Regulating autonomous and agentic AI

2026-07-23

AI Summary

This study addresses the inadequacy of traditional regulatory frameworks in managing challenges posed by autonomous and embodied AI systems, including shifts in knowledge and control, systemic risks, and the failure of ex post oversight. By comparatively analyzing regulatory approaches in the UK—spanning content platforms, data protection, and financial services—and the EU AI Act, and integrating insights from AI governance theory, the project develops an adaptive regulatory model tailored to AI autonomy. It innovatively extends regulation to encompass the AI supply chain, shifting oversight from reactive responses toward proactive intervention. The resulting framework offers regulators actionable institutional designs that significantly enhance their capacity to identify and mitigate risks associated with highly autonomous AI systems.

Abstract

Regulating activities where regulatees use autonomous and agentic AI is challenging. Regulatory assumptions about regulatee knowledge and control no longer hold true; much of that lies elsewhere in the AI supply chain which thus needs to be brought within the scope of regulation. Governance systems for autonomous AI cannot replicate existing governance models, but need a fresh approach. Retrospective supervisory oversight becomes ineffective as a risk management tool, and AI autonomy generates new systemic risks which require new solutions. This paper investigate four regulatory systems: UK regulation of content platforms, data protection, UK financial services, and the EU AI Act\'92s cross-sectoral regime. It analyses the challenges posed by autonomous and agentic AI and proposes potential solutions which regulators might adopt. These will transform regulation from a reactive process to an active one, and assist it in adapting to the challenges of AI autonomy.

Problem

• autonomous AI
• agentic AI
• regulation
• systemic risk
• AI governance

Innovation

• autonomous AI
• agentic AI
• regulatory transformation
• systemic risk
• AI governance