Could a Department of AI prevent an AI market crash?

[Nina24]

An opinion piece in The News, Pakistan's English language newspaper, argues that the US needs a full Department of AI to prevent a damaging AI crash. The author is Yerbol Orynbayev, a former deputy prime minister of Kazakhstan and former World Bank governor for the country. His point is that a single AI czar is not enough oversight for an industry that now props up so much of the economy. He wants something on the scale of the Departments of Energy or Agriculture

Under his proposal, the department would have independent agencies to set risk frameworks, carry out audits, assess governance and penalise bad actors. He points out that Amazon, Meta, Alphabet and Microsoft spent around $400 billion on data centres in 2025 alone, which means AI spending is now holding up a big chunk of US growth. If confidence collapses, the damage would spread far beyond tech. Oversight, he argues, would protect that investment rather than hurt it

He links this to the security incidents that have shaken confidence recently, including the rogue AI agent activity at Hugging Face and elsewhere that we have discussed. His view is that self regulation by companies and oversight by a single appointed official are not up to the job. He also makes an interesting claim, that clear boundaries are what AI chief executives have long wanted, because they make planning easier and reduce the risk of sudden crackdowns after a disaster. Investors seem to be paying closer attention to safety incidents than they once did

This fits with the Reuters piece about AI racing to transform the world before the money runs out, and the Bank of England's warnings. The common thread is that AI has become too important to the economy to be left without proper guardrails. Whether a whole new government department is the answer is another question, since big bureaucracies move slowly and AI moves fast

Let's keep this one to AI governance and the economics rather than party politics. Is a dedicated department a sensible idea, or would it just slow things down? Could better oversight make a crash less likely? And should other countries, including the UK, consider something similar?

Could a department of AI prevent an ai market crash?www.thenews.com.pk

[Storm]

Interesting to see this argument from someone in Kazakhstan. AI governance is a global concern, not just an American one. Smaller countries feel the effects without having much say