Regulators Race to Define AI’s Future Amid Global Tech Tug-of-War

The global artificial intelligence (AI) regulatory landscape is evolving rapidly, with different regions adopting distinct strategies to govern AI development and deployment. As AI becomes more integrated into critical sectors like finance, telecommunications, and government operations, regulatory frameworks are being refined to balance innovation with risk management. A 2025 strategic intelligence report from ResearchAndMarkets.com highlights that while the European Union (EU) leads in shaping AI regulation, the United States and China also play pivotal roles in defining the global trajectory of AI governance.

The EU continues to cement its position as a regulatory innovator with its AI Act, which is designed to implement a risk-based approach to AI oversight. A key component of the Act is the General-Purpose AI (GPAI) Code of Practice, which is being finalized after multiple iterations informed by stakeholder feedback. The Code emphasizes alignment with EU values, proportionality, and future-proofing. The Act is set to take full effect by August 2025, with the final version of the Code expected by May 2025. This regulatory momentum has positioned the EU as a model for global AI governance, potentially influencing the regulatory approaches of other regions.

In the United States, the regulatory landscape has shifted significantly following the revocation of the Biden administration’s AI Executive Order. On January 20, 2025, President Donald Trump rescinded the previous administration’s directive, which had prioritized AI safety and ethical development. The new Trump administration has instead focused on maintaining and enhancing American leadership in AI, with the White House issuing a new executive order aimed at removing barriers to AI innovation and bolstering national security. The new administration has also announced the development of an AI Action Plan, led by figures with close ties to the tech industry, raising questions about potential conflicts of interest. Additionally, the US Copyright Office is addressing the legal status of AI-generated content, affirming that human authorship remains central to copyrightability.

Across the globe, countries are also aligning with international efforts to ensure responsible AI use. The UK and Qatar launched a joint AI research initiative in December 2024, funded by the UK’s Gulf Strategy Fund. The collaboration, led by Queen Mary University of London and Hamad bin Khalifa University, aims to enhance AI governance through research on ethical frameworks, policy development, and cross-border collaboration. In Asia, Singapore and Hong Kong have released detailed guidelines for managing AI-related risks in the financial sector, emphasizing the need for transparency, human oversight, and robust cybersecurity measures. These regional efforts reflect a broader global consensus on the need to regulate AI in a way that protects public interests while fostering innovation.

In the public sector, states like Virginia are exploring the use of agentic AI to streamline regulatory processes. Governor Glenn Youngkin issued an executive order in January 2025 authorizing the use of agentic AI tools to review and reduce regulatory burdens. The initiative is part of a broader efficiency-focused agenda that has already led to a 26.8% reduction in regulatory requirements since 2022. By employing AI to identify redundancies and contradictions in existing regulations, Virginia aims to modernize its governance framework while maintaining transparency and accountability in the process.

The evolving AI regulatory environment is not without its challenges. The International AI Safety Report, published by the UK’s Department for Science, Innovation and Technology in January 2025, underscores the need for a unified scientific understanding of AI risks. The report, which was developed with input from over 100 international experts, highlights the necessity of reliable design, risk assessment, and continued research into AI capabilities. The findings are expected to inform policy discussions at the AI Action Summit in Paris and will be critical for businesses seeking to navigate the complexities of AI governance.

In summary, the global AI regulatory landscape is marked by a dynamic interplay of innovation, risk management, and geopolitical strategy. While the EU continues to lead in shaping the regulatory agenda, the US and China are also playing influential roles in defining the direction of AI governance. As AI technologies become increasingly embedded in public and private sectors, the need for balanced, evidence-based regulations is more pressing than ever. Governments, businesses, and international bodies must collaborate to ensure that AI development aligns with societal values and global security interests.