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UNU rector warns of 'governance arbitrage' and opacity in AI systems
Summary
Chilizi Marwala described four major governance challenges for AI—governance arbitrage, algorithmic marginalization of rare events, rational opacity, and the need to treat AI as data, algorithms, computing and application rather than a single monolith.
Marwala identified four governance gaps that keep him awake at night. The first he calls "governance arbitrage," where companies or developers shift operations to jurisdictions with weaker rules. "You have arbitrage where people, who do not like a regulation in country a will simply move to country b and make regulation there," he said.
He also flagged algorithmic limitations that marginalize rare events, and what he calls "rational opacity," the problem of systems operating so fast or so complexly that people cannot understand their behavior. "We are supposed to trust systems that are sometimes operating so fast that we cannot be able to even understand what they are saying," he said. Marwala concluded that effective governance should address four linked components—data, algorithms, computing resources and applications—rather than treating AI as one singular entity.
