Governing AI across borders: corporate power, state sovereignty and global regulation

What is it about?

This paper examines the evolving role of private corporations and non-state actors in shaping global algorithmic governance and explores mechanisms to balance their quasi-sovereign influence with state sovereignty and public accountability. As AI technologies transcend national boundaries, corporations like Google, Meta, and Tencent have emerged as dominant players, influencing norms, regulations, and technical standards across jurisdictions. Their cross-border operations often challenge state authority, raise accountability concerns, and exacerbate global power asymmetries. Through a comparative analysis of corporate-led AI frameworks and state-centric governance models, this study identifies key tensions between private-sector influence, public accountability, and national sovereignty. The paper proposes a multi-stakeholder governance model that integrates corporate accountability, state sovereignty, and participatory oversight to foster equitable and transparent algorithmic governance. It emphasizes the need for enforceable compliance mechanisms, algorithmic audits, and transnational regulatory coordination to prevent regulatory arbitrage. Recognizing emerging challenges, it also considers the governance implications of decentralized AI, autonomous algorithmic systems, and Quantum AI. The findings provide actionable insights for policymakers, technologists, and civil society stakeholders navigating the complexities of corporate power in AI governance.

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