Global governance

Competing approaches to AI oversight

How regions differ in governing AI:

Priorities, rules, and innovation paths

Innovation first

Approach: Market-led innovation, light-touch regulation

Strengths: Dominates foundation models (OpenAI, Google, Microsoft)

Strategy: Rapid commercialisation with growing safety scrutiny

Regulation first

Approach: Comprehensive horizontal frameworks (EU AI Act)

Strengths: Setting global ethical standards, transparency focus

Strategy: High compliance burden, global regulatory influence

State-aligned innovation

Approach: Vertical governance, sovereign capability focus

Strengths: Rapid scaling of multilingual, state-aligned models

Strategy: Social harmony and collective benefit optimisation

Beyond the 'Big Three'

Asia & Middle East: Sovereign AI programs reducing foreign dependency

Africa: Local-language AI for social impact and regional challenges

The open source advantage

Open-source models like LLaMA, Mistral, and Falcon represent a significant shift in AI accessibility that deserves attention.

We're seeing capable teams build production-ready AI systems without the traditional barriers to entry - a development that's reshaping competitive dynamics across industries.

The practical implications are compelling: dramatically reduced costs, faster time-to-market, and freedom from vendor dependencies. Though challenges exist - GPU requirements remain substantial and reproducibility can prove complex - these are increasingly manageable trade-offs for most organisations.

What's particularly interesting is how regulation is lagging market reality. While policymakers debate frameworks for open-source AI, adoption is accelerating. Organisations that engage thoughtfully with these models now will be better positioned as the landscape matures.

Our view: open-source AI has crossed from experimental to strategic. The question is no longer if these models belong in your technology stack, but how to integrate them effectively while maintaining appropriate governance. Organisations still exclusively relying on proprietary APIs may find themselves at a growing disadvantage as the ecosystem evolves.

Key advantages of open models

  • Reduced duplication
  • Fosters best practices
  • Ecosystem growth
  • Rapid submarket emergence (e.g. video generation, robotics)

Strategic and geopolitical context

  • Centralised governance enables swift implementation
  • U.S. faces cultural and structural hurdles
  • Potential regulation of openness to avoid 'disorderly competition'

Challenges and global impact

  • Hardware reliance: Domestic chips (e.g., Huawei) vs. Western infrastructure
  • Uncertainty in replicating physical infrastructure success digitally
  • Disruption in tech markets
  • Academic/scientific influence shift
  • Regulatory challenges

Ethical AI: whose values?

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