Sixty nations signed a declaration at the Paris Artificial Intelligence (AI) Action Summit, vowing to make artificial intelligence more inclusive, sustainable, and cooperative. The document sets broad goals—bridging digital divides, ensuring ethical AI, and tackling its energy impact. Yet, two major players—the US and the UK—refused to sign.

Their absence has huge implications, particularly for data privacy management and data governance solutions. AI governance is already a battleground, with the US favouring looser data rules to encourage innovation and the EU pushing for strict oversight to protect privacy. Without a global consensus, businesses and policymakers now face a fragmented landscape. Where AI systems are built, where they process data, and where they are deployed could all determine which rules apply. Cross-border data transfers will become more complicated, requiring cross-border data transfer compliance strategies, and companies operating in different regions will need to navigate conflicting regulations.

What’s in the Declaration?

1. Inclusivity and Accessibility
   In the spirit of ensure that AI shouldn’t just benefit a few, the declaration pushes for an open, human-centred approach—one that ensures AI is ethical, transparent, and safe. Developing nations, often left behind in tech revolutions, need support to build their AI capacities.
2. Sustainability
   AI is power-hungry. To combat this, countries commit to investing in sustainable AI systems, monitoring energy consumption, and developing AI that aligns with global climate goals.
3. Innovation and Economic Growth
   The goal is to fuel AI innovation while preventing monopolies. There’s concern that AI could concentrate power in a few hands—tech giants, dominant economies—so the declaration promotes competition. It also aims to safeguard jobs by ensuring AI supports, rather than replaces, human labour.
4. International Cooperation
   AI governance can't be a solo mission. The declaration calls for global collaboration—countries working together on AI rules, sharing insights, and coordinating governance efforts.

Data Privacy: A Brewing Battle

Though the declaration doesn’t dive deep into data protection solutions, its implications are massive:

1. Different AI Philosophies
   The US values speed and innovation, favouring looser restrictions on AI data collection. The EU insists on strong data protection, requiring transparency, consent mechanisms, and privacy impact assessment (PIA) tools to evaluate AI risks. This fundamental divide will shape future AI policies.
2. Cross-Border Data Issues
   If the US and EU pursue opposing AI rules, companies will face major compliance headaches. They may have to implement GDPR compliance tools, CCPA compliance software, and privacy compliance automation systems separately for different regions.
3. Trust and Safety
   The declaration stresses the need for AI transparency and safety—especially regarding misinformation and deepfakes. While the US and UK agree on these concerns, their decision to sit out suggests they want to address them on their own terms.
4. Regulatory Fragmentation & Compliance Burdens
   Businesses operating in multiple regions will need robust privacy compliance software and privacy management platforms to keep up with evolving regulations. This may involve implementing:
   • Data subject access requests (DSAR) management systems
   • Data mapping software to track personal data
   • Vendor risk management tools to assess third-party AI providers
   • Cookie consent management solutions to comply with privacy laws

The UK’s Balancing Act

The UK is caught between two AI powerhouses: the US and the EU.

• Will it align with the US? A looser regulatory approach could encourage AI investment and partnerships.
• Will it follow the EU? Stricter AI rules could give UK businesses easier access to European markets but require more compliance investments.

For now, the UK seems undecided. Businesses may need to prepare for potential changes by adopting AI-driven privacy solutions and automated compliance reporting to streamline governance.

The EU’s Approach: Regulate and Invest

The EU is all in on strong AI governance. It is pushing for stricter AI rules, requiring companies to use machine learning privacy tools for risk detection and sensitive data detection software to flag potential compliance issues. The EU is also investing in data governance solutions, funding data centres and research to build homegrown AI capabilities.

Big Picture: A Fractured AI Future?

The Paris declaration aimed for unity, but the US and UK’s absence signals that AI governance will likely be fragmented. This has serious consequences:

• Diverging AI standards will complicate international cooperation.
• Businesses will face regulatory confusion, requiring more enterprise data privacy software to ensure compliance.
• Authoritarian AI risks remain, with concerns about AI development in non-democratic states.

One thing is clear: there is no single path forward. AI governance is still up for debate, and the world must decide how much control is too much—or too little.