The Future of AI Governance: Navigating Challenges Ahead

As the rapid development of artificial intelligence unfolds, those tasked with managing its risks often find themselves in a relentless race to stay one step ahead. With increasing reports of AI mishaps in the media and a barrage of consumer AI tools flooding the market, trust in AI technologies has diminished. A recent Gallup/Bentley University survey revealed that a mere 23% of American consumers believe that companies are handling AI responsibly.

In an evolving landscape riddled with challenges, we gathered insights from industry leaders on what the future holds for AI governance as we approach 2025.

A Regulatory Landscape in Flux

The year 2025 is set to intensify compliance with emerging regulations, particularly as the EU AI Act looms on the horizon, potentially imposing fines of up to €35 million for noncompliance. Michael Brent, Director of Responsible AI at Boston Consulting Group, emphasizes that the EU will serve as a critical test case for global AI governance.

Alyssa Lefaivre Škopac, Director of AI Trust and Safety at the Alberta Machine Intelligence Institute, opines that an increase in “soft law” mechanisms—such as standards, certifications, and collaboration between national institutions—will emerge to fill regulatory gaps. However, she acknowledges that without harmonization, the landscape will remain fragmented.

In the United States, Alexandra Robinson of Steampunk Inc. predicts that while states will focus on consumer-centric AI legislation, Congress will prioritize reducing barriers to innovation, echoing ongoing consumer privacy debates.

Fion Lee-Madan, co-founder of Fairly AI, posits that obtaining ISO/IEC 42001 certification will become paramount in 2025, as organizations shift from theoretical concepts of AI to tangible security and compliance needs.

Emergence of Agentic AI

While 2024 was dominated by generative AI discussions, 2025 is poised to spotlight “agentic AI,” systems capable of autonomously executing tasks based on user-defined goals. Apoorva Kumar, CEO of Inspeq AI, anticipates significant focus on governance centered around these intelligent agents, raising critical challenges around autonomy and accountability.

Experts warn that with the rise of agentic AI, companies will need to navigate discussions around workforce impact and what happens when AI begins to replace human roles at scale.

Transitioning from Ethics to Operational Standards

AI governance is evolving from being merely an ethical consideration to an integral part of business strategy. As Lefaivre Škopac states, companies are increasingly embedding responsible AI principles into their core operations, recognizing that governance must involve people and processes alongside technology.

Giovanni Leoni, a Responsible AI Manager at Accenture, describes this shift as a change management journey, while Alice Thwaite from Omnicom Media Group UK emphasizes the need for distinctive frameworks for governance, ethics, and compliance—indicating a maturing understanding of the issue.

Kumar adds that the rise of platforms focused on Responsible AI Operations (RAIops) offers companies the tools necessary to audit and monitor their AI applications effectively.

Environmental Considerations Take Center Stage

Experts are also highlighting the necessity of environmental stewardship in AI governance. Jose Belo of the International Association of Privacy Professionals (IAPP) underscores that reducing AI’s environmental footprint is a shared responsibility, emphasizing energy-efficient design and transparent carbon reporting.

Organizations and providers alike must adopt more sustainable practices to mitigate AI’s potential environmental impact, from cloud usage to ethical decommissioning.

Key Drivers for Advancing AI Governance

What will propel progress in AI governance? Insights from industry leaders suggest several interconnected factors:

• Proactive Corporate Involvement: Michael Brent asserts that robust corporate investment in AI governance will be pivotal, particularly through dedicated Responsible AI teams.

• Real-World Consequences: Kumar points out that the fallout from trust and reputation losses has already severely impacted companies like DPD and Google Gemini, urging others to act preemptively.

• Purchasing Power: Lefaivre Škopac stresses that organizations can use their purchasing influence to demand elevated standards from AI providers, fostering transparency and accountability.

• Enhanced AI Literacy: As AI technologies spread, Belo emphasizes the need for comprehensive education to build understanding across various industries.

Each perspective underlines that meaningful progress in AI governance requires collaborative efforts across multiple fronts—strategic investment, stringent accountability, and a focus on education.

The Road Ahead: Embracing Complexity

In conclusion, navigating the path to enhanced AI governance won’t be a simple endeavor. Optimistic projections about AI compliance investments are met with the complexities of practical frameworks and operational challenges. As organizations work through the fragmented regulatory landscape, the emergence of trends like agentic AI will introduce additional risks that responsible AI practitioners must navigate.

Ultimately, no single entity can tackle these challenges independently. Robinson articulates a crucial mantra for 2025: transitioning from merely complying with AI regulations to engaging effectively with stakeholders. “It’s about empowering technologists to create secure, reliable, and responsible AI,” she emphasizes, acknowledging the need for practical tools rather than complex assessments.

As we move forward into the ever-evolving landscape of AI governance, a clearer, more actionable framework is beginning to emerge—one that acknowledges the multifaceted challenges and opportunities that lie ahead.

The AI Buzz Hub team is excited to see where these breakthroughs take us. Want to stay in the loop on all things AI? Subscribe to our newsletter or share this article with your fellow enthusiasts.