Latest / The Road to Accountable AI / Emre Kazim (Holistic AI): Why AI Governance is Like Cybersecurity
Transcript
- 0:09Kevin: Hi, I'm Kevin Werbach, Professor of Legal Studies and
- 0:11Business Ethics at the Wharton School of the University of Pennsylvania.
- 0:15For decades, I've studied emerging technologies, from
- 0:17broadband to blockchain.
- 0:20Today, AI is promising to transform our world, but AI needs accountability,
- 0:26mechanisms to ensure it's developed and deployed in responsible,
- 0:29safe, and trustworthy ways.
- 0:32On this podcast, I speak with the experts leading the charge for accountable AI.
- 0:40Holistic AI was one of the earliest companies built specifically to
- 0:44govern, audit, and red team AI systems.
- 0:47In this episode, co-founder and CEO Emre Kazim talks about how his original
- 0:50thesis that AI governance would look like data governance anchored in
- 0:53compliance regimes has given way to something he now thinks looks more like
- 0:57cybersecurity, driven by incidents, technical assessments, and an arms race
- 1:02between AI capability and AI oversight.
- 1:05We also get into why human in the loop is no longer viable as the primary means
- 1:09of addressing AI risks, the vanguard model of enterprise AI adoption, why
- 1:14best practices will become the de facto standards for responsible AI, and why
- 1:18he believes that meaningful research capacity will be the price of entry for
- 1:22anyone working in the AI governance space.
- 1:26All right, Emre, welcome.
- 1:27Thank you for joining me.
- 1:29Fantastic.
- 1:29Thank you for having me, Kevin.
- 1:31Uh, so you co-founded Holistic AI in twenty twenty, if I'm right.
- 1:35That was before there was ChatGPT, before the EU AI Act.
- 1:39Uh, there was, you know, a lot of activity around, uh, responsible AI,
- 1:43but, but things have changed a lot.
- 1:45So what is it that, that originally got you started that, that made you
- 1:49see the need for this kind of service?
- 1:52Emre: Kevin, yeah, this-- that's actually a great question because it's been, uh,
- 1:56uh, the-- it's been so long now since we, uh, got going, um, that there's
- 2:01a... Sometimes when you look back in retrospect, you start to realize how many
- 2:05different kind of events precipitated certain kind of responses and other
- 2:09events which we kind of foresaw and act- and predicted and so on and so forth.
- 2:13So let me give you a bit of a primer in terms of how Holistic AI, um, spun out
- 2:18and what our kind of origin story is.
- 2:19So I'm co-founder of the company, and I co-founded the company
- 2:23along with Adriano Koshiyama.
- 2:25So Adriano and I met in the computer science department
- 2:28of University College London.
- 2:30So, uh, I'm sure your listeners are familiar with UCL.
- 2:34Um, it's the home of DeepMind, uh, Google's DeepMind.
- 2:38Um, we-- I tr- I claim Hinton as one of our Nobel Prize winners, but
- 2:42certainly Demis, uh, everyone was here at, was at UCL, and there was
- 2:46a lot of interest in foundational, uh, AI work and the generational
- 2:51synthetic data and so on and so forth.
- 2:53And in that context, there was an emerging and, and, and a very
- 2:57important conversation about trust Which was if we're going to use these
- 3:02systems or, and meaningfully harness their potential, then we have to
- 3:06have confidence in those systems.
- 3:08So, um, Adriano was doing his PhD at the time.
- 3:11I think Adriano started, um, in 2018 I met him, but he started before then.
- 3:15I started my postdoc in 2018.
- 3:17That's when I ended up at UCL.
- 3:19And the general conversation that we were having at that time was, how do we
- 3:23engender trust in algorithmic systems?
- 3:26And the use case that we were focused on was the example of a trading algorithm.
- 3:32Um, it was, the company was called Knight Capital.
- 3:35Kevin, I'm not sure if you're familiar with this use case.
- 3:38So it was a trading algorithm that glitched, and I think it wiped out
- 3:42$440 million from the business.
- 3:44Hmm.
- 3:45So it was this- Oh, yeah ... huge, yeah- Now, now I recall.
- 3:47Yes, yeah, yeah.
- 3:48It was this huge kind of use case in financial services, and there was
- 3:51this awareness that, okay, look at how mission-critical these AI systems are.
- 3:56You know, we have to have confidence that these systems actually work, and they're
- 3:59reliable and safe and so on and so forth.
- 4:02What was interesting is that at the same time, that was very much about
- 4:05operations, but at the same time, a social awareness was emerging around
- 4:09issues of bias and explainability.
- 4:12So we weren't sure, okay, how are we gonna go about doing this?
- 4:15And we thought our original thesis was that if we create a certification standard
- 4:20and a, an algorithm meets that standard, then it is, you know, ergo trustworthy.
- 4:27Now, the issue was, you know, what kind of certification standard?
- 4:30What, what was the standard that we were going to, uh, generate?
- 4:33And also, why were we in a position to forward that standard?
- 4:38So what we did, as academics, uh, we had the power to convene, and we
- 4:41brought the great and the good in the UK together, so then we had regulators,
- 4:45we had the civil service bodies, um, and then we had industry, and
- 4:50then we had ourselves as academics.
- 4:52And we thought, okay, what we'll do is create a certification standard that all
- 4:55of this cohort or group agree to, and then we'll kind of publish it as a public
- 5:00statement and then we can get going.
- 5:03And what happened pretty quickly is we realized that certification is an
- 5:06endpoint rather than a starting point, and the whole problem got flipped on
- 5:10its head, and two streams emerged.
- 5:14One was conversations about setting up a kind of national synthetic, uh, data
- 5:19center, and we were gonna basically set up something where you could test your
- 5:24algorithms against these data sets, and then you would know if they were biased
- 5:28or whatever it was be-, um, because we knew the data wasn't, so you'd be able to
- 5:33test the actual algorithms against that.
- 5:35And the second work stream was what we referred to at the time
- 5:40as algorithm auditing, which was saying, okay, let's just take a
- 5:43single system and let's say, how does one go about auditing an algorithm?
- 5:48And what does it even mean to audit an algorithm?
- 5:51So, uh, Adriano led the paper, I was second name author on this And he
- 5:55wrote, which I, what I consider to be the foundational text in the field,
- 5:59which is Towards Algorithm Auditing.
- 6:01And the paper, Towards Algorithm Auditing, became a really powerful framework
- 6:05to say, "Okay, this is how we would theoretically go about, um, assessing
- 6:10an algorithm." And the core thesis was there were technical variables such as
- 6:15explainability, privacy, uh, bias, and robustness, and robustness was a kind of,
- 6:20uh, umbrella term for re- reliability, reproducibility, security, and so on.
- 6:25And that those technical verticals, we were calling them verticals or variables,
- