

The regulatory tide has arrived. The EU AI Act, U.S. Executive Order 14110, and ISO 42001 mark the shift from voluntary ethics to mandatory accountability.
Governance 1.0 was about awareness; 2.0 is about enforcement. Organizations must inventory every model, classify risk, document datasets, and prove oversight.
EU AI Act: risk tiers from minimal to unacceptable with penalties up to 6% of revenue.
ISO 42001: management system for AI quality and risk.
NIST AI RMF: standard for trustworthy AI development.
Compliance automation—model registries, explainability dashboards, bias testing—transforms governance from a burden to a business enabler.
Transparent enterprises build faster because regulators, partners, and customers trust them. Governance maturity will soon matter as much as cloud maturity once did.