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Copyright © 2018 Deloitte Development LLC. All rights reserved.
Agile GovernancePrinciples, tools and technologies for today’s government
William Eggers, Deloitte, @wdeggers
Copyright © 2018 Deloitte Development LLC. All rights reserved.
Artificial Intelligence
Machine learning
Big data analytics
Distributed ledger technology
Internet of Things
3D printing manufacturing
Sharing economy
Self-driving vehicles
Technological and business model advancements are creating a sea of change in today’s regulatory environment…
These developments create challenges for traditional policy, governance and regulatory models
Government trends
AI Augmented Government Government venturing Beta government
Thinking in 3D Sandboxes Crowdsourced innovation
TH
How do regulators regulate emerging technologies?
How do regulators deploy the toolkit to enforce regulations
Data Privacy
Drones
Autonomous vehicles
Stage #1Pre-regulatoryWhat do we have now?
Stage #2Testing and evaluation When to regulate?
Stage #3Regulatory approach How to regulate?
Stage #4 RevisitWhat has changed?
Artificial Ridesharing IntelligenceBlockchain
Minimum government regulation
Light precautionary regulation
Strong precautionary regulation
The regulatory spectrum
The Four Stages Encourage innovation and protect customers by addressing these four critical questions
FEW MANY
LIVE(action,
immersive, concrete)
LAB (simulated, abstract)
Sandboxes
Accelerators/Incubators
RCTs, A/B testing
Foresight
SurveysPolicy/RegSimulations
Co-creation
Workshops
Prototyping
Business models
Policy outcomes
EXPERIMENTATION
Pilots
Consultations
Crowdsourcing Policy
Challenges
Nudges
Design Thinking
Hackathons
Shared economy
Platforms
Two sided markets
Cloud- machine learning
platforms
Industry 4.0
AI/ Data driven
technologies
Value chains to ecosystems
Regulation High Government
Low Government
Strong precautionary
Legislations
Outcome based regulation
Risk based regulation
Collaborative regulation
Pre-certification
Public private partnerships
Collaborative governance ecosystem
Third party certification
Private standard setting
Guidelines
Best practice guidance
Good practices guidance
Self regulation
Codes of conduct
Permission for innovation
Advisory opinions
Sof
t la
ws
The Agile Model
Permissible innovation
Data Privacy
Drones
Autonomous vehicles
Stage #1Pre-regulatoryWhat do we have now?
Stage #2Testing and evaluation When to regulate?
Stage #3Regulatory approach How to regulate?
Stage #4 RevisitWhat has changed?
Artificial Ridesharing IntelligenceBlockchain
Minimum government regulation
Light precautionary regulation
Strong precautionary regulation
The regulatory spectrum
The Four Stages Encourage innovation and protect customers by addressing these four critical questions
UAS regulatory landscape for selected countries and US states
Seeming Regulatory
Regime Paradigms
Country National UAS Regulator
UAS Allowance
United States Federal Aviation Authority
Australia Civil Aviation Safety Authority
United Kingdom Civil Aviation Authority
UAS Restriction
Israel Civil Aviation Authority of Israel
India Directorate General of Civil Aviation
Nigeria Nigerian Civil Aviation Authority
Allowance Restriction
How can regulators address these challenges?Principles of the Future of Regulation
Adaptive regulationShift from “regulate and forget” to a responsive, iterative approach
3
12
45
3
12
45
Regulatory sandboxesPrototype and test new approaches by creating sandboxes and accelerators
Outcome-based regulationFocus on results and performance rather than form
Risk-weighted regulationShift from one-size-fits-all regulation to a data-driven, segmented approach
Collaborative regulationAlign regulation nationally and internationally by engaging a broader set of players across the ecosystem
Source: Deloitte analysis| Data updated as of May 28, 2018
Map of fintech
regulatory sandboxes
Consumer Financial Protection Bureau
As part of its Digital Health Innovation Action Plan, the FDA created a Pre-Cert pilot program for eligible digital health developers that demonstrate a culture of quality and organizational excellence.
FDA also intends to monitor the performance of these companies continuously, with real-world data.
For some digital health products, the FDA is using risk-based approaches that balance potential risks with patient benefits.
Source: Food and Drug Administration
H
How do regulators regulate emerging technologies?
How do regulators deploy the toolkit for delivery and operations?
Personnel shortages
Backlogs
Licensing and permitting demands
Reducing compliance costs
Rationalizing regulations
What are the challengesOperational challenges
1990s
Rise of outcome-based regulation
2000s
Use of basic data analytics to
detect customs and tax frauds
2004-05
The use of big data analytics to detect fraud and abuse in welfare programs
2010
Greater use of big data analytics
2015-16
Regulators begin to use
RPA to automate processes
2017-18
Launch of Behavioral
Insights Team (Nudge Unit) in
UK
Creation of first fintech
sandbox
Regulators begin to use AI and ML
in various applications
NZ pilots Legislation-as-
code
Use of online portal to interact with regulated entities (eGov)
2020 2025 and beyond
Regulators combine intelligent automation and AI
Tools, technologies and new regulatory approaches come
together
Many legislation transformed into digital
codes
Historical and future landscape of regulatory approaches and tools
Adaptive regulations
Major economies sign multilateral
agreement on free data flows across
borders
Launch of eRulemkaing
Program
Technology ToolsBusiness Tools
The Regulator’s toolkit
Artificial Intelligence
Big data & analytics
Robotic Process Automation
Augmented Reality
Nudges
Sandboxes Crowdsourcing
Customer experience toolkit
Blockchain
Unmanned air vehicles
Internet of Things
Increasing internal efficiency
Improving regulatory effectiveness
Reducing the compliance burden
Automating manual tasks
Optimizing inspection and enforcement efforts
Analyzing large volumes of public comments
Anticipating problems and sensing disruption
Fighting fraud
Rethinking outreach
Nudging compliance
Rationalizing and streamlining regulations
Reducing the reporting burden
Improving the government to business experience
What do regulators want to achieve?
17 Copyright © 2017 Deloitte Development LLC. All rights reserved.
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Contact
William D. EggersExecutive Director, Deloitte Centerfor Government Insights+1 571 882 [email protected]: @wdeggers
Copyright © 2018 Deloitte Development LLC. All rights reserved.
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