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Coalition-Based Digital Governance in the Era of AI

Author

Listed:
  • Snower, Dennis
  • Twomey, Paul

Abstract

This article argues that the governance of artificial intelligence (AI) requires a fundamental institutional redesign rather than incremental regulatory reform. Existing frameworks fail due to structural misalignment with AI’s autonomy, compositionality, and concentration dynamics. In a context where global coordination is infeasible and national regulation insufficient, the paper advances coalition-based digital governance as a second-best yet effective solution. It develops a comprehensive architecture grounded in Control–Accountability–Protection (CAP), operationalized through interoperable standards, data-control infrastructure, and coordinated enforcement. The article further proposes layered guardrails—including trade-based compliance, soft-power monitoring, and hard-power sanctions—to ensure enforceability and redress across jurisdictions.

Suggested Citation

  • Snower, Dennis & Twomey, Paul, 2026. "Coalition-Based Digital Governance in the Era of AI," CEPR Discussion Papers 21564, Centre for Economic Policy Research.
    • Handle: RePEc:cpr:ceprdp:21564
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    File URL: https://cepr.org/publications/DP21564
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    More about this item

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • F55 - International Economics - - International Relations, National Security, and International Political Economy - - - International Institutional Arrangements
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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