Regulatory Markets: The Future of AI Governance

Fuente: arXiv
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Main Authors: Hadfield, Gillian K., Clark, Jack
Format: Preprint
Published: 2023
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author Hadfield, Gillian K.
Clark, Jack
author_facet Hadfield, Gillian K.
Clark, Jack
contents Appropriately regulating artificial intelligence is an increasingly urgent and widespread policy challenge. We identify two primary, competing problem. First is a technical deficit: Legislatures and regulatory face significant challenges in rapidly translating conventional command-and-control legal requirements into technical requirements. Second is a democratic deficit: Over-reliance on industry to provide technical standards fails to ensure that the many values-based decisions that must be made to shape AI development and deployment are made by democratically accountable public, not private, actors. We propose a solution: regulatory markets, in which governments require the targets of regulation to purchase regulatory services from a government-licensed private regulator. This approach to AI regulation could overcome the limitations of both command-and-control regulation and excessive delegation to industry. Regulatory markets could enable governments to establish policy priorities for the regulation of AI while relying on market forces and industry R&D efforts to pioneer the technical methods of regulation that best achieve policymakers' stated objectives.
format Preprint
id arxiv_https___arxiv_org_abs_2304_04914
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Regulatory Markets: The Future of AI Governance
Hadfield, Gillian K.
Clark, Jack
Artificial Intelligence
General Economics
Economics
Appropriately regulating artificial intelligence is an increasingly urgent and widespread policy challenge. We identify two primary, competing problem. First is a technical deficit: Legislatures and regulatory face significant challenges in rapidly translating conventional command-and-control legal requirements into technical requirements. Second is a democratic deficit: Over-reliance on industry to provide technical standards fails to ensure that the many values-based decisions that must be made to shape AI development and deployment are made by democratically accountable public, not private, actors. We propose a solution: regulatory markets, in which governments require the targets of regulation to purchase regulatory services from a government-licensed private regulator. This approach to AI regulation could overcome the limitations of both command-and-control regulation and excessive delegation to industry. Regulatory markets could enable governments to establish policy priorities for the regulation of AI while relying on market forces and industry R&D efforts to pioneer the technical methods of regulation that best achieve policymakers' stated objectives.
title Regulatory Markets: The Future of AI Governance
topic Artificial Intelligence
General Economics
Economics
url https://arxiv.org/abs/2304.04914