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Governance-Driven Development: Embedding Regulatory Requirements in AI Development Workflows
Proceedings of Fifth European Conference on Algorithmic Fairness, PMLR 350:365-371, 2026.
Abstract
AI governance under the EU AI Act faces a structural misallocation of effort: management-based regulation, combined with the credence-good properties of governance outcomes, pushes resource-constrained organisations toward verification-facing documentation rather than the implementation it is meant to verify. We propose Governance-Driven Development (GDD), a framework that treats AI Act obligations and the requirements of supporting standards for safe AI development as formal specifications for software development work. GDD runs on two nested action cycles. A planning cycle scopes obligations against organisational context to produce specifications. An implementation cycle converts each specification into the artefact it specifies, with traceability back to the regulatory source. AI agents perform template-driven work; humans retain interpretation and accountability. The framework is in early implementation at an AI Startup, with unresolved load-bearing questions around knowledge base architecture and obligation decomposition.