Regulating New Tech: Problems, Pathways, and People

Abstract

New technologies bring with them many promises, but also a series of new problems. Even though these problems are new, they are not unlike the types of problems that regulators have long addressed in other contexts. The lessons from regulation in the past can thus guide regulatory efforts today. Regulators must focus on understanding the problems they seek to address and the causal pathways that lead to these problems. Then they must undertake efforts to shape the behavior of those in industry so that private sector managers focus on their technologies’ problems and take actions to interrupt the causal pathways. This means that regulatory organizations need to strengthen their own technological capacities; however, they need most of all to build their human capital. Successful regulation of technological innovation rests with top quality people who possess the background and skills needed to understand new technologies and their problems.

Keywords: Regulation, technology, innovation, digital economy, new tech, fintech, regtech, computers, artificial intelligence, machine learning, algorithms, antitrust, competition, liability, administrative law, public administration, business, strategy