Governance & Corporate Responsibility

Is Big Tech Replacing Governments—and Should Corporate Responsibility Apply?

By Charu Bigamudra January 17, 2026 6 min read

Technology companies are taking on an increasingly prominent policy role. As Generative AI experiences rapid growth, governments around the world are being forced to rethink how policymakers operate and who is actually invited to the table.

Following the public release of tools like ChatGPT, policymakers and education systems acted quickly to address issues from academic integrity to liability. However, the companies developing these systems weren't just onlookers; they were actively involved in the policymaking process, providing technical expertise and advocating for specific regulatory frameworks.

The Rise of the "Policy Entrepreneur"

Research published in 2025 in the Journal of Policy and Society suggests that major tech firms are now acting as "policy entrepreneurs"—identifying problems, creating solutions, and shaping political agendas. Companies like Google, Microsoft, Amazon, Meta, and OpenAI own the digital infrastructure and data access necessary to drive the AI revolution.

The Compute Divide: The barriers to developing GenAI are exceptionally high. The specialized talent and massive computing power required have led to a "compute divide" between private tech companies and government agencies.

An Evolving Partnership

This trend doesn't necessarily mean governments are being replaced, but it signals an evolution. From cloud storage to digital communication, government agencies rely heavily on private sector infrastructure. In times of crisis—like wars or natural disasters—tech companies are now responsible for preserving communication and directing the flow of information.

However, this reliance complicates regulation. Regulators often lack the technical resources to independently assess risks, establish standards, or predict the future impacts of the systems they are trying to oversee.

The Accountability Gap

Despite their massive influence, most tech companies are still bound by traditional corporate governance rules designed for industrial-era commerce. These voluntary Corporate Social Responsibility (CSR) policies may not be sufficient for entities that influence democratic processes and global decision-making.

"As we continue to debate the proper roles of government and industry in relation to AI, the developing relationship between these two sectors will remain a topic of concern."

Conclusion

The role of government in AI regulation is still being defined, specifically regarding data ownership and algorithmic disclosure. While the EU, US, and Asia are making efforts to create specific laws for AI accountability, the central question remains: In an era where private tech drives public policy, how do we ensure the democratic process remains in the hands of the people?