Abstract: Generative artificial intelligence (GAI) is increasingly embedded in organizations, presenting a wealth of opportunities alongside significant governance challenges. While we have yet to fully understand such challenges in traditional organizational contexts, a next generation of GAI challenges is swiftly emerging through the increasing integration of GAI with Web3. Such integration captures the automation and workflows that enable autonomous AI decision making, signaling major disruptions to conventional corporate, regulatory, and legal governance regimes. In this study, we engage in prospective theorizing to articulate a utopian future of GAI that accounts for its inevitable co-existence with other disruptive innovations such as Web3. Through two waves of data collection with a variety of industry experts, we outline X anticipated governance challenges and illustrate how such challenges are already notable in the “digital undertows”. Responding to calls in the information systems (IS) literature for pro-active future-oriented investigations, our study provides tangible recommendations for establishing appropriate governance mechanisms that empower bothscholars and practitioners to take a proactive approach in sculpting a utopian vision for a future that anticipates the co-existence of advanced GAI and Web3. Building on these insights, we propose an agenda for future research in this domain.