Algorithmic Constitutionalism and Institutional Transformation: Comparative AI Governance,Digital Rights, and Regulatory Capacity in the European Union and the United States (2020–2026)

Abstract

The rapid expansion of artificial intelligence governance between 2020 and 2026 has transformed
contemporary legal systems, institutional accountability structures, and global regulatory governance. This
article examines how emerging forms of algorithmic constitutionalism have reshaped the relationship
between digital regulation, democratic governance, institutional legitimacy, and socio-economic
transformation in the European Union and the United States. The article argues that AI governance has
evolved beyond a narrow technological regulatory concern into a broader constitutional and institutional
project involving competing conceptions of public authority, market regulation, human rights protection, and
democratic accountability. Using comparative legal-institutional analysis, the article evaluates the European
Union’s rights-based and precautionary regulatory architecture alongside the United States’ fragmented and
market-oriented governance model. The findings demonstrate that institutional regulatory capacity
significantly shapes the effectiveness, legitimacy, and adaptability of AI governance regimes. While the
European Union has pursued centralized regulatory harmonization through the AI Act, Digital Services Act,
and data governance reforms, the United States has relied on sectoral governance, executive coordination,
and private-standard development. The comparative evidence reveals substantial divergence in regulatory
coherence, accountability mechanisms, judicial oversight, and institutional resilience. The article contributes
to contemporary legal scholarship by conceptualizing algorithmic constitutionalism as a transformative
governance paradigm linking digital regulation, institutional accountability, public trust, and democratic legitimacy. It further demonstrates how contemporary AI regulation increasingly functions as a central arena
of global legal transformation and transnational governance competition.