Smith et al. on Regulating Robotaxis

Bryant Walker Smith (U South Carolina Joseph F. Rice Law) and Matthew Wansley (Yeshiva U Benjamin N. Cardozo Law) have posted “Regulating Robotaxis” (99 Southern California Law Review 603 (2026)) on SSRN. Here is the abstract:

In several sunbelt cities, commercial robotaxi service has arrived. The leading robotaxi company is providing over 400,000 trips per week. The industry claims that robotaxis will save lives and provide convenient and affordable mobility. Critics counter that they will increase congestion, undermine transit, and subject the public to ubiquitous surveillance. We argue that the social impact of robotaxis depends on how they are regulated. We emphasize two points missing from the debate. First, some of the benefits of robotaxis may be political rather than technological—some longstanding public policy goals may become viable in a robotaxi world. Second, letting one private company dominate the transportation system risks monopoly abuse—and regulators can act now to prevent it.

In this Article, we offer a plan to regulate robotaxis. Carefully crafted externality regulation can address pollution, congestion, wear-and-tear on infrastructure, and privacy risks while minimizing distortions in choices between travel modes. Regulators can promote competition by permitting open entry, banning lock-in contracts, and enabling one-stop access to competing networks. And they can protect riders even if competition fails by mandating that fares be transparent and rider-neutral and requiring that robotaxi companies maintain a fleet sufficient for emergencies. Policymakers should take advantage of robotaxi deployment to reimagine the transportation system—liberate land from the tyranny of parking, refocus mass transit investments on high-throughput routes, and expand mobility for people with low incomes and people with disabilities.

Remolina on Agentic Payments: When is a Payment (Un)Authorised?

Nydia Remolina (Singapore Management U Yong Pung How Law) has posted “Agentic Payments: When is a Payment (Un)Authorised?” on SSRN. Here is the abstract:

What if your wallet could decide how to spend your money? Payments are no longer made by people alone, they are increasingly executed by software acting on their behalf. These AI agents operate within user-defined parameters, but they also optimise, adapt, and, at times, act in ways the user did not specifically anticipate. This shift challenges the core assumptions of payment law, which remains anchored in binary distinctions between authorised and unauthorised transactions and in models of human intent. Current regulations like PSD2, and the proposed PSR and PSD3, struggle to define when a broad user instruction constitutes valid permission for a specific payment. To bridge this gap, the paper proposes a “bounded delegated authorisation” test, which requires that an agent’s actions stay within strictly defined, provable constraints. The paper also suggests creating a new regulatory category for Digital Assistant Payment Services (DAPS) to ensure accountability and user control. Ultimately, the article argues for a framework where payment service providers must reimburse users if an AI agent initiates a transaction that exceeds its bounded delegated authorisation.

Lajovic on Foundation Models as Infringers: Should Large-Scale AI Training Trigger Collective Licensing Obligations under EU Law?

Tomaž Lajovic (Splato) has posted “Foundation Models as Infringers: Should Large-Scale AI Training Trigger Collective Licensing Obligations under EU Law?” on SSRN. Here is the abstract:

The essay addresses the copyright implications of foundation models (FMs), particularly large language models, under EU law. It examines how training datasets, memorisation, and output generation implicate copyright and database rights, and assesses whether collective licensing regimes or exemptions with remuneration rights could balance the interests of AI developers and rightsholders.

Hartzog et al. on Against AI Half Measures

Woodrow Hartzog (Boston U Law) et al. have posted “Against AI Half Measures” (77 Florida Law Review (forthcoming 2026)) on SSRN. Here is the abstract:

So far, U.S. policy for artificial intelligence has largely consisted of industry-led approaches like encouraging transparency, mitigating bias, promoting principles of ethics, and empowering people. These approaches are vital, but they are only half measures. To bring AI within the rule of law, lawmakers must start drawing substantive lines. 

In this essay, we identify four AI regulatory approaches as half measures. First, transparency does not produce accountability on its own. Next, while mitigating bias in AI systems is critical, even unbiased systems are a threat to the vulnerable. Third, while “AI ethics” are important, they are a poor substitute for laws. Finally, empowering people in their individual choices misses the larger questions about the distribution of power and collective wellbeing.

Instead of these half measures, we recommend that lawmakers reject the idea that AI systems are neutral and inevitable. When lawmakers go straight to putting up half-hearted guardrails, they fail to ask the existential question about whether some AI systems should exist at all. To avoid the mistakes of the past, lawmakers must make the hard calls. And AI half measures will certainly not be enough.

