AI Regulation & Policy
Jun 21, 2026

The Gist
The most consequential AI regulation is happening quietly within governments and international bodies rather than in the public eye, while major tech companies like Amazon resist human-oversight requirements and IBM and ServiceNow battle for control over enterprise AI governance standards. Corporate boards are lagging dangerously behind on AI literacy and accountability measures, and regulatory gaps are already emerging—exemplified by EU retailers seeking exemptions from deepfake rules for AI-generated marketing content, highlighting confusion over what actually needs to be regulated.
Today's Stories
- 1
Most impactful AI governance work happens invisibly inside government and international institutions, not in public statements and open letters.
A writer on LessWrong argues that strategic AI governance work falls into two categories — visible outsider work (press, public statements, open letters) and invisible insider work within ministerial cabinets and international institutions. The author contends that much of the work that has mattered in AI governance has been invisible. The AI governance community appears to be overinvesting in visible intellectual production while overlooking the invisible work that may be more impactful. Some of the most consequential efforts happen in executive branches and through international bodies rather than in the public sphere — a distinction that explains hesitations about replicating certain public advocacy strategies across countries like France.
The author identifies a structural bias in how the AI governance community allocates attention and effort, suggesting that work is not necessarily visible to the people it is meant to influence. Recognizing these invisible channels may reshape how organizations prioritize their governance strategies.
- 2
Amazon opposes regulatory frameworks requiring human oversight of AI systems, arguing they create operational burdens.
Amazon has expressed opposition to governance models that mandate human review and approval steps in AI decision-making processes. The company views such 'human-in-the-loop' requirements as constraints on how it can deploy and operate AI systems. As regulators worldwide develop AI accountability rules, Amazon's stance signals that major tech companies may resist oversight mechanisms intended to catch errors or harms before they reach users. This tension shapes the debate over how strictly AI systems should be reviewed before deployment.
The outcome of ongoing regulatory discussions will determine whether companies like Amazon must embed human checkpoints into their AI workflows, or whether lighter-touch oversight becomes the industry standard.
- 3
IBM and ServiceNow are competing to establish who will own AI governance and oversight as enterprises deploy autonomous AI agents across their operations.
IBM and ServiceNow, two major enterprise software vendors, are each positioning themselves as the authority on governing and controlling autonomous AI agents—systems that can make decisions and take actions on their own. Both companies are investing in tools and frameworks to help businesses manage risks and ensure compliance as these agents become more widespread in corporate environments. As companies move beyond simple AI tools to autonomous agents that operate with less direct human oversight, the question of who sets the rules and guardrails becomes critical. Whichever vendor wins this governance race will shape how enterprises think about safety, compliance, and control—and will likely capture significant software revenue from the resulting demand for monitoring and oversight tools.
The outcome will determine which vendor's governance standards and toolsets become the de facto industry baseline. This is not just a feature competition; it is about establishing control over a foundational layer of enterprise AI infrastructure at a time when autonomous agents are moving from pilot projects into production deployment.
- 4
EU retailers want AI-generated marketing content exempt from deepfake transparency rules, exposing uncertainty over what counts as a deepfake.
Eurocommerce, a trade association representing Amazon, H&M, and IKEA, is pushing for AI-generated ads to be excluded from the EU AI Act's transparency requirements. The group argues that AI-generated images—like a living room scene used to sell furniture—should not be treated as deepfakes. Zalando reports that 90 percent of its marketing content is already AI-generated. The EU lacks a clear definition of what constitutes a deepfake, creating ambiguity about which AI-generated content must comply with transparency rules. Retailers contend that ordinary product images fall outside deepfake rules, but this interpretation remains unsettled, leaving both businesses and regulators uncertain about compliance obligations.
Whether EU regulators clarify the legal boundary between routine AI-generated marketing content and content that qualifies as a deepfake subject to transparency disclosure.
- 5
Corporate boards are falling behind on AI governance, and KPMG says they need basic AI fluency and a shift from automation-focus to accountability to survive the transition.
KPMG, working with INSEAD, published AI Governance Principles for Boards to help executives navigate AI adoption. The guidance identifies five key priorities: treating AI as central strategy (not a fringe technology), building director fluency in AI risks and dependencies, preserving human judgment and accountability in work redesign, making trust and transparency operating principles rather than communication tactics, and overhauling oversight models designed for deterministic systems rather than probabilistic ones. Boards are currently split between loud AI cheerleaders and silent skeptics, but poor governance is exposing that existing oversight models were not fit for purpose. Once AI embeds itself in core processes, the cost of bad governance will show up as operational failure, reputational damage, lost trust, and missed value. The window to shape responsible adoption before damaging practices become normalized is closing.
The tension between moving quickly and building trust. KPMG argues that explainability, fairness, accountability, and transparency are not brakes on innovation but what make it durable. Boards that treat trust as a communications issue rather than an operating principle risk discovering too late that adoption without confidence is not a competitive advantage.
- 6
European retail group asks EU regulators to exempt AI-generated ads from new transparency rules, arguing they should not be treated as deepfakes if they don't mislead.
Eurocommerce, the trade association representing major retailers including Amazon, H&M, Inditex, and Ikea, sent a letter to EU tech chief Henna Virkkunen requesting that AI-generated advertisements be exempted from the EU AI Act's disclosure requirements. The regulation, which enters into force on August 2, requires companies to clearly label where artificial intelligence has been used to generate or modify images, video or audio content constituting a deepfake. The group's director general Christel Delberghe argued that AI-generated ads not intended to mislead users should not fall under the deepfake definition. The EU AI Act represents a significant regulatory shift toward transparency in AI use across the bloc. For retailers and advertisers, compliance could reshape how they create and disclose marketing content. The retailers' request signals that industry players see a tension between broad disclosure rules and practical advertising use cases—and are seeking to shape how the rules apply before they take effect.
The regulation enters into force on August 2, giving the EU a tight timeframe to consider such requests and clarify the boundaries between AI-generated advertising and prohibited deepfakes.
What to Watch
As regulatory frameworks take shape across jurisdictions, watch whether companies like Amazon will be required to embed human oversight into AI systems or whether lighter-touch governance prevails—a decision that will determine which vendor's standards become the industry baseline as autonomous agents move from pilots into production. Simultaneously, the EU's August 2 enforcement deadline for its AI Act will test whether boards embracing trust as an operating principle rather than a communications afterthought gain competitive advantage, while regulators clarify where routine AI-generated marketing ends and regulated deepfakes begin.
Sources
- The Invisible Side of AI Governance
- Why Amazon hates 'human-in-the-loop' AI governance
- IBM Vs ServiceNow, Who Owns Agentic AI Governance?
- The EU doesn't really know what a deepfake is, and that's becoming a problem for retail
- Boards are sleepwalking into the AI era. KPMG’s global risk chief has a survival guide
- AI-generated ads should be exempt from EU transparency rules, retail association says
- AI Governance Cannot Be a Tool Call
- The week that changed AI: Inside Trump’s Anthropic crackdown, and how a phone call from Amazon CEO Andy Jassy triggered the chaos
- Is ServiceNow (NOW) Quietly Becoming the Core Orchestrator of Enterprise AI Governance?
- OpenAI is bringing on some big guns in the lead-up to its IPO
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