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Fears surrounding AI are hitting a fever pitch. Rogue agents are running rampant, and even the industry\u2019s top figures \u2013 Amodei, Altman, and Musk \u2013 are leading calls for a slowdown in development. With public and investor trust on a precipice, the administration has signaled it\u2019s ready to step in with an AI czar to keep an eye on things. But I worry it won\u2019t be enough.<\/p>\n
The next \u201cHugging Face\u201d could be the final push that spurs a mass investor withdrawal from the very companies propping up the US economy. In my view, the government must get ahead of that curve by establishing a full-fledged Department of AI, rather than leaving it to a single individual. Frankly, the country\u2019s economy could depend on it.<\/p>\n
The ongoing AI boom is undoubtedly one of its main drivers. Hundreds of billions of dollars have been poured into the buildout, and not just into AI labs and models, but data centers, semiconductor chips, and so on. Amazon, Meta, Alphabet, and Microsoft alone invested a staggering $400 billion in 2025 \u2013 and that was just on data centers.<\/p>\n
It\u2019s partly this massive expenditure that\u2019s fueling a US bull run, with the stock market hitting record highs and AI profits piling up. Every dollar poured in weaves the technology\u2019s success and the US economy tighter and tighter together.<\/p>\n
While sentiment is positive and the cash is flowing, this is a good thing. Now, however, the mood is turning. We\u2019ve already seen semiconductor stocks have a turbulent ride this year, and public pushback against data centers is also continuing to gain momentum.<\/p>\n
Trust took another nosedive when OpenAI\u2019s agents attacked Hugging Face this summer and, in a world-first, a rogue model hacked the Australian Government\u2019s website. It was damaged further still with warnings from Anthropic that AI may pose an \u201cexistential\u201d risk to humanity in its recent IPO filing. Few fully understand this technology, and every incident knocks investors\u2019 confidence further. It won\u2019t take much to push them over the edge.<\/p>\n
That\u2019s why government intervention is required. Private operators, like Nvidia, may be able to assist in catching rogue AI models with new software \u2013 like the OpenShell platform they announced just recently \u2013 but there\u2019s only so much a single private company, and \u201cself-regulation,\u201d can do. Just as there\u2019s only so much an individual AI czar can do.<\/p>\n
The President is right to move quickly on this \u2013 and has already started floating some names, suggesting Jay Clayton would be a good fit \u2013 but I\u2019d argue more manpower is an important part of what\u2019s required at this moment.<\/p>\n
What we need is a fully staffed government department, with the mandate and reach to enforce accountability and transparency and its own arm\u2019s-length executive agencies. That might seem like a bold call, but AI is now so significant that we need the equivalent of a Department of Energy or Department of Agriculture to oversee how it fits into individual Americans\u2019 lives and monitor development.<\/p>\n
A Department of AI, and associated agencies, could play an important role in ensuring safety and accountability before and after a new model goes live. Before, they\u2019d ensure a clear, detailed, risk-based framework is in place to guide experimentation and launch. And after, they\u2019d uncover unscrupulous operators, running audits, assessing governance processes and, where necessary, imposing fines.<\/p>\n
Contrary to popular belief, more oversight wouldn\u2019t deter innovation; it would simply ensure it happens in a way that limits risk and margins for error. It would provide a clear framework to experiment within, encouraging creativity and advancement. This is what AI CEOs have been crying out for for some time. They want certainty over what they can and can\u2019t do so they know where they stand, where the boundaries are, and can plan for the future.<\/p>\n
We don\u2019t just need more manpower to monitor and enforce regulation, though; we also need it to draft legislative proposals faster. With teams of civil servants that stay close to AI firms and develop a deeper understanding of the process, we\u2019d see more reactive rules and regulations that keep up with the rapid pace of this technology\u2019s advance.<\/p>\n
The department\u2019s work would reduce AI risk and make another \u201cHugging Face\u201d far less likely, bolstering public and investor trust and lowering the chances of a mass investor exodus that brings the US\u2019s bull market to an end.<\/p>\n
There\u2019s been a lot of talk about the AI bubble, and what happens if it bursts, with some even predicting we could see a 2008-level crisis. I don\u2019t think they\u2019re far off; if investors pull back en masse, it will have catastrophic consequences for the economy.<\/p>\n
That cannot be allowed to come to fruition, and if we\u2019re going to stop it, an AI czar is not enough. We need a Department of AI with the full weight of the government behind it \u2013 a hefty organization with the manpower and teeth to reassure markets, give AI firms clarity, and reinstate public trust. And we need it now.<\/p>\n
The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of <\/em>Fortune.<\/em><\/p>\n<\/div>\n #Department #risk #pushing #U.S #economy #brink<\/p>\n","protected":false},"excerpt":{"rendered":" Fears surrounding AI are hitti… <\/p>\n","protected":false},"author":1,"featured_media":5906,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[9000,860,515,395,6865,752,687],"class_list":["post-5905","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","tag-brink","tag-department","tag-economics","tag-economy","tag-pushing","tag-risk","tag-u-s"],"yoast_head":"\n