A New Approach to AI Regulation: Insurance Pricing and Market Audits

ghadfield · x · 2026-07-27

Gillian Hadfield discusses a middle ground for AI regulation where the government issues revocable licenses to organizations that audit AI against market-developed standards. This aligns closely with the "Regulatory Markets" model she proposed with Jack Clark.

She points out that insurers effectively act as regulators through pricing, determining who gets to participate and on what terms. By providing a public outcome to measure AI verification against, insurance coverage can be reinstated to manage risks.

Related event: AI Regulation Idea: Market-based Auditing and Revocable Licenses(2 posts)→

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