By Juliet Umeh

The Founder and Chief Executive Officer of CarbonAI, Debola Ibiyode, has called for a balanced approach to artificial intelligence, AI, regulation, warning that innovation without appropriate safeguards poses significant risks, while excessive regulation could stifle technological progress.

Speaking at the AI Summit 2026 in Lagos, Ibiyode urged policymakers, businesses and other stakeholders to embrace what she described as “AI Diplomacy” to ensure responsible AI adoption while driving economic growth.

Addressing the summit’s theme, “The AI Conversation – Ethical Use of Artificial Intelligence in Nigeria: Balancing Regulation and Innovation,” she argued that sustainable economic benefits from AI can only be achieved through responsible deployment backed by clear regulatory frameworks.

According to her, regulation should not be viewed as an obstacle to innovation but as an essential ingredient for building trust in AI systems.

“Innovation without regulation is a risk, and regulation without innovation is stagnation. We should apply AI for economic growth. However, without regulation, economic growth will not happen because there will not be profitability. If we do not apply AI responsibly, we cannot profit from it,” she said.

Drawing from CarbonAI’s experience in developing sustainability solutions for the carbon market, Ibiyode said increasing numbers of corporate organisations are demanding stronger governance before deploying AI tools.

She explained that clients are seeking assurances on data protection, model transparency and accountability.

“As we scale to large corporate clients, the questions we get are: ‘How can I trust your model? What regulations protect my customers or employees using your model?’ There is a critical trust element right now, and only regulation can provide that confidence. Corporations want to understand the traceability of AI models and how they arrive at their decisions,” she said.

Ibiyode noted that although AI technologies such as deep learning have existed for years, the rapid emergence of generative AI and advanced natural language processing has heightened concerns over misuse, particularly through threats such as deepfakes.

She stressed the need for regulations that protect citizens from the harmful applications of AI while allowing innovation to flourish.

To address the challenge, she proposed an AI Diplomacy framework that balances innovation, regulation and national sovereignty.

According to her, innovation remains the engine of economic growth, while regulation provides the security and trust needed for widespread adoption. AI diplomacy, she added, ensures that countries and organisations retain sovereignty over their data, AI models and digital infrastructure.

“AI diplomacy must happen at both the national and corporate levels. Everyone must be involved in shaping regulations that are practical and capable of protecting users. Innovation brings growth, regulation provides security, but AI diplomacy is what ultimately gives us sovereignty over our tools and data,” Ibiyode said.