AI regulation
Recommendations for establishing public funding priorities that support AI safety research and regulatory capacity building.
This evergreen guide outlines practical funding strategies to safeguard AI development, emphasizing safety research, regulatory readiness, and resilient governance that can adapt to rapid technical change without stifling innovation.
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Published by Scott Morgan
July 30, 2025 - 3 min Read
Public funding priorities for AI safety and regulatory capacity must be anchored in clear national goals, credible risk assessments, and transparent decision-making processes. Governments should create cross-ministerial advisory panels that include researchers, industry representatives, civil society, and ethicists to identify safety gaps, define measurable milestones, and monitor progress over time. Funding should reward collaborative projects that bridge theoretical safety frameworks with empirical testing in simulated and real-world environments. To avoid fragmentation, authorities can standardize grant applications, reporting formats, and data-sharing agreements while safeguarding competitive neutrality and privacy. A robust portfolio approach reduces vulnerability to political cycles and ensures continuity across administrations and shifts in leadership.
Essential elements include long-term financing, stable grant cycles, and flexible funding instruments that respond to scientific breakthroughs and emerging risks. Governments should mix core funding for foundational AI safety work with milestone-based grants tied to demonstrable safety improvements, robust risk assessments, and scalable regulatory tools. Priorities must reflect diverse applications—from healthcare and finance to critical infrastructure—while ensuring that smaller researchers and underrepresented communities can participate. Performance metrics should go beyond publication counts to emphasize reproducibility, real-world impact, and safety demonstrations. Regular reviews, independent audits, and sunset clauses will keep the program relevant, ethically grounded, and resistant to the lure of speculative hype.
Invest in diverse, collaborative safety research and capable regulatory systems.
Aligning funding decisions with measurable safety and regulatory capacity outcomes requires a careful balance between ambition and practicality. Agencies should define safety milestones that are concrete, achievable, and time-bound, such as reducing system failure rates in high-stakes domains or verifying alignment between model objectives and human values. Grant criteria should reward collaborative efforts that integrate safety science, risk assessment, and regulatory design. Independent evaluators can audit models, datasets, and governance proposals to ensure transparency and accountability. A clear pathway from fundamental research to regulatory tools helps ensure that funding translates into tangible safeguards, including compliance checklists, risk governance frameworks, and scalable oversight mechanisms.
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A transparent prioritization framework encourages public trust and reduces the risk of misallocation. By publicly listing funded projects, rationales, and anticipated safety impacts, agencies invite scrutiny from diverse communities and experts. This openness fosters a learning culture where projects can be reoriented in light of new evidence, near misses, and evolving societal values. In practice, funding should favor projects that demonstrate multidisciplinary collaboration, cross-border data governance, and the development of interoperable regulatory platforms. Practitioners should be encouraged to publish safety benchmarks, share tooling, and participate in open risk assessment exercises. When the framework includes stakeholder feedback loops, it becomes a living instrument that evolves with technology and public expectations.
Focus on long-term resilience, equity, and international coordination in funding.
Diversifying safety research means supporting researchers across disciplines, regions, and career stages. Public funds should back basic science on AI alignment, interpretability, uncertainty quantification, and adversarial robustness while also supporting applied work in verification, formal methods, and safety testing methodologies. Grants can be tiered to accommodate early-career researchers, mid-career leaders, and seasoned experts who can mentor teams. Additionally, international collaboration should be incentivized to harmonize safety standards and share best practices. Capacity-building programs ought to include regulatory science curricula for policymakers, engineers, and legal professionals, ensuring a shared lexicon and common safety language. Financial support for workshops, fellowships, and mobility schemes can accelerate knowledge transfer.
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Building regulatory capacity requires targeted investments in tools, people, and processes. Governments should fund the development of standardized risk assessment frameworks, auditing procedures, and incident-reporting systems tailored to AI. Training programs should cover model governance, data provenance, bias mitigation, and safety-by-design principles. Funding should also support the creation of regulatory labs or sandboxes where regulators, researchers, and industry partners test governance concepts in controlled environments. By providing hands-on experience with real systems, public funds help cultivate experienced evaluators who understand technical nuances and can responsibly oversee deployment, monitoring, and enforcement.
