A prominent management scholar is arguing that the United States should regulate artificial intelligence the way it regulates aviation—through a single federal agency that pairs safety oversight with industry promotion.
July 20, 2026 · AI Governance
Regulate AI Like We Regulate Aviation
A Yale management scholar argues the U.S. should govern frontier AI through a single federal agency modeled on the FAA — pairing safety certification with industry promotion, instead of today's patchwork of state laws and executive orders.
1
Proposed federal agency to concentrate AI safety & rules
3
Frontier-lab CEOs now publicly backing regulation
0
Comprehensive federal AI statutes in place today
The pressure from abroad
Kimi K3 shows how fast capability escapes one jurisdiction
Parameters
2.8T
open-weight model
Price / M tokens
$3 / $15
input / output
Which institutional model? — CEOs and advocates diverge
FAA-style
Single agency; safety certification + industry promotion
FINRA-style
Industry self-regulation
IAEA-style
International oversight body
The case for
A dual mandate keeps flying safe and the sector thriving — concentrating expertise and rules in one body could protect the public without smothering innovation.
The warning
A certification-heavy regime could ossify into a cartel-like system — entrenching incumbents and raising barriers for smaller players.
THE UNRESOLVED QUESTION
There's growing consensus that executive orders plus a mosaic of state rules won't keep pace with a fast-moving global market. What remains open is which model balances safety against competitiveness — as aviation authorities in the U.S. and EU already begin certifying AI in high-stakes settings.
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