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DCO Unveils Ethical AI Guidebook To Strengthen AI Governance

by THEFUTURE.TEAM

July 9, 2026

The Digital Cooperation Organisation (DCO) has launched a new guidebook to help governments turn ethical artificial intelligence principles into practical public policy, unveiling the publication in Geneva alongside the first United Nations Global Dialogue on Artificial Intelligence Governance.

As governments around the world move from debating AI ethics to building regulatory frameworks, the challenge is no longer defining principles but translating them into laws, institutions and governance models that can keep pace with rapidly evolving technology. Cyprus, which joined the DCO as part of its broader strategy to strengthen international cooperation on digital transformation, is among the organisation’s member states.

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A Policy Blueprint For The AI Era

The DCO launched the DCO Ethical AI Guidebook for Policymakers on July 8 during a session organised with the Saudi Data and AI Authority (SDAIA) and the International Center for Artificial Intelligence Research and Ethics (ICAIRE).

The event, titled “Responsible, Trusted, and Safe AI for Prosperity: From Principles to Practice,” took place on the sidelines of the United Nations Global Dialogue on Artificial Intelligence Governance, held in Geneva on July 6 and July 7, 2026.

According to the DCO, the session brought together policymakers, international organisations, industry leaders, academics, civil society representatives and technical experts to examine how countries can accelerate the responsible adoption of AI through practical governance, capacity building and cross-border collaboration.

From Principles To Implementation

Designed for governments, regulators and national AI task forces, the guidebook aims to help translate high-level ethical commitments into legislation, national strategies and governance structures that support innovation while maintaining trust and accountability.

According to the DCO, the publication builds on its Principles for Ethical AI and the Riyadh AI Call to Action Declaration and forms part of a broader policy toolkit intended to strengthen national AI readiness and support more consistent policymaking across jurisdictions.

That toolkit also includes the DCO AI Ethics Evaluator, the AI-REAL Toolkit and Web Portal, and the Digital Economy Navigator. Together, these resources are designed to strengthen institutional capacity, reinforce trust and support evidence-based policymaking and investment decisions.

Why Global AI Governance Still Faces A Capacity Gap

Speaking during the main programme of the UN Global Dialogue on Artificial Intelligence Governance, DCO Secretary-General Deemah AlYahya said more needs to be done to ensure that the “World Digital Majority” has a meaningful role in shaping the rules that will govern the next generation of AI.

“The architecture of the AI age is being drawn right now, and more than half the world’s nations are not holding the pen.”

In her view, the greatest challenge is not reaching agreement on ethical principles but giving governments the capacity to implement them effectively.

“The world does not lack principles. We agree AI must be responsible, trustworthy and inclusive. What the world lacks is the capacity to act on them.”

She said the new guidebook is intended to help close that gap by providing governments with practical tools to develop effective AI governance and ensure the technology becomes a driver of digital prosperity rather than fragmented regulation.

A Growing Multilateral Player In Digital Policy

Established in 2020, the Digital Cooperation Organisation describes itself as the world’s first standalone international intergovernmental organisation dedicated to accelerating the growth of an inclusive and sustainable digital economy.

Its 16 member states represent a combined economy of nearly $3.5 trillion and a market of more than 800 million people, with over 70% of the population under the age of 35. Against that backdrop, the organisation argues that effective AI governance will be just as important as technological innovation in ensuring long-term economic and social development.

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Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

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Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.