This article examines the challenges of regulating artificial intelligence (AI) systems and proposes an adapted model of regulation suitable for AI’s novel features.

Unlike past technologies, AI systems built using techniques like deep learning cannot be directly analyzed, specified, or audited against regulations. Their behavior emerges unpredictably from training rather than intentional design.

However, the traditional model of delegating oversight to an expert agency, which has succeeded in high-risk sectors like aviation and nuclear power, should not be wholly discarded. Instead, policymakers must contain risks from today’s opaque models while supporting research into provably safe AI architectures.

Drawing lessons from AI safety literature and past regulatory successes, effective AI governance will likely require consolidated authority, licensing regimes, mandated training data and modeling disclosures, formal verification of system behavior, and the capacity for rapid intervention.

About the authors

Brian Judge

Research Director, Berkeley Program on Finance and Democracy

Brian Judge is the research director of the Berkeley Program on Finance and Democracy at BESI, where he leads research on how finance drives inequality and erodes democratic governance. His current work focuses central bank digital currencies and using large language models to demystify public budget documents. His first book, Democracy in Default: Finance and the Rise of Neoliberalism in America (Columbia University Press, 2024), explores how finance reshaped American political economy. His next book project, The Economy of Knowledge, examines how economic knowledge both constructs and constrains what can be known about what we call “the economy.” He has published in Policy & Society, New Political Economy, and the Cambridge Journal of Economics. Brian holds a Ph.D. in political science from UC Berkeley and was a policy fellow at the Center for Human-Compatible Artificial Intelligence. Before academia, he was a portfolio analyst at a hedge fund.

Mark Nitzberg

Executive Director, Center for Human-Compatible AI

Stuart Russell

Distinguished Professor of Computer Science, UC Berkeley