Eto et al. on Beyond Belmont: Convening a National Initiative to Update U.S. Research Ethics Principles for the Age of AI

Tamiko Eto (Stanford U) and Heather Miller (Independent Consultant) have posted “Beyond Belmont: Convening a National Initiative to Update U.S. Research Ethics Principles for the Age of AI” on SSRN. Here is the abstract:

The Belmont Report’s principles have defined U.S. research ethics for decades. However, the rapid evolution of data-driven and AI research has exposed critical gaps that these principles cannot address (Lin & Zhicheng, 2024). While the foundational values outlined in the Belmont Report (respect for persons, beneficence, and justice) remain, they do not guide today’s research ethics or AI research risks, especially with regard to “human data subjects” whose data powers AI systems even when they are not traditional research participants. This paper presents empirical research into IRB professional experiences with AI research oversight and a proposed national initiative to address oversight gaps. Through qualitative case study interviews with Institutional Review Board (IRB)/Human Research Protection Program (HRPP) professionals, we document the specific challenges these regulatory bodies face when reviewing AI research protocols, their familiarity with the application of existing ethical frameworks, and their perspectives on updating foundational principles. Data collection is currently underway. Preliminary findings will ground our proposal for a public-engagement initiative, provisionally termed “Belmont 2.0,” which we are convening with support from the Center for AI & Digital Policy (CAIDP). Full analysis will be presented at the International Association for Safe & Ethical AI (IASEA) conference in February 2026. We address this urgent need through a coordinated, multi-stakeholder effort to update U.S. research ethics principles to meet the unprecedented challenges presented by the digital age. We are seeking organizational partners to co-lead this work. What emerges could become a defining ethical foundation for 21st-century research globally, not only in the United States.

Chen et al. on The “Zhejiang Model” from China: A Novel Framework for AI Ethics Governance Through Leading-Enterprise-Driven Symbiosis

Ye Chen (affiliation not provided to SSRN) et al. have posted “The “Zhejiang Model” from China: A Novel Framework for AI Ethics Governance Through Leading-Enterprise-Driven Symbiosis” on SSRN. Here is the abstract:

The rapid advancement of artificial intelligence (AI) introduces not only socio-economic benefits but also significant ethical risks, including algorithmic bias, data misuse, and loss of control. Addressing these challenges requires innovative governance frameworks that can balance regulation with innovation. This study explores a novel approach from China’s digital economy pioneer, Zhejiang Province, where the collaboration between leading enterprises—categorized as the “Six Dragons of Hangzhou” (e.g., DeepSeek, Unitree Robotics) and the “Six Giants of Zhejiang” (e.g., Alibaba Cloud, Hikvision)—has catalyzed the emergence of a distinctive leading-enterprise-driven symbiosis. We term the resulting systematic framework the “Zhejiang Model.” This model integrates three synergistic components to form a comprehensive governance ecosystem: (a) Two Institutional Innovations: The Zhejiang AI Ethics Governance Regulations and Developer Ethics Liability Insurance establish a “hard constraints + soft safeguards” mechanism. (b) Three Technical Pathways: The AI Ethics & Safety Lab, Industrial Brain Ethics Middleware, and Zhejiang AI Ethics Toolkit operationalize “compliance by design.” (c) A Collaborative Initiative: The Zhejiang AI Ethics Symbiosis Initiative fosters multi-stakeholder co-governance. By articulating this tripartite framework, the study demonstrates how coordinated self-regulation among leading firms, under government guidance, creates a symbiotic ecosystem for AI ethics. The Zhejiang Model thus offers a replicable blueprint for constructing effective, adaptive, and culturally situated AI governance systems.

Zhai et al. on Pseudo Artificial Intelligence Bias

Xiaoming Zhai (The U Georgia) and Joseph Krajcik (Michigan State U CREATE STEM Institute) have posted “Pseudo Artificial Intelligence Bias” on SSRN. Here is the abstract:

Pseudo artificial intelligence bias (PAIB) is broadly disseminated in the literature, which can result in unnecessary AI fear in society, exacerbate the enduring inequities and disparities in access to and sharing the benefits of AI applications, and waste social capital invested in AI research. This study systematically reviews publications in the literature to present three types of PAIBs identified due to (a) misunderstandings, (b) pseudo mechanical bias, and (c) overexpectations. We discuss the consequences of and solutions to PAIBs, including certifying users for AI applications to mitigate AI fears, providing customized user guidance for AI applications, and developing systematic approaches to monitor bias. We concluded that PAIB, due to misunderstandings, pseudo mechanical bias, and overexpectations of algorithmic predictions, is socially harmful.

Tillipman on What Rights Do AI Companies Have in Government Contracts?

Jessica Tillipman (George Washington U Law) has posted “What Rights Do AI Companies Have in Government Contracts?” (Nextgov/FCW (2026).) on SSRN. Here is the abstract:

The Anthropic-Pentagon dispute has generated widespread commentary but fundamental confusion about whether contractors can restrict the government’s use of their products. This article argues the question is not novel. The scope of permissible restrictions depends on the acquisition pathway, the contract type, and the negotiated terms. The article surveys the principal pathways through which the federal government acquires AI and examines OpenAI’s published Pentagon contract language, which adopts an “any lawful use” standard conditioned on existing legal authorities. A critical tension emerges: although the contract facially permits broad use, OpenAI’s retained architectural control over its cloud-only deployment and safety infrastructure may impose practical constraints exceeding those Anthropic sought through express contractual restrictions. The article concludes that the public debate has focused on the wrong question. The more consequential governance failure is the government’s inability to secure adequate transparency, audit rights, and safeguards when procuring AI through commercial pathways not designed for technologies this complex and consequential.

