Regulatory Challenges of AI Application in Watershed Pollution Control: An Analysis Framework Using the SETO Loop

Abstract

The application of Artificial Intelligence (AI) in river basin pollution control shows great potential to improve governance efficiency through real-time monitoring, pollution prediction, and intelligent decision-making. However, its rapid development also brings regulatory challenges, including data privacy, algorithmic bias, responsibility definition, and cross-regional coordination. Based on the SETO loop framework (Scoping, Existing Regulation Assessment, Tool Selection, and Organizational Design), this paper systematically analyzes the regulatory needs and pathways for AI in watershed water pollution control through typical case studies from countries such as China and the United States. The study first defines the regulatory scope, focusing on protecting the ecological environment, public health, and data security. It then assesses the shortcomings of existing environmental regulations in governing AI, such as their inability to adapt to dynamic pollution sources. Subsequently, it explores suitable regulatory tools, including information disclosure requirements, algorithmic transparency standards, and hybrid regulatory models. Finally, it proposes a multi-tiered organizational scheme that integrates international norms, national legislation, and local practices to achieve flexible and effective regulation. This study demonstrates that the SETO loop provides a viable framework for balancing technological innovation with risk prevention and control. It offers a scientific basis for policymakers and calls for establishing a dynamic, layered regulatory system to address the complex challenges of AI in environmental governance.