Page 75 - The Annual AI Governance Report 2025 Steering the Future of AI

The Annual AI Governance Report 2025: Steering the Future of AI

Dive deeper in the Whitepaper “Themes and Trends in AI Governance”:

• 5.1 Global Compute Distribution

2.10 Policy Interoperability and Agile Governance

Policy coherence was another recurring theme. Today, national AI strategies vary widely, from
light-touch frameworks designed to encourage innovation to legally binding regimes like the
EU’s AI Act. Without coordination, these divergences risk creating a patchwork of incompatible
rules that increase compliance costs and weaken governance.

Policy interoperability could involve, for example:

• Aligning definitions, standards, and risk categories so companies don’t face contradictory
requirements.
• Ensuring cross-border data flows and AI systems can function under multiple jurisdictions.
• Creating mechanisms for mutual recognition or coordination of regulatory approaches.

Interoperability was framed as the glue of global governance. As AI systems, data, and models
cross borders seamlessly, governance frameworks must do the same. Interoperability does not
mean identical rules everywhere, but mutual recognition and harmonization that allow systems
to operate across jurisdictions without undermining safety or rights.

Without policy interoperability, global cooperation will falter, and companies will face
incompatible requirements. With it, however, there is potential for a governance framework
that is both global and adaptable, capable of keeping pace with technological change.

Due to the complexity of AI governance, Juha Heikkilä (Adviser for Artificial Intelligence,
European Commission) highlighted the need for follow-up and update mechanisms. He
argued that to build trust, it is crucial to know how effectively recommendations and regulations
are being put into practice. This is necessary for both formal legislation and "softer" governance
approaches.

Dive deeper in the Whitepaper “Themes and Trends in AI Governance”:
• 3.1 Global AI Summits
• 3.2 Track to Diplomacy Initiatives
• 3.3 Regional AI Partnerships
• Annex – Examples of multilateral initiatives [a list of some 40 initiatives]
• Annex – Examples of national initiatives [a list of some 20 initiatives]

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