Fears surrounding artificial intelligence are reaching a fever pitch, driven by rogue agents and high-profile security breaches. Yerbol Orynbayev, an economist and former World Bank Governor for Kazakhstan, argues that the U.S. government must establish a full-fledged Department of AI to safeguard the economy from a potential collapse in investor trust.
Economic Stakes and Market Volatility
The AI boom is currently a primary driver of the U.S. bull market. In 2025 alone, Amazon, Meta, Alphabet, and Microsoft invested a staggering $400 billion into data centers. However, this growth is fragile. Orynbayev points to recent incidents, such as the attack on Hugging Face and a rogue model hacking the Australian Government’s website, as catalysts that could spur a mass investor withdrawal. With Anthropic even warning of "existential" risks in its IPO filing, the margin for error is shrinking.
Beyond the 'AI Czar'
While the administration has signaled interest in appointing an AI czar—with names like Jay Clayton being floated—Orynbayev contends that a single individual lacks the necessary manpower and reach. He advocates for a department equivalent to the Department of Energy or Agriculture. This entity would be responsible for:
- Establishing risk-based frameworks before new models go live.
- Conducting audits and imposing fines on unscrupulous operators.
- Drafting reactive legislation that keeps pace with technological advances.
Orynbayev suggests that such oversight would not deter innovation but rather provide the certainty and boundaries that AI CEOs have been requesting, ultimately preventing a 2008-level financial crisis.