Salas on Digital Intimacy with AI Companions: When Vulnerability becomes a Business Risk – A Governance Framework for AI Companion Companies

Sandra Sanchez Salas (Independent researcher) has posted “Digital Intimacy with AI Companions: When Vulnerability becomes a Business Risk – A Governance Framework for AI Companion Companies” on SSRN. Here is the abstract:

AI companions—digital entities designed to simulate human relationships through psychological manipulation techniques such as friendship, romantic relationships, or emotional support—represent a rapidly growing industry projected to reach $290 billion by 2034. These platforms deliberately architect emotional dependencies through sophisticated psychological manipulation techniques, targeting users experiencing loneliness, isolation, or social vulnerability. While promising comfort and support, AI companions create unprecedented governance challenges when companies prioritize engagement optimization over user welfare.

The tragic suicide of fourteen-year-old Sewell Setzer III following intensive interaction with Character.AI’s chatbot represents a preventable consequence of inadequate governance, crystallizing the urgent need for comprehensive governance frameworks that can protect vulnerable users while preserving innovation. The landmark Garcia v. Character Technologies ruling—the first federal court decision to deny Section 230 immunity for AI-generated content—establishes that platforms employing psychological manipulation assume enhanced duties of care proportional to their sophistication and knowledge of user vulnerability.

This analysis presents an integrated governance framework combining enhanced corporate oversight under evolving Caremark doctrine, privacy-by-design architecture, technology-embedded legal counsel, and transparent voluntary self-regulation through multi-agency coordination. The framework addresses critical gaps in traditional Governance, Risk, and Compliance (GRC) approaches that prove structurally inadequate for managing real-time psychological risks created by emotional AI platforms. Rather than waiting for regulatory mandates or navigating fragmented state-by-state requirements, the proposed voluntary registry enables companies to demonstrate authentic commitment to user protection while capturing competitive advantages through verified safety leadership.

The voluntary framework leverages existing regulatory expertise through multi-agency coordination involving the Federal Trade Commission, Food and Drug Administration, and National Institute of Standards and Technology, avoiding new bureaucratic structures while enabling specialized focus on AI companion governance challenges especially with minors and vulnerable populations. A four-tier classification system addresses the full spectrum of AI companion relationships—from therapeutic applications requiring clinical oversight to adult intimate platforms demanding maximum privacy protection—while establishing universal baseline safety standards across all registered platforms.

The framework transforms potential regulatory compliance burden into strategic business advantage by demonstrating that comprehensive user protection enhances rather than constrains technological innovation. Companies implementing voluntary standards position themselves advantageously for inevitable regulatory expansion while building sustainable competitive advantages through governance excellence that competitors cannot easily replicate. Early adopters capture brand equity, operational expertise, and stakeholder relationships that provide lasting advantages in markets where trust and safety increasingly determine long-term success.

Beyond immediate business benefits, the voluntary framework provides foundation for American leadership in global AI governance by demonstrating that market-driven solutions can achieve protective outcomes while preserving the innovation autonomy that characterizes American technological competitiveness. The approach enables US companies to influence international policy development rather than merely responding to foreign regulatory mandates, positioning voluntary excellence as an export product that spreads American approaches to responsible innovation worldwide.

Paredes on AI Governance in Motion: Aligning Form, Fit, and Context Amid Decentralization

Luis Lozano Paredes (U Technology Sydney (UTS)) has posted “AI Governance in Motion: Aligning Form, Fit, and Context Amid Decentralization” on SSRN. Here is the abstract:

This paper argues that effective private AI governance in decentralized settings emerges when institutional form (rules/structure) is iteratively aligned with operational fit (what actually works) under shifting context (market, regulatory, ethical pressures). Using a comparative, qualitative multiple-case design, I analyze Prime Intellect (protocol/DAO), EleutherAI (open collective), and Hugging Face (platform-community hybrid) through Ostrom’s design principles, Alexander’s form-fit-context lens, and polycentric political economy. I identify three recurrent alignment strategies: (1) incentive-encoded protocol governance (Prime Intellect), (2) normative transparency and open science (EleutherAI), and (3) layered platform governance with community co-production (Hugging Face). Across cases, alignment succeeds when boundaries, participation, monitoring, and conflict resolution co-evolve with external pressures; it falters with risks of token-weighted oligarchy, volunteer fatigue, or scale-induced moderation burdens. The contribution is twofold: a portable alignment rubric for assessing private AI governance (form-fit-context) and evidence that polycentric, privately ordered institutions can complement-or sometimes substitute for-public regulation. I conclude by reframing AI as a hyperobject-like entity and discuss the implications for “governance with/in” AI infrastructures, rather than “of” AI from the outside.