Madhu Goyal, S. Peter Emil Jebakumar, Deepti Singh, Tanya Chopra, Divesh Sinha, Shantanu Kumar Sahu 03 06 Introduction Artificial Intelligence AI is revolutionizing the nature of governance economic systems and knowledge infrastructures around the globe The emergence of generative AI and algorithmic governance is escalating the existing difficulties associated with fragmentation of regulation economic consolidation institutional lagging and disparities in technological capabilities between advanced and developing countries Purpose To explore how the AI transformation process influences the evolution of regulatory economic and knowledge systems while discussing the limitations of traditional models of governance Methodology Mixed methods comparative institutional research design which applies governance mapping policy analysis quantitative data and conceptual systems modeling techniques Conclusion The paper argues that AI is creating new opportunities but also poses significant risks especially for the Global South In particular the results show important disparities in AI governance maturity with the EU exhibiting higher levels of institutional adaptability whereas Global South countries experience governance and infrastructural deficiencies Moreover less than ten multinational companies account for almost 78 of AI infrastructures capacity on the planet increasing economic concentration and algorithmic dependencies Contribution The paper provides a new model of institutional analysis based on a combination of institutional theory political economy governance and AI ethics Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026