Published in: Artificial Intelligence

Everything you need to know about AI governance

Published on: July 22, 2026

You have probably noticed that Artificial Intelligence (AI) is everywhere, transforming the way we work and live. However, behind this entire technological revolution is a fundamental topic that we sometimes forget because it sounds a bit technical or boring: AI Governance.

We know that reading about laws and regulations can be dense and complicated. That is why today we are putting legal jargon aside to explain simply, closely, and directly what this AI governance is, why it affects us all, and how companies can apply it without slowing down their innovation.

What is AI Governance?

Until recently, talking about AI governance was something that only interested theorists and academics. Today, with AI making important decisions in companies and administrations, it has become an urgent priority.

In short, AI Governance is the set of rules, practices, and tools that ensure artificial intelligence is developed and used safely, ethically, and in respect of our fundamental rights. It is not about banning for the sake of banning, but about harmonizing tremendous technological advancement with the protection of privacy, equity, and the stability of our society.

The Risks of Unsupervised AI

Launching Artificial Intelligence systems without rigorous control is like driving a sports car without brakes. A lack of supervision exposes companies and citizens to very serious risks:

• Algorithmic biases and discrimination: AI learns from mountains of historical data that, unfortunately, often carry human prejudices. If we do not clean them, an algorithm could deny a loan or discard a resume by unfairly discriminating against certain groups. Added to this is the “black box” problem: sometimes mathematical models are so complex that not even their creators can explain why the AI made a specific decision.
• Privacy and disinformation: The ability to create deepfakes (hyper-realistic fake videos) or “hallucinations” (when AI invents data and presents it as true) is a danger to truthful information and cybersecurity. In addition, the massive scraping of data on the internet to train these AIs often clashes with our privacy and intellectual property rights.
• Socio-labor and environmental impact: Training large models consumes an enormous amount of energy and water. On the other hand, automation will change the labor market. According to a Funcas study for Spain, although AI could destroy around 2.3 million jobs in a decade, it will also create 1.61 million new specialized positions. The real challenge will be professional retraining so that more than 3 million workers can boost their productivity using AI.

Regulatory Frameworks and Security

To bring order to this scenario, various global organizations are creating the rules of the game. At a global level, institutions like the UN, UNESCO, and the OECD have set the first ethical principles (soft law), prioritizing transparency, human rights, and sustainability. But it is in Europe where the rules have become mandatory.

Different Risks within the EU AI Act

The European Union has taken a giant leap with its European Artificial Intelligence Act (EU AI Act), which classifies AI not by its technology, but by the risk posed by its use:

1. Unacceptable Risk: Totally prohibited. This includes AIs that manipulate human behavior, indiscriminate facial recognition on the internet, or citizen social scoring systems. (The recent 2026 Digital Omnibus also prohibits creating non-consensual intimate material).
2. High Risk: AIs that make decisions about education, employment, justice, or critical infrastructure. They are permitted, but must pass strict controls, guarantee constant human oversight, and be bias-free.
3. Limited Risk: The key here is transparency. If you talk to a chatbot, the company must notify you that it is a machine, and deepfakes must be digitally marked.
4. Minimal Risk: The majority of commercial applications (like a spam filter or a video game) fall here and have barely any legal obligations.

Current Regulations in Spain

In Spain, we have not been left behind; in fact, we are pioneers. Our country has demonstrated key strategic leadership:

• AESIA: We are the first European country to create the Spanish Agency for the Supervision of Artificial Intelligence. This agency not only monitors and sanctions, but also has an “Ideas Laboratory” to tackle gender biases, protect minors, and combat disinformation.
• The first European Sandbox: Spain organized a closed testing environment where several companies demonstrated that it is entirely possible to innovate while complying with strict European regulations.
• Technological Sovereignty (ALIA Project): To avoid relying solely on foreign tech giants, Spain has funded ALIA, a family of language models trained in Spanish and co-official languages, designed from the ground up to be transparent and ethical.
• A comprehensive regulatory framework:
  • Regulation (EU) 2024/1689 (EU Artificial Intelligence Act or EU AI Act)
  • Draft Organic Law for the proper use and governance of artificial intelligence
  • Royal Decree 729/2023 (AESIA Statute)
  • Law 12/2021 (known as the “Rider Law”)
  • Organic Law 3/2018 (LOPDGDD) and the European GDPR
  • Royal Decree 817/2023 (Controlled testing environment)
  • Regional Regulations (Example: Decree-Law 2/2023 of Extremadura)

How to Apply AI While Complying with All Regulations

At this point, the question is: how do I integrate AI into my company without breaking the law? The answer lies in technological architecture and good governance.

Regulation should not be seen as a roadblock, but as a tool to build trust with your clients and gain a competitive advantage. To apply AI correctly, you need traceability, quality data, and platforms that allow you to audit every automated decision.

At Luce IT, we help you integrate artificial intelligence in a structured and secure way with our AI Distribution framework. This AI governance solution allows you to adopt multi-agent models in a scalable and sovereign manner, ensuring regulatory compliance. Request a demo here.

Frequently Asked Questions about AI Governance

What is the EU AI Act and who does it affect?

It is the European Artificial Intelligence Act, a pioneering law that classifies AI systems according to their risk level (unacceptable, high, limited, or minimal). It affects any company, regardless of where its headquarters are located, if its AI systems are used or have an impact within the European Union.

What is AESIA and what is its role in Spain?

AESIA is the Spanish Agency for the Supervision of Artificial Intelligence. It is the first agency of its kind in Europe and is responsible for ensuring that algorithms comply with the law, advising companies and citizens, and promoting the ethical use of technology through initiatives such as its “Ideas Laboratory”.

Why is the “black box” in Artificial Intelligence considered dangerous?

The “black box” effect occurs when an AI system is so mathematically complex that not even its own developers can exactly explain how it reached a specific decision. This is dangerous because it prevents transparency, hinders accountability, and makes it almost impossible for a person to file a claim if the AI makes an unfair or discriminatory decision against them.

What are the main risks of implementing AI without governance?

The use of artificial intelligence without control can generate serious vulnerabilities, such as algorithmic discrimination due to data biases, lack of transparency (black box opacity), violations of user privacy, and cybersecurity issues, such as automated disinformation campaigns.