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Regulatory Capture
Regulatory capture occurs when regulated industries or special interests gain disproportionate influence over the agencies tasked with overseeing them, leading to rules that favor industry interests rather than public welfare. In AI governance, this risk is significant because well-resourced tech companies may shape AI regulations to their advantage while smaller competitors and public interest concerns are marginalized. Organizations implementing AI compliance programs must recognize that captured regulators may produce inconsistent or industry-friendly standards, requiring them to maintain independent ethical review processes beyond minimum regulatory requirements.
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