This article presents the various challenges in the current system of AI governance and the correlation between data, algorithm, technology, governance, and geopolitics surrounding its successful implementation. The focal point of the article is the Adaptive-Hybrid AI Governance framework based on technical, ethical, and societal regulatory mechanisms that models trustworthy AI and the risks associated with it. The article highlights the need for trustworthy AI and how major countries are shaping their AI regulatory mechanisms. It presents a case study on AI governance in defence that elucidates ethical AI governance through various use cases.