Multinational companies that manage data across jurisdictional boundaries are having trouble integrating artificial intelligence systems with multi-cloud architectures. This is especially true since over 90% of businesses use multiple cloud providers and deal with complicated AI governance frameworks. This paper examines how well AI governance frameworks in India and the US deal with multi-cloud data residency compliance issues through a systematic literature evaluation based on PRISMA standards and thematic analysis of 26 publications, including academic articles, government policy papers, and industry reports published between 2020 and 2025. The study points out significant cross-border regulatory coordination problems and examines whether existing bilateral strategies need more ways to work together. The thematic analysis identified trends in regulatory frameworks and compliance problems, revealing "regulatory incommensurability" as a central theme—meaning that following one jurisdiction's rules goes against the basic ideas behind another's procedures. The Digital Personal Data Protection Act in India has a permission-by-default approach, which is very different from the USA's restriction-by-default approach. This leads to impossible compliance situations instead of coordination problems. Organizations face systemic inefficiencies because of duplicate infrastructure and multiple governance systems that do not provide the same level of AI safety or data security. For example, 35% of data breaches include "shadow data" not covered by existing frameworks. The results show that traditional working methods cannot settle significant disagreements between AI governance frameworks. This means that new theoretical approaches are needed that acknowledge valid regulatory differences while making it easier for multinational companies to use AI systems in both jurisdictions.

AI Governance, Data Sovereignty, Multi-Cloud Compliance, Digital Personal Data Protection Act (DPDPA), NIST AI RMF, India-USA Regulatory Comparison, Regulatory incommensurability

Alibašić, H. (2025). Harmonizing artificial intelligence (AI) governance: A comparative analysis of Singapore and France's AI policies and the influence of international organizations. Global Public Policy and Governance, 1-21.

Al-Ruithe, M., Benkhelifa, E., & Hameed, K. (2019). A systematic literature review of data governance and cloud data governance. Personal and Ubiquitous Computing, 23, 839-859.

Atlan. (2023, December 23). Multi-cloud data governance: Five rules for success. https://atlan.com/know/data-governance/multi-cloud-data-governance/

Bahl, R., Bagai, R., & Sumi, K. (2024, March 13). India: Digital Personal Data Protection Act, 2023 part three – data transfers. AZB Partners. https://www.azbpartners.com/bank/india-digital-personal-data-protection-act-2023-part-three-data-transfers/

Batool, A., Zowghi, D., & Bano, M. (2025). AI governance: a systematic literature review. AI and Ethics, 1-15.

Brandis, K., Dzombeta, S., Colomo-Palacios, R., & Stantchev, V. (2019). Governance, risk, and compliance in cloud scenarios. Applied Sciences, 9(2), 320.

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative research in psychology, 3(2), 77-101.

CCPA. (2024). California Consumer Privacy Act. https://www.oag.ca.gov/privacy/ccpa

CISA. (2024). Federal Information Security Modernization Act. https://www.cisa.gov/topics/cyber-threats-and-advisories/federal-information-security-modernization-act

Cloud Security Alliance. (2025, April 22). AI and privacy: Shifting from 2024 to 2025. https://cloudsecurityalliance.org/blog/2025/04/22/ai-and-privacy-2024-to-2025-embracing-the-future-of-global-legal-developments

Electronics and Information Technology. (2023). Digital Personal Data Protection Act. https://www.dpdpa.in/

IBM. (2024). Cost of a data breach report 2024. IBM Security. https://www.ibm.com/reports/data-breach

IBM. (2025). IBM WatsonX Platform: Compliance obligations to controls mapping. https://www.ibm.com/products/blog/ibm-watsonx-platform-compliance-obligations-to-controls-mapping

ITU. (2024). Key findings on the state of global AI governance. https://www.itu.int/hub/2024/07/key-findings-on-the-state-of-global-ai-governance/

Joshi, D. (2024). AI governance in India – law, policy and political economy. Communication Research and Practice, 10(3), 328-339.

Kohler, S. (2025). Technology federalism: US states at the vanguard of AI governance. Carnegie Endowment for International Peace.

Lexology. (2025, January 21). Cross border data transfers under India's proposed data protection regime. https://www.lexology.com/library/detail.aspx?g=d5715e1d-4b25-40b2-a817-38966662c69f

Mathew, A. (2024). Cloud data sovereignty governance and risk implications of cross-border cloud storage. Information Systems Audit and Control Association.

Mohanty, A., & Sahu, S. (2024). India's advance on AI regulation. Carnegie India.

Roberts, H., Hine, E., Taddeo, M., & Floridi, L. (2024). Global AI governance: barriers and pathways forward. International Affairs, 100(3), 1275-1286.

Securiti. (2024, October 29). Cross-border data transfer requirements under India DPDPA. https://securiti.ai/cross-border-data-transfer-requirements-under-india-dpdpa/

Shulan, Y., & Mengting, L. (2024). Global AI governance: Progress, challenges, and prospects. China International Studies, 109, 48.

Stimson Center. (2025). Shaping inclusive AI governance – Reflections on Paris and opportunities for the India AI Summit. https://www.stimson.org/2025/shaping-inclusive-ai-governance-reflections-on-paris-and-opportunities-for-the-india-ai-summit/

Tata Communications. (2024). 7 best practices for multi-cloud governance & compliance. https://www.tatacommunications.com/knowledge-base/best-practices-for-multi-cloud-governance-and-compliance/

TCS. (2024). Data privacy management: Distributed data management solution. TCS White Paper.

TrustCloud. (2024). Cross-border compliance: Navigating globalization challenges in 2024. https://community.trustcloud.ai/article/cross-border-compliance-navigating-globalization-challenges-in-2024/

Walter, Y. (2024). Managing the race to the moon: Global policy and governance in artificial intelligence regulation—A contemporary overview and an analysis of socioeconomic consequences. Discover Artificial Intelligence, 4(1), 14.