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Current regulations on powerful AI capabilities are narrowly focused on "foundation" or "frontier" models. However, these terms are vague and inconsistently defined, leading to an unstable foundation for governance efforts. Critically,…
Foundation models and generative artificial intelligence (AI) exacerbate a core regulatory challenge associated with AI: its heterogeneity. By their very nature, foundation models and generative AI can perform multiple functions for their…
Appropriately regulating artificial intelligence is an increasingly urgent and widespread policy challenge. We identify two primary, competing problem. First is a technical deficit: Legislatures and regulatory face significant challenges in…
Foundation models - models trained on broad data that can be adapted to a wide range of downstream tasks - can pose significant risks, ranging from intimate image abuse, cyberattacks, to bioterrorism. To reduce these risks, policymakers are…
The advent of ChatGPT has sparked over a year of regulatory frenzy. However, few existing studies have rigorously questioned the assumption that, if left unregulated, AI chatbot's output would inflict tangible, severe real harm on human…
This paper argues that market governance mechanisms should be considered a key approach in the governance of artificial intelligence (AI), alongside traditional regulatory frameworks. While current governance approaches have predominantly…
As demonstrated during the recent financial crisis, regulators require additional analytical tools to assess systemic risk in the financial sector. This paper describes one such tool; namely a novel market modeling and analysis capability.…
The rise of foundation models has driven the emergence of AI supply chains, where upstream foundation model providers offer fine-tuning and inference services to downstream firms developing domain-specific applications. Downstream firms pay…
Regulatory frameworks, such as the EU AI Act, encourage openness of general-purpose AI models by offering legal exemptions for "open-source" models. Despite this legislative attention on openness, the definition of open-source foundation…
A spirited debate is taking place over the regulation of open foundation models: artificial intelligence models whose underlying architectures and parameters are made public and can be inspected, modified, and run by end users. Proposed…
With the advent of foundation models like ChatGPT, educators are excited about the transformative role that AI might play in propelling the next education revolution. The developing speed and the profound impact of foundation models in…
Regulation of advanced technologies such as Artificial Intelligence (AI) has become increasingly important, given the associated risks and apparent ethical issues. With the great benefits promised from being able to first supply such…
The AI development community is increasingly making use of hosting intermediaries such as Hugging Face provide easy access to user-uploaded models and training data. These model marketplaces lower technical deployment barriers for hundreds…
In a market system, regulations are designed to prevent or rectify market failures that inhibit fair exchange, such as monopoly or transactions with hidden costs. Because regulations reduce profits to those possessing unfair advantage,…
The dynamics of financial markets are driven by the interactions between participants, as well as the trading mechanisms and regulatory frameworks that govern these interactions. Decision-makers would rather not ignore the impact of other…
Recent evidence, both in the lab and in the wild, suggests that the use of generative artificial intelligence reduces the diversity of content produced. The use of the same or similar AI models appears to lead to more homogeneous behavior.…
We propose a new model for regulation to achieve AI safety: global regulatory markets. We first sketch the model in general terms and provide an overview of the costs and benefits of this approach. We then demonstrate how the model might…
AI systems have found a wide range of application areas in financial services. Their involvement in broader and increasingly critical decisions has escalated the need for compliance and effective model governance. Current governance…
We examine whether and how granular, real-time predictive models should be integrated into central banks' macroprudential toolkit. First, we develop a tractable framework that formalizes the tradeoff regulators face when choosing between…
Industry actors in the United States have gained extensive influence in conversations about the regulation of general-purpose artificial intelligence (AI) systems. Although industry participation is an important part of the policy process,…