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Who's In Charge? The Governance Crisis Nobody Actually Planned For

Inside The Machine
Inside The Machine
Authored by Neal Lloyd  ·  Daily AI Series
Inside The Machine
← All Episodes
Day 05
Governance · Regulation · Power

Who's In Charge?
The Governance Crisis Nobody Actually Planned For

The people who understand AI are building it. The people who can regulate it don’t understand it. We are running significantly short of time.

Neal Lloyd
Neal Lloyd
Author  ·  Inside The Machine  ·  May 2026
9 min read

Somewhere in Brussels, a committee is drafting regulations for a technology that will have changed fundamentally by the time those regulations take effect. Somewhere in Washington, a senator is preparing AI questions that will demonstrate they don’t understand how the internet works, let alone what comes after it. Somewhere in San Francisco, a team of engineers is shipping a capability update that renders three months of policy analysis obsolete before it is published. This is AI governance in 2026. It is not a stable situation.

The EU AI Act

The World’s First Major AI Law: What It Does and Doesn’t

The EU AI Act is the most comprehensive binding legal framework for AI anywhere in the world. It classifies AI by risk level and prohibits the most dangerous applications. This is a genuine achievement. Legislative processes move in years. AI capabilities move in months. By the time a regulation is implemented, it may be addressing yesterday’s system while today’s version has moved beyond its reach.

Legislation moves in years. AI capabilities move in months. By the time a regulation is implemented, it may be addressing yesterday’s system while today’s version has moved well beyond its reach.
Neal Lloyd · Inside The Machine, Day 5
Open vs Closed Source

Should AI Be Open Source? The Debate That Will Shape Everything

The case for open source: models can be audited, smaller organisations can build on them, geopolitical dependence on a handful of US tech companies is reduced. The case against: a sufficiently capable model, once released, cannot be recalled. If it can assist in designing biological weapons or attacking critical infrastructure, that release is irreversible. Both arguments are serious. Neither is obviously wrong.

⚡ The Central Paradox

The people with the deepest understanding of AI risks are employed by the companies building AI. The people with the power to regulate it are in governments that lack technical expertise. The people most affected have the least influence. This is the governance challenge of the moment.

AI-Powered Surveillance

The Infrastructure Being Built Right Now

Facial recognition AI can identify a specific individual from camera footage in a crowd, in real time, and cross-reference against databases of criminal records, travel history, and financial transactions. This capability exists. It is deployed in 109 countries. Legal frameworks governing its use range from comprehensive and restrictive in a few jurisdictions to essentially nonexistent in most. Good governance requires technical expertise, mandatory transparency, and international coordination. Currently, we have none of these at sufficient scale.

— Neal Lloyd
Inside The Machine, Day 05  ·  May 2026
Neal Lloyd
About The Author Neal Lloyd
Neal Lloyd
Author  ·  Series Creator
Authored by Neal Lloyd

Neal Lloyd writes about technology, human adaptation, and the uncomfortable questions nobody wants to answer at dinner. Inside The Machine is his ongoing daily series on AI.

By The Numbers
1
Major binding AI regulatory framework globally as of 2026. One.
109
Countries with facial recognition deployed.
Yrs
Typical legislative timeline for major regulation. AI capability timeline for equivalent change: months.
Key Frameworks
EU AI Act
The world’s first comprehensive binding AI regulation. Significant. Not sufficient on its own.
Explainable AI
The push to make AI decisions legible to the people they affect.
Open vs Closed Source
Whether powerful models should be publicly available. Both sides have serious arguments.
Algorithmic Auditing
Independent review of AI for bias and safety failures. Still inconsistently applied.
Inside The Machine
An ongoing daily editorial series on artificial intelligence.
Authored by
Neal Lloyd
Day 05  ·  Ongoing Series  ·  May 2026  ·  © Neal Lloyd


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