Two of the biggest names in tech are calling for a more hands-on approach to artificial intelligence regulation. The legal chiefs of Block, the payments company founded by Jack Dorsey, and Spotify, the music streaming giant, are urging companies to build their own AI governance frameworks rather than wait for governments to act.
Why proactive governance matters now
Speaking at a recent industry event, the executives argued that the rapid pace of AI development means regulators can't keep up. Block's general counsel emphasized that companies deploying AI at scale have a responsibility to set internal rules before external ones arrive. Spotify's top lawyer echoed that sentiment, noting that adaptability is key—rules need to evolve as the technology does.
The two legal leaders stressed that self-built tools for monitoring and auditing AI systems are essential. They pointed to the risks of relying solely on off-the-shelf compliance products, which may not fit a company's specific use cases. Instead, they advocate for in-house solutions that can be updated quickly as new challenges emerge.
Staying ahead of the regulatory curve
Both executives highlighted the importance of anticipating regulation rather than reacting to it. Block's legal chief warned that companies that wait for laws to be written will find themselves scrambling to comply. Spotify's general counsel added that early investment in governance can become a competitive advantage, especially as lawmakers in the EU and US draft new AI rules.
The push for self-built tools isn't just about compliance—it's about trust. The legal leaders noted that customers and investors increasingly expect transparency around how AI decisions are made. Without internal governance structures, companies risk reputational damage when AI systems go wrong.
What self-built governance looks like
According to the executives, effective AI governance starts with clear internal policies on data usage, model training, and output monitoring. They recommend creating cross-functional teams that include legal, engineering, and product staff to review AI projects before launch. Regular audits and bias testing should be built into the development cycle, not added as an afterthought.
Both companies have already begun implementing such measures. Block, which handles financial transactions, has focused on fairness and explainability in its AI models. Spotify, which uses AI for recommendations and content moderation, has developed internal tools to track how algorithms affect user experience and creator revenue.
The unresolved question
While the legal chiefs agree on the need for proactive governance, they didn't specify whether their companies would make their self-built tools available to others. Open-source frameworks could help smaller firms, but proprietary systems might offer a competitive edge. For now, the industry is watching to see whether these internal efforts will become public standards—or stay behind closed doors.
