Emerging AI Regulatory Ecosystems: Implications for Businesses and Regulators

Different AI regulatory regimes are currently emerging across Europe, the United States, China, and elsewhere. But what do these new regulatory regimes mean for companies and their adoption of self-regulatory and compliance-based tools and practices? This article outlines how and where AI regulations emerge and how these, in some cases, seem to be on divergent paths. Second, it discusses what this means for businesses and their global operations. Third, it comments on a way forward in the growing complexities of AI use and regulation, as it exists between soft law practices and emerging hard law measures.

By Danni Yu & Benjamin Cedric Larsen^[1]

Different AI regulatory regimes are currently emerging across Europe, the United States, China, and elsewhere. But what do these new regulatory regimes mean for companies and their adoption of self-regulatory and compliance-based tools and practices? This article outlines how and where AI regulations emerge and how these, in some cases, seem to be on divergent paths. Second, it discusses what this means for businesses and their global operations. Third, it comments on a way forward in the growing complexities of AI use and regulation, as it exists between soft law practices and emerging hard law measures.

I. AI GOVERNANCE CONCEPTUALIZED

Two distinct but connected forms of AI governance are currently emerging. One is soft law governance, which functions as self-regulation based on non-legislative policy instruments. Th