Reconsidering the Rules

The emergence of foundation models in the recent past has completely changed the environment of artificial-intelligence governance. Unlike the strictly application-specific systems, foundation models are general-purpose infrastructures implemented in various sectors and jurisdictions, which creates systemic and changing risks. The available legal systems, based on sector regulation, data-protection law, and general liability principles, are poorly adapted to the magnitude, obscurity, and accountability dispersal of these technologies. This chapter has performed an extensive research of the legal and ethical dilemmas posed by foundation models through both doctrinal and comparative studies. It promotes an organization, life cycle regulatory framework which balances the enforceable legal requirements and documented ethical requirements. Through the concepts of proportionality, accountability by design, transparency, human controls and strong system of governance mechanisms, the chapter suggests a consistent and practical answer to governance of foundation models.