How can the EU and its member states defend and reshape multilateral institutions in the digital space, making them more effective, more democratic, and better equipped for a complex, rapidly changing world? This event, organised by IAI and ENSURED, took stock of recent developments in digital governance, highlighting both emerging challenges and ongoing efforts to drive the way forward at national and international levels. Particular attention was devoted to the role of multilateral fora amidst growing geopolitical fragmentation, as well as on their concrete impact in shaping global governance in the field. The event was based on ENSURED findings on digitalisation and featured contributions from international researchers, experts, and policymakers actively engaged in multilateral processes, who shared their insights and first-hand experience.
ENSURED on Global Digitalisation Governance
Ettore Greco opened the event by presenting the ENSURED research project and its relevance in the current global context. He emphasized how the international environment has changed significantly since the project began in 2022, making discussions on rules-based global governance, digital cooperation and multilateral regulation even more relevant today. In his introduction to the first panel, which presented the findings from the ENSURED project workstream on digitalisation — drawing on two reports on ongoing efforts to establish shared regulation of cyberspace and artificial intelligence (AI), respectively — he also stressed the importance of balancing effectiveness, adaptability, and democratic participation in future governance mechanisms.
Federica Marconi, presenting the report Regulating Cyberspace: UN Consensus-Building in a Fragmented Digital World, argued that digital transformation is now a central driver of geopolitical competition, extending beyond traditional technological leadership to include the governance and regulation of the digital ecosystem. International efforts have mainly developed within the UN through two key platforms: the state-led Open-Ended Working Group (OEWG) and the multistakeholder Internet Governance Forum (IGF). Recent institutional developments, including the launch of a new UN cybersecurity mechanism and the permanent status granted to the IGF, aim to strengthen continuity and coherence. However, significant uncertainty remains as to whether these frameworks will be able to overcome fragmentation and deliver truly operational global governance outcomes.
Wade Hoxtell, presenting the report Global AI Regulation at a Time of Transformation: The Council of Europe’s Framework Convention on Artificial Intelligence, argued that the Convention represents both a success and a limitation of contemporary multilateralism: while it is the first legally binding international AI treaty and reflects the EU’s human rights-based regulatory approach, political compromises significantly weakened its scope by excluding private-sector obligations and national security uses of AI. His main point was that even among like-minded democracies, domestic political constraints and competitiveness concerns shape international governance outcomes more than the actual global risks posed by AI.
Discussion Around Growing Fragmentation of the Digital Economy
The second session explored the current state of global governance in the digital domain, with a particular focus on multilateral efforts in a context of increasing geopolitical fragmentation and their implications for the broader governance landscape.
Tommaso Giardini (Associate Director of the Digital Policy Alert, St. Gallen Endowment for Prosperity Through Trade) highlighted that the main challenge in digital governance today is the growing fragmentation of the digital economy caused by uncoordinated domestic regulation. While governments are responding to legitimate concerns around AI, data governance, and online platforms, national regulatory initiatives increasingly create cross-border compliance burdens and uncertainty, particularly for smaller firms operating internationally. At this stage, international coordination frameworks remain too high-level compared to the speed and diversity of domestic regulation. This makes transparency and regulatory mapping essential tools to support alignment across jurisdictions, even if meaningful global harmonisation remains politically difficult.
Molly Lesher (Head of Division, OECD Digital Connectivity, Economics and Society Division) emphasised that effective digital and AI governance requires international coordination as well as strong domestic policy coherence. Referring to the G7 Hiroshima AI Process, she highlighted the importance of voluntary, multi-stakeholder, and risk-based governance frameworks that promote transparency and trust in AI development. At the same time, she stressed that fragmented regulatory approaches — especially in areas such as cybersecurity and data governance — create significant compliance burdens and economic costs for companies operating across jurisdictions. Her main point was that improving regulatory coherence, both within countries and internationally, is essential for making global digital governance more effective and implementable.
Improving regulatory coherence, both within countries and internationally, is essential for making global digital governance more effective and implementable.
Nosipho Nausca-Jean Jezile (Ambassador of the Republic of South Africa to Italy, and Permanent Representative to the UN Agencies in Rome) stressed that AI and digital governance must be approached through the lens of inclusivity, development, and multilateral cooperation, particularly from the perspective of the Global South. Speaking in the context of the recent South Africa’s G20 presidency, she emphasised that digital transformation offers major opportunities for economic growth, education, healthcare, and financial inclusion, but also risks deepening existing inequalities due to persistent gaps in connectivity, infrastructure, and digital access across Africa. Going ahead, global digital governance should prioritise human-centered, ethical, and development-oriented approaches to AI, cybersecurity, and digital sovereignty, while addressing the structural inequalities underlying the global digital divide.
Valentin Weber (Senior Associate Fellow, German Council on Foreign Relation) noted that beyond traditional multilateral forums (G7, G20, UN), a major but often overlooked layer of AI governance is emerging in the form of parallel, China-led “AI cooperation infrastructure” (e.g., regional AI centers and partnerships). He explained that these initiatives are about dialogue as well as about exporting Chinese AI technologies, standards, and digital ecosystems through bilateral and regional hubs in places like Southeast Asia and potentially BRICS and other regions. According to him, AI governance is increasingly being shaped through these practical infrastructure networks and other actors (notably Europe and like-minded countries) need to develop alternative cooperation spaces to avoid a fragmented system dominated by competing geopolitical AI blocs.
In his conclusions, Ettore Greco highlighted the existence of a “mixed picture”: despite progress through UN processes, OECD initiatives, and the Council of Europe AI framework, significant political and technical obstacles continue to hinder global regulatory alignment, even as efforts toward greater coherence remain ongoing.
Photo: Robynne O/ Unsplash (Unsplash Liscense)
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