Develop governance that adapts with rapid AI progress and public input.
Long-term resilience demands funding that persists across political cycles and economic fluctuations. Multi-year grants with built-in escalators, renewal opportunities, and contingency reserves help researchers plan ambitious safety agendas without constant funding erosion. Resilience also depends on equity: investment should reach underserved communities, minority-serving institutions, and regions with fewer research infrastructures so that safety capabilities are distributed more evenly. International coordination can reduce duplicative efforts, prevent standards fragmentation, and enable shared testing grounds for safety protocols. Harmonized funding calls, common evaluation metrics, and joint funding pools can unlock larger, higher-quality projects that surpass what any single country could achieve alone.
Equitable access to funding is essential for broad participation in AI safety research. Eligibility criteria should avoid unintentionally privileging well-resourced institutions and should actively seek proposals from community colleges, regional universities, and public laboratories. Support for multilingual documentation, accessible grant-writing assistance, and mentoring programs expands who can contribute ideas and solutions. Safeguards against concentration of funding in a few dominant players are necessary to maintain a healthy, competitive ecosystem. By embedding equity considerations into the fabric of funding decisions, governments promote diverse perspectives that enrich risk assessment, scenario planning, and regulatory design, ultimately improving safety outcomes for all.
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Concrete steps to start, sustain, and evaluate funding programs.
Adaptive governance acknowledges that AI progress can outpace existing rules, demanding flexible, iterative oversight. Funding should encourage regulators to pilot new governance approaches—such as performance-based standards, continuous monitoring, and sunset reviews—before making them permanent. Mechanisms for public input, expert testimony, and stakeholder deliberations help surface concerns early and refine regulatory questions. Grants can support experiments in regulatory design, including real-time safety dashboards, independent verification, and transparent incident databases. Creating a culture of learning within regulatory agencies reduces stagnation and empowers officials to revise policies in light of new evidence, while still upholding safety, privacy, and fairness as core values.
A practical approach combines pilot programs with scalable standards. Investment in regulatory accelerators enables rapid iteration of risk assessment tools, model cards, and impact analyses that agencies can deploy at scale. Standards development should be co-led by researchers and regulators, with input from industry and civil society to ensure legitimacy and legitimacy remains intact. Grants can fund collaboration between labs and regulatory bodies to test governance mechanisms on real-world deployments, including auditing pipelines, data stewardship practices, and model monitoring. When regulators gain hands-on experience with evolving AI systems, they can craft more effective, durable policies that neither hinder innovation nor yield dangerous blind spots.
To initiate robust funding programs, governments should publish a clear, multi-year strategy outlining aims, metrics, and evaluation methods. Early-stage funding can focus on foundational safety research, with attention to reproducibility and access to high-quality datasets. As the program matures, emphasis should shift toward developing regulatory tools, governance frameworks, and public-private partnerships that translate safety research into practice. A transparent governance trail, including board composition and conflict-of-interest policies, strengthens accountability and legitimacy. Regular stakeholder consultations—especially underserved communities—ensure that funding priorities reflect diverse perspectives and evolving societal values. Finally, mechanisms for independent assessment help identify gaps, celebrate successes, and recalibrate strategies when needed.
Sustained evaluation and learning are essential to maintain momentum and relevance. A mature funding program should implement continuous performance reviews, outcome tracking, and peer-reviewed demonstrations of safety improvements. Feedback loops from researchers, regulators, industry, and the public help refine criteria, recalibrate funding mixes, and update risk taxonomies as AI capabilities evolve. Investment in data infrastructure, secure collaboration platforms, and shared tooling enhances reproducibility and accelerates progress. By embedding learning into every stage—from proposal design to impact assessment—the program remains resilient, inclusive, and capable of supporting AI safety research and regulatory capacity building for the long term.
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