# kaal:claim:4796714-018

**Claim.** Sector specific AI regulation, though responsive to the distinctive features of each field, produces a patchwork of complex rules that is difficult for developers to navigate and creates barriers to entry for smaller companies lacking compliance resources.

**Type.** failure  **Support.** argued

**Holds when.**

- applies where multiple sector regulators issue separate AI rules
- burden falls hardest on resource constrained firms

**Source quote.**

> While emphasizing sector-specific regulations can be beneficial by addressing the unique characteristics of different fields, this approach can also lead to a patchwork of regulations that are complex and difficult for AI developers to navigate.

**From.** Wulf A. Kaal, *AI Governance* (2024), Challenges, page 30

**Cite as.** Wulf A. Kaal, AI Governance (2024). SSRN: https://ssrn.com/abstract=4796714

**Verify.** sha256 of source PDF `59fa63bae179e8f9b6b8efbdf90cee28400276512a1b04f9f579a48641305c93` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202024%20-%20AI%20Governance.pdf

**Failure mode.** regulatory patchwork burden  (family: harmonization-and-standardization-failure)

**Topics.** risk-and-incentives, compliance

**Keywords.** sector-specific-regulation, regulatory-fragmentation, barriers-to-entry, compliance-cost

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