How Governments Worldwide Are Trying to Regulate Artificial Intelligence

Sat Feb 07 2026
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Key points

  • EU leads with strict risk-based AI law
  • US and China follow contrasting models
  • Global South seeks inclusive AI governance

ISLAMABAD: Governments around the world are moving to regulate artificial intelligence, as the rapid expansion of AI systems raises concerns about safety, privacy, and economic disruption. From facial recognition to generative chatbots, policymakers are grappling with how to set rules for a technology that evolves faster than traditional legislation.

According to the Organisation for Economic Co-operation and Development (OECD), more than 60 countries have introduced or proposed national AI strategies, many of which include regulatory or governance frameworks aimed at managing risks while encouraging innovation. The OECD has warned that the absence of shared standards could lead to fragmented rules, creating uncertainty for both governments and businesses.

The European Union has taken the most comprehensive approach so far through its AI Act, which classifies AI systems based on risk levels and imposes stricter requirements on applications used in areas such as law enforcement, healthcare, and hiring. In contrast, the United States has largely relied on sector-specific guidance and executive orders, favouring innovation and market-led development over binding federal legislation.

Generative AI

China’s regulatory model focuses on state oversight, particularly of algorithms used in recommendation systems and generative AI. Authorities require companies to ensure that AI outputs align with “social values” and national security priorities, reflecting Beijing’s broader approach to digital governance.

In the Global South, many governments face additional challenges, including limited technical capacity and concerns that imported regulations may not reflect local realities. International organisations, including the United Nations, have called for inclusive global cooperation to prevent AI governance from becoming dominated by wealthy countries and major technology firms.

As artificial intelligence becomes embedded in everyday life, the debate over regulation is shifting from whether rules are needed to how they can be designed without stifling innovation. For policymakers worldwide, the challenge remains finding a balance between protecting citizens and allowing AI to deliver economic and social benefits.

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