Who regulates Artificial Intelligence? Big tech and the rise of shadow governance
Who regulates Artificial Intelligence? Big tech and the rise of shadow governance

Summary/Abstract: Artificial intelligence is increasingly embedded in people's choices and interactions, evolving at a pace that tests existing regulatory frameworks and raises questions about their capacity to address the emerging challenges. Against this backdrop, the European Union has undertaken significant efforts to regulate artificial intelligence, particularly through the AI Act, which has attracted substantial engagement from major technology companies. These companies have expressed concerns about whether the European Union's regulatory framework may affect innovation and could become a burden on technological development. They argue that these regulations are static and could quickly become outdated by their very nature. As governments attempt to implement the AI Act and struggle to find the necessary resources, AI companies are increasingly performing regulatory functions, creating a form of private “shadow governance”. This article examines the extent to which major technology companies influence the governance ecosystem of AI and the distribution of regulatory power. The article adopts a qualitative research approach based on the analysis of publicly available documents, corporate AI governance frameworks, and regulatory debates concerning general-purpose AI. The analysis suggests that AI companies increasingly exercise regulatory influence through private governance mechanisms that operate alongside formal legal frameworks. By examining how AI companies are increasingly shaping rules and standards in the digital ecosystem, the paper contributes to the literature on AI governance and highlights the implications of private regulatory power for accountability and the distribution of authority.

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