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Artificial Intelligence Exposes Shortcomings of Traditional Regulatory Paradigms

Strategic Insights

— 1 min read

Research from Audencia Business School in Nantes, France, has identified the limitations of traditional regulatory frameworks in the face of artificial intelligence. The study, "Rethinking Technology Regulation In the Age of Ai Risks," highlighted the need for risk-informed, technology-specific governance to address AI's opacity, autonomy, and systemic risks. The research proposes a tripartite framework to distinguish functional, structural, and relational risks and emphasizes the importance of global coordination and interdisciplinary research to inform anticipatory, participatory, and ethically grounded regulation.

Key Takeaways:

  • The study argues that artificial intelligence exposes the shortcomings of traditional regulatory paradigms, challenging Easterbrook's 'Law of the Horse' view that general legal principles suffice.
  • The research identifies the "pacing problem," where innovation outstrips regulatory capacity, and proposes a tripartite framework to address this issue.
  • The study contrasts EU, US, UK, and Chinese approaches to AI regulation, highlighting divergent logics of precaution, market oversight, hybrid flexibility, and state control.
  • Effective governance requires embedding risk into policy design through adaptive, proportionate, and harmonised mechanisms.
  • The research underscores the urgency of global coordination and calls for interdisciplinary research to inform anticipatory, participatory, and ethically grounded regulation.
  • The study concludes that traditional regulatory frameworks are insufficient to address the risks associated with artificial intelligence.
  • The research recommends a more risk-informed, technology-specific approach to governance, distinguishing functional, structural, and relational risks.
  • The study highlights the importance of embedding risk into policy design to balance innovation with accountability.

Statistics:

  • According to the research, the "pacing problem" refers to the issue of innovation outstripping regulatory capacity.
  • The study cites a comparative analysis of EU, US, UK, and Chinese approaches to AI regulation, highlighting divergent logics of precaution, market oversight, hybrid flexibility, and state control.
  • The research concludes that effective governance requires adaptive, proportionate, and harmonised mechanisms to address AI risks.
  • The study emphasizes the importance of global coordination and interdisciplinary research to inform anticipatory, participatory, and ethically grounded regulation.

Sources:

  • Rethinking Technology Regulation In the Age of Ai Risks. Journal of Information Technology, 2025;40(3):236-245.
  • Journal of Information Technology. Contact information: Sage Publications Ltd, 1 Olivers Yard, 55 City Road, London EC1Y 1SP, England.
  • Audencia Business School. Contact information: 8 Rte Joneliere, F-44300 Nantes, France.
  • Wendy L. Currie, Jan Marco Leimeister, Daniel Schlagwein, and Leslie Willcocks. Additional authors for the research.

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