Economist op-ed: Shift from minimising to managing AI risk
The authors contend that current governance frameworks for artificial intelligence are ill-equipped for the pace of innovation, calling for a strategic pivot in how regulators approach emerging tech.
Gus O’Donnell and Sharon White have argued that outdated regulation poses a threat to artificial intelligence technologies comparable to the risks posed by the technologies themselves. In an opinion piece published by The Economist on 23 June 2026, the authors contend that the current regulatory landscape is failing to keep pace with rapid technological advancement, creating a governance gap that could stifle innovation or leave critical vulnerabilities unaddressed.
The central thesis presented by O’Donnell and White is a call for a fundamental shift in regulatory philosophy. Rather than attempting to minimise risk through restrictive measures, they advocate for a framework focused on actively managing it. This approach suggests that regulators must move away from static rules that may become obsolete quickly, towards more dynamic systems capable of adapting to the evolving nature of AI capabilities.
The piece highlights the tension between the need for safety and the imperative for progress. By characterising outdated regulation as a significant threat, the authors suggest that rigid compliance requirements could inadvertently harm the development of beneficial AI technologies. They argue that a more nuanced approach is required to balance oversight with the freedom necessary for technological growth.
While the article does not specify the exact regulations being criticised, it positions the debate within a broader discussion on AI governance and market regulation. The authors’ perspective underscores the growing concern among industry experts and policymakers that current legal frameworks are ill-suited for the unique challenges presented by artificial intelligence.
The publication of this argument in The Economist reflects a wider conversation about how financial and regulatory institutions should respond to disruptive technologies. As AI continues to integrate into various sectors, the debate over whether to prioritise risk minimisation or risk management is likely to intensify, with implications for how markets and institutions adapt to the new digital economy.
