Regulation of Artificial Intelligence: Between the Switch and Innovation - Is Brazil Prepared?

The European AI liability directives – Critique of a half-hearted approach and lessons for the future

Public opinion polls conclude that the American public is in favor of regulating artificial intelligence (“AI”), and many technology companies publicly claim that they would welcome regulation. And yet the United States has struggled to enact federal comprehensive AI regulations beyond a short-lived Executive Order. Why? Part I of this Article explains why regulating AI is so difficult, focusing on six key reasons: AI is a global issue; AI is not one discrete issue; AI is developing at a speed that is unprecedented; lawmakers largely lack the technical expertise effective AI regulation requires; the stakes of getting the regulation wrong are so large that paralysis results; and there is currently high-profile hostility toward federal regulation. Exploring each of those complications helps contextualize the relative lack of U.S. federal action on AI regulation. But a choice to not enact comprehensive federal AI regulation does not mean that AI will not be regulated in the U.S. Rather, as Part II discusses, if the U.S. does not enact federal AI regulation, AI will still be “regulated,” either through corporate self-regulation by AI developers, existing federal and state regulatory structures (namely antitrust, copyright, and privacy), and/or private tort actions. Each of these alternatives to AI regulation has important limitations. Part III concludes by offering some optimism, building the case for why now is an ideal time for AI regulation, notwithstanding the many challenges. There is public support for AI regulation, we can implement lessons learned from existing regulations, and technology companies themselves at least claim to welcome it. It is time to confront the challenges of regulating AI to help ensure innovation, prosperity, and safety.

In the face of Chinese advances in AI in terms of technological prowess and influence, there has been a call for collaboration between the EU and the US to create a foundation for AI governance based on shared democratic beliefs. This paper maps out the EU, US, and Chinese approaches to AI development and regulation as we analyze the capacity of the US and EU to establish international standards for AI regulation through channels such as the TTC. As the EU rolled out a proportionate and risk-based approach to ensure stricter regulation for high-risk AI technologies, it laid the foundation for international rule-shaping in the AI domain. The important question is whether the EU can effectively collaborate with the US in response to China's aggressive AI initiative and, more importantly, lead the transatlantic effort to become the "world-leading region on developing and deploying cutting-edge, ethical and secure AI."

This study examines the relationship between foreign aid utilization and economic growth in Nepal from 2003/04 to 2023/24, grounded in the Two-Gap Model as a theoretical framework. Using time-series data, it assesses whether actual disbursed foreign aid has contributed to the economic performance of Nepal. Although foreign aid has remained a significant source of development financing, its share in the national budget has steadily declined over the study period. Statistical analyses, including Pearson correlation and simple linear regression, reveal a very weak positive relationship (r ≈ 0.039) between aid utilization and economic growth. These findings suggest that foreign aid alone has not consistently driven economic growth in Nepal. This may be due to broader structural conditions such as institutional capacity, governance quality, and policy alignment. The study highlights the need for further research on sectoral impacts, the role of political stability and donor coordination, and the underlying causes of fluctuating growth patterns of the country. Overall, while foreign aid continues to play an important role in development financing, it must be supported by domestic reforms to ensure its effectiveness in promoting sustainable and inclusive economic growth. The significance of this study lies in its focus on actual aid utilization and its policy-oriented insights for improving aid effectiveness in the Nepalese context.

