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Prompting and AI Skills8 min

AI Governance and Regulation

AI governance is the question of who makes decisions about how AI is built and used, and on what principles. It is one of the most important policy questions of your generation.

Why governance matters

AI systems are making decisions that affect people lives — in employment, finance, healthcare, justice, and the information environment. The question of who sets the rules for those systems, and with what accountability, is fundamentally a question of democratic governance.

The current landscape

European Union. The EU AI Act (2024) creates risk-based regulation — stricter requirements for higher-risk applications, banning some uses entirely (like social credit scoring). It is the most comprehensive AI regulation in the world.

United States. A patchwork of executive orders and sector-specific rules, with no comprehensive federal AI law as of 2026. States are beginning to legislate independently.

New Zealand and Australia. Both have frameworks (Algorithm Charter, AI Ethics Framework) but not comprehensive legislation yet. Both are watching the EU approach closely.

Key governance questions

  • What AI applications should be prohibited entirely?
  • What transparency do people have a right to when AI affects them?
  • How should the economic benefits of AI be distributed?
  • How do small nations maintain sovereignty over technology developed by large ones?

Why it matters to you

The governance frameworks being developed now will shape how AI affects society for decades. Your generation will live with those consequences — and will have the opportunity to reshape them through political participation.

AI governance is too important to be left to technologists and corporations alone. It requires the same democratic engagement as any other major public policy question — and that requires an informed public.

Check your understanding

3 questions, 70% to pass
1. Which is the most comprehensive AI regulation in the world so far?
2. What does risk-based regulation mean?
3. Where do New Zealand and Australia currently stand on AI regulation?