In its analysis, Burges Salmon argues that artificial intelligence (AI) is set to become a foundational component of the fifth wave of regulatory innovation (ACA5). The firm suggests that AI’s growing influence will shape not only how regulations are enforced but also how they are designed and implemented — making governance more dynamic and responsive than ever before.
One big part of their vision is that AI will enable smarter, data-driven regulatory systems. Instead of relying purely on static rules, regulators can use AI models to simulate outcomes, detect risks in real time, and even adapt regulations based on changing patterns. This could help regulators anticipate problems before they become crises and fine-tune their approaches more proactively.
Burges Salmon also warns that with these opportunities come novel legal and ethical risks. AI’s capacity to make automated decisions raises questions around accountability, transparency, bias, and liability. The firm emphasizes that new regulatory frameworks will need to address these challenges — for instance, by clarifying who is responsible when an AI system causes harm, and by insisting on explainability in high-stakes contexts.
Finally, the firm underscores the need for collaborative governance: bringing together regulators, AI developers, businesses, and civil society. They argue that effective AI-integrated regulation will require multidisciplinary input, rigorous oversight, and flexible legal structures that can evolve as the technology itself changes. This, they believe, is the promise and the challenge of the next era of regulation.