The global-local sustainable development and climate change adaptation policy, and the emerging political discourse on the value of local Adaptation, have positioned the local institutions and their governance space within the strategic enclaves of multilevel governance system. Such shifts have transformed the context for sustainable Nature Based Tourism (NBT) development and adaptation in Nepal in general, and its protected areas, in particular. The emerging institutional adaptation discourse suggests on the need to link tourism development, adaptation and governance within the sustainability concept, and also to recognize the justice and inclusive dimensions of local adaptation. However, sociological investigation of institutional adaptation, particularly at the interface between sustainability, justice and inclusive local adaptation is an undertheorized research topic. This exploratory study examined the sociological process of the institutional adaptation, especially the social resilience and adaptive governance capacities of the NBT institutions, in 7 Village Development Committees of the Mustang district, a popular destination in the Annapurna Conservation Area, Nepal. Using the sphere (a dynamic social space concept) and quality of governance as the analytical framework, the integrative adaptation as the methodological approach and the case study action research method, the study investigated and generated a holistic picture on the state of the social resilience and adaptive governance capacities of the NBT institutions. The findings show institutional social resilience capacities to be contingent on socio-political construction of adaptation knowledge and power. Factors influencing such constructions among NBT institutions include: the site and institutions specific political, economic and environmental dispositions; the associated socio-political processes of knowledge constructions and volition action; and the social relationships and interaction, operating within the spheres and at multiple governance levels. The adaptive governance capacities hinge on the institutional arrangements, the procedural aspects of adaptation governance and the governmentality. These are reflective of the diverse legal frameworks, the interiority perspective of the decision making and governance practices of the NBT institutions. In conclusion, it is argued that effective local adaptation in the Mustang district is contingent on the adaptation and institutional dynamics of the NBT institutions, consisting of the cognitive, subjective, process and procedural aspects of the adaptation knowledge production and its use.

The issue of AI development and application is high on the international agenda now. One of the reasons is its excessive popularity among the public. Numerous international actors are now developing AI regulations. It is both universal and specialized international organisations with global and regional reach. Informal international fora are also active in this area. This process is a complex one and incorporate different factors which are both of objective and subjective character. In effect, AI regulation all the more often becomes a political tool for promoting economic interests of national IT companies or an instrument for secretariats of international organisations to keep a high profile. National AI regulation is often considered as a shield against malign use of AI by Western governments to manipulate domestic processes in other countries and to interfere into internal affairs. There are also different approaches which are practiced by intergovernmental organisations depending on their specialization. While specialized fora strive to build common grounds for the development and use of AI, regional organisations attach broader perspective to AI regulation and tend to politicize it. These various factors are likely to result in a fragmented regulatory field in this area according to national borders or borders of military and political alliances.

Abstract: This book explores the dynamic intersections between global trade, legal governance, and technological innovation, emphasizing how these forces are reshaping the foundations of international law. As the global economy becomes increasingly digitized, legal frameworks must evolve to address challenges posed by data sovereignty, cross-border regulation, artificial intelligence, blockchain, and digital trade. The book provides a forward-looking assessment of legal adaptability, institutional capacity, and normative development, while offering actionable insights for legal scholars, policy-makers, and corporate actors navigating the uncertain terrain of 21st-century globalization. Keywords: international law, global governance, trade law, digital economy, AI regulation, WTO, blockchain, data governance, innovation, regulatory convergence

What contributes to local-level institutional adaptation under climate change? A configurational approach based on evidence from China's Sponge City Program

Recent scholarly attention shows increasing involvement of local low-carbon energy initiatives (LLCEIs) in governance and policy, in particular in relation to innovations regarding low-carbon energy and energy efficiency. The future perspective of active citizenship in the production of locally generated low-carbon energy is largely dependent on the existing institutional and policy frameworks and settings. Subnational governments, in particular, can have a prominent role in this process by engaging in institutional adaptation and policy innovation. The central research question of this paper is: In what ways do local and regional governments innovate in governing to respond to the emergence of LLCEIs? The research question is answered by comparing two case studies: the Dutch regions of Overijssel and Fryslân. We have conceptualized a meta-governing approach of experimentation, characterizing the innovations in governing that emerge when governments respond to the emergence of LLCEIs. We specifically focus on two capacities that subnational governments can use to enhance their governing capacity vis-à-vis LLCEIs and which substantiate the experimental meta-governance mode: institutional adaptation and policy innovation. We then formulated hypotheses that specify the expected policy innovations and institutional adaptations employed vis-à-vis LLCEIs. Data collection involved in-depth interviews and use of secondary data. The results show that a balancing process of authoritative and enabling modes of governing particularly characterized the type of policy innovations that were developed and the institutional adaptations that took place. Both provinces govern LLCEIs at arm’s length and issue significant capacity-building strategies that vary in terms of their conditions. Municipalities, however, incline towards impromptu and opportunistic responses, some of them having lasting effects by patching up existing institutional settings, others having more of an episodic character. The results will further the understanding of subnational low-carbon policy and governance innovation processes vis-à-vis the role of LLCEIs.

