Regulation Tomorrow: What Happens When Technology is Faster than the Law?

Abstract

In an age of constant, complex and disruptive technological innovation, knowing what, when, and how to structure regulatory interventions has become much more difficult. Regulators can find themselves in a situation where they believe they must opt for either reckless action (regulation without sufficient facts) or paralysis (doing nothing). Inevitably in such a case, caution tends to trump risk. But such caution merely functions to reinforce the status quo and the result is that new technologies struggle to reach the market in a timely or efficient manner.

The solution: lawmaking and regulatory design needs to become more proactive, dynamic and responsive. So how can regulators actually achieve these goals? What can they do to promote innovation and offer better opportunities to people wanting to build a new business around a disruptive technology or simply enjoy the benefits of a disruptive new technology as a consumer?

Keywords: Airbnb, Artificial Intelligence, Big Data, Drones, FinTech, Principles, Regulation, Regulatory Sandbox, Robotics, Rules, Uber

JEL Classification: E22, G2, K2, K22, K32, K40, L26, L43, L51, O3, O30, O31, O33