In this complex environment, regulators find themselves allocating increasing amounts of staff time and funding to understanding the business dynamics and regulatory implications of new markets and industries. Read more from the Government and public services collection
2Įxplore the Future of Regulation collection “We need much more agile legislation and rule setting because it is difficult for the political community to cope with the fast technological progress,” says Schwab. 1 In the wake of this technological revolution, Klaus Schwab, WEF founder and executive chairman, calls for government leaders to adopt more agile governance approaches. The emergence of what the World Economic Forum (WEF) has dubbed the “Fourth Industrial Revolution” is leading to the convergence and fusion of these technologies, in turn blurring the lines between the physical and digital world. New technologies keep emerging and evolving, disrupting traditional business models and posing fundamental challenges for regulatory agencies striving to protect consumers while allowing for innovation. Technological advances such as artificial intelligence (AI), machine learning, big data analytics, distributed ledger technology (blockchain), and the Internet of Things (IoT) are forcing them to reexamine the basic principles of their work. You can hardly blame regulators for feeling overwhelmed these days. New technologies and methods can help regulators operate efficiently and effectively, reducing compliance costs and improving the business experience. Regulating complex environments needn’t be cumbersome or expensive.