While many nations around the world have released principles and ethical frameworks to shape the development and use of AI, there has been a notable absence of regulation. While many voices have emotively articulated why we need AI regulation, few have suggested how this can be achieved. One reason for this conspicuous absence of regulation may be the lack of a clear model for connecting future AI-specific regulation to the existing labyrinth of non-AI-specific laws that can potentially apply to AI systems, services, and products. The ubiquitous nature of AI, a general-purpose technology that diffuses across sectors, analogous to former inventions such as electricity, semi-conductors, and nuclear power, exacerbates this problem. A further reason for the lack of AI regulation may be uncertainty as to how to appropriately calibrate safety and innovation, and a growing divergence between legal, business, and tech communities on the best way forward. In such a vexed and complex environment, the objective of this article is to present a four-step integrated regulatory model for the development and use of AI. To do so, the article begins by examining existing AI principles and ethical guidelines to discern common values, principles, and priorities that resonate across jurisdictions. The USA, the United Kingdom, the European Union, and the OECD have been selected for examination as they display a nuanced discourse. Building on this principled foundation, the article then considers the unique features of AI that need to be addressed when developing a regulatory framework, as well as insights that may be gained from relevant traditional regulatory theories. Based on this foundational analysis, the article suggests a new four-step integrated model of AI regulation. It is hoped that the proposed model will provide insights and ideas to regulators, policy makers, and others involved in the critical enterprise of our time - designing AI regulation that is both legally sound and logistically enforceable.

Although the debate on AI regulation is still fluid at a global level and the European initiatives are in their early stages, three possible approaches to grounding AI regulation on human rights are emerging. One option is a principles-based approach, comprising guiding principles derived from existing binding and non-binding international human rights instruments, which could provide a comprehensive framework for AI. A different approach focuses more narrowly on the impacts of AI on individual rights and their safeguarding through rights-based risk assessment. This is the path followed by the Council of Europe in its ongoing work on AI regulation. Finally, as outlined in the EU proposal, greater emphasis can be placed on managing high-risk applications by focusing on product safety and conformity assessment. Despite the differences between these three models, they all share a core concern with protecting human rights, recognised as a key issue in all of them. However, in these proposals for AI regulation, the emphasis on risk management is not accompanied by effective models for assessing the impact of AI on human rights. Analysis of the current debate therefore confirms that the HRESIA could not only be an effective response to human-rights oriented AI development that also encompasses societal values, but it could also bridge a gap in the current regulatory proposals.

Export diversification and sustained export growth are widely regarded as essential for long-term economic development in developing countries. However, export performance depends not only on market access and price competitiveness but also on the institutional and administrative capacity of the state. This study examines the relationship between institutional capacity, governance quality, and export performance in Pakistan over the period 1995–2022. Drawing on institutional economics and developmental state theory, the study conceptualizes institutional capacity through governance indicators including regulatory quality, government effectiveness, and control of corruption. Using time-series econometric analysis, the findings reveal that weak institutional capacity has significantly constrained Pakistan’s export growth and diversification. The results highlight that improvements in regulatory quality and corruption control are particularly important for enhancing export competitiveness. The study concludes that strengthening institutional capacity is a prerequisite for achieving sustainable export-led growth and structural transformation in Pakistan.

Companies are powerful initiators and adopters of AI, as they have been of previous industrial revolutions. Their boards of directors and the regulatory frameworks that govern directors will inevitably influence the development and implementation of AI. However, despite intense attention to AI regulation the regulatory contribution of directors’ duties remains relatively unexamined. This article critically analyses the capacity of these longstanding legal principles to assist with wider AI regulatory goals, demonstrating that directors’ duties have direct consequences for the regulation of AI. Evolved in response to the governance context of a complex artificial entity, the corporation, directors’ duties map onto key AI regulatory requirements. These include the need for broadly accepted but flexible and responsive norms, and a capacity to engage post-facto with both nuanced, complex fact situations and opaque decision making processes. Directors’ duties jurisprudence brings with it experience of reverse-engineering fact situations and responding to disembodied legal actors, two factors that may have wider AI regulatory application. Directors’ duties also demonstrate responsiveness to changing social perspectives, facilitating integration of developing attitudes to AI. Attending to the AI regulatory role played by directors’ duties can inform effective AI regulation and facilitate improved regulatory design overall.

