Artificial Intelligence (AI) has become an integral part of modern society, influencing decision-making in sectors such as healthcare, banking, law enforcement, education, and governance. The integration of AI into these domains has led to improved efficiency, enhanced accuracy, and greater innovation. While AI offers efficiency and innovation, its unchecked use may result in serious legal and ethical challenges, including privacy violations, discrimination, lack of transparency, and absence of accountability. This research paper examines the regulatory frameworks and recent policy developments governing Artificial Intelligence at international and national levels. It analyses significant legal instruments such as the European Union’s Artificial Intelligence Act, policy-based approaches adopted by the United States, regulatory measures in China, and the evolving Indian legal position. The paper also discusses key concerns relating to data protection, transparency, ethical AI, and liability. The paper highlights the need for balanced and adaptive regulation that safeguards fundamental rights while promoting innovation.  The paper further explores key challenges associated with AI regulation, such as data protection and privacy safeguards, transparency and explainability of algorithms, ethical deployment of AI systems, and the determination of liability for harm caused by AI-driven decisions. By employing doctrinal legal research and drawing upon constitutional principles and judicial precedents, the study emphasises the necessity of a balanced, flexible, and human-centric regulatory framework. It ultimately advocates a harmonised, risk-based approach to AI governance that effectively safeguards fundamental rights while fostering responsible innovation and technological progress. The study concludes by recommending a risk-based, human-centric, and harmonized approach to AI governance.