With advancement of technological tools, the role of Artificial Intelligence (AI) in maintaining and improving social media platforms is becoming intriguing by each passing day. From content moderation to sentiment analyzing the AI tools are integrated in the day-to-day operations of social media platforms to curate the customized experience to enhance the users' interaction on the platforms. The chapter explores the various AI tools and software understanding their models and functioning to regulate the social media governance. It aims to investigate the influence of AI tools from content creation, marketing advertisements to impact on users' behavior. While discussing the positives of the AI involvement, the chapter also discusses the possible challenges of maintaining user privacy, data security and regulation of fake news. Understanding the role of collaborating governance, the author analyzed various statutes around the world to deal with ethical and legal implications of the AI in social media governance to suggest amicable solutions and way forward.