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Artificial Intelligence and Institutional Transformation across Regulatory Economic and Knowledge Systems

Goyal Madhu, S Peter Emil Jebakumar, Ms Deepti Singh, Ms Tanya Chopra, Mrs Divesh Sinha, S Pavan Gowtham Kumar · Journal of Science Engineering Technology and Management Sciences · 1 Jun 2026

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A comparative institutional analysis argues AI is straining global governance capacity unevenly, finding the EU shows relatively high institutional adaptability to AI governance while Global South countries face bigger governance and infrastructure gaps, and that fewer than ten multinational firms account for nearly 78% of global AI infrastructure capacity. The concentration finding adds an economic-power dimension — not just labor or productivity — to the debate over AI's global governance risks.

Abstract

Introduction: Artificial Intelligence (AI) is revolutionizing the nature of governance, economic systems, and knowledge infrastructures around the globe.The emergence of generative AI and algorithmic governance is escalating the existing difficulties associated with fragmentation of regulation, economic consolidation, institutional lagging, and disparities in technological capabilities between advanced and developing countries.Purpose: To explore how the AI transformation process influences the evolution of regulatory, economic, and knowledge systems while discussing the limitations of traditional models of governance.Methodology: Mixed methods comparative institutional research design which applies governance mapping, policy analysis, quantitative data, and conceptual systems modeling techniques.Conclusion: The paper argues that AI is creating new opportunities but also poses significant risks, especially for the Global South.In particular, the results show important disparities in AI governance maturity, with the EU exhibiting higher levels of institutional adaptability whereas Global South countries experience governance and infrastructural deficiencies.Moreover, less than ten multinational companies account for almost 78% of AI infrastructures' capacity on the planet, increasing economic concentration and algorithmic dependencies.Contribution: The paper provides a new model of institutional analysis based on a combination of institutional theory, political economy, governance, and AI ethics.

About this publication

Academic journal. Published in an academic journal — typically peer-reviewed before publication, though indexing alone doesn't guarantee review depth.

Published
2026 (5 months ago)
Citations
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