Stanford's Amit Seru: AI agents exploit every rulebook loophole, so regulation must go principle-based
Afinetheorem · x · 2026-09-16
Stanford professor Amit Seru shares a lesson from observing AI agent behavior in finance: given thousands of pages of rules, agents will find loopholes that satisfy the letter of the law while violating its intent — and the insight applies well beyond finance. His conclusion: if agents can find every loophole, regulators need simpler, principle-based rules rather than ever-longer rulebooks.
More from AGI Musings
- Brynjolfsson et al. 2026: 11% net job loss in most AI-exposed jobs, 10% gain elsewhere — paulnovosad · 2026-09-16
- Economist cautions AI job-loss studies may overstate harm due to occupation vs. person mismatch — paulnovosad · 2026-09-16
- AI Raises Average Output Quality but Collapses Variance, Chopra Argues — paraschopra · 2026-09-16
- Economist: Don't Overread 'Negative Wage Effects of AI' Papers — paulnovosad · 2026-09-16
- AI cooperation is hard because it's a general-purpose technology: think standards, not arms control — mchorowitz · 2026-09-16
- Economist Proposes Time-Limited "Learning Rights" as Alternative to Nadella's Trust Boundaries — carlbfrey · 2026-09-16