The purpose of this study is to examine how legal and regulatory frameworks influence foreign policy decisions, considering the complex dynamics of transboundary water governance, aiming to understand water scarcity, regional diplomacy, and interlinked investment decisions. This is in conjunction with the ongoing disputes over water resources and infrastructure projects, such as Ethiopia's Grand Ethiopian Renaissance Dam. Historical treaties that shape regional relations are situated within theoretical frameworks, such as hegemony theory, which explains power asymmetries among riparian states. The theory of cooperation and participation emphasises stakeholder engagement and inclusive decision-making. At the same time, international water resources governance highlights the importance of coordinated efforts among regional and global actors, analysing how power dynamics, legal structures, and institutional capacities influence policy outcomes in the Nile Basin Countries. Methodologically, the research adopts a mixed-methods approach, combining both qualitative and quantitative techniques. Data collection involved structured surveys administered to 251 stakeholders across five Nile Basin countries, including government officials, academic experts, and regional organisations. The study also incorporated interviews, policy analysis, and review of legal documents to deepen understanding. Quantitative analysis employed descriptive statistics, correlation matrices, and regression models to assess relationships between legal frameworks and foreign policy decisions, while qualitative insights provided contextual understanding of regional challenges and opportunities. The findings reveal that existing legal frameworks are perceived as inadequate, with low ratings for their effectiveness, while dispute resolution mechanisms and policy harmonisation efforts are moderately developed. Strong correlations exist between legal structures, implementation capacity, and policy outcomes, indicating that robust legal arrangements are critical for effective governance. The analysis confirms that legal and institutional reforms, including the strengthening of dispute resolution and policy alignment, significantly influence foreign policy decisions. Environmental challenges, notably climate change impacting water availability, further complicate cooperation in wetlands, protecting the ecosystem and biodiversity, underscore the need for adaptive legal frameworks. The study also highlights the influence of geopolitical power asymmetries, historical treaties, and foreign investments on regional relations. In conclusion, the research emphasises that legal and regulatory frameworks are pivotal for regional stability and sustainable water management in the Nile Basin. It recommends that policymakers prioritise the development of comprehensive, adaptive legal instruments, foster regional dialogue, and build institutional capacities. Strengthening dispute resolution mechanisms and encouraging stakeholder participation are essential for cooperation. The study advocates for integrating environmental considerations into legal frameworks and leveraging international partnerships, supporting sustainable development. Overall, the findings suggest that a holistic approach combining legal reform, diplomatic engagement, and capacity-building is vital for fostering long-term peace and equitable resource sharing among Nile Basin countries.

The transition from internal combustion engine (ICE) vehicles to electric vehicles (EVs) globally is transforming the automotive sector and the necessary expertise for workers. The National Automotive Policy (NAP 2020) of Malaysia aims to establish the nation as a regional centre for sustainable mobility. It is essential for the Technical and Vocational Education and Training (TVET) curricula to be prepared for electric vehicle (EV) integration. This research paper provides a conceptual and narrative assessment of the curricular readiness of Malaysia's automotive Technical and Vocational Education and Training (TVET) programs for electric vehicle (EV) technology. The paper employs Fullan’s Educational Change Theory and Rogers’ Diffusion of Innovation Theory to outline preparation across four dimensions: policy direction, institutional capacity, human capability, and curricular alignment. The study integrates research, policy documents, and institutional reports published from 2015 to 2025. The findings indicate that despite national programs such as NAP 2020 and the Low Carbon Mobility Blueprint (2021–2030) promoting the proliferation of electric vehicles (EVs), their adoption at the institutional level remains constrained. Numerous automotive TVET programs continue to emphasise conventional internal combustion engine technologies. This is due to inadequate infrastructure, insufficiently qualified educators, and a lack of effective collaboration within the business. The study proposes a cohesive framework for enhancing EV curriculum readiness through policy alignment, professional development, and strengthened industry partnerships. It posits that the integration of EV technology into Malaysia's automotive TVET signifies not only a curricular reform but also a strategic progression towards ecological industrial transformation and sustainable workforce development.