Making regulation flexible for the governance of disruptive innovation: A comparative study of AVs regulation in the United Kingdom and South Korea

Abstract

Many governments find it challenging to set up a regulatory regime to govern rapidly developing Autonomous Vehicles (AVs) technologies empowered by Artificial Intelligence. This paper analyzes flexible regulation as a tool for assessing regulatory reforms that govern disruptive innovations such as AVs. After defining flexible regulation as regulation that gives regulated entities choices for how to comply with the regulatory objectives, this paper develops Regulatory Flexibility Indicators (RFI) for rule structure, enforcement structure, and regulatory feedback. We study AVs regulatory reforms that took place recently in the United Kingdom and South Korea, focusing on how such reforms have enhanced regulation flexibility. This paper finds that regulatory governance in the United Kingdom is more flexible than in South Korea, indicating aspects of further reforms for improving regulatory flexibility.