Transformative AI and the Increase in Returns to Experimentation: Policy Implications

Transformative AI will generate a genius supply shock: abundant, cheap, and fast agents that can outperform human beings across many domains. But society is likely to adapt too slowly to this remarkable but unfamiliar new capability. In this essay, the authors explore two policies—regulatory sandboxes and regulatory holidays— that can help companies, regulators, and individuals learn how to use these powerful new tools and put them to effective use.