opportunity by...

AI Innovations in Modern Policing

Law enforcement agencies are increasingly leveraging artificial intelligence to enhance their operations, particularly in predictive policing. The integration of technology offers immense potential...

Kenya’s Pivotal Role in UN’s Groundbreaking AI Governance Agreement

Kenya has achieved a significant diplomatic success by leading the establishment of two landmark institutions for governing artificial intelligence (AI) at the United Nations. The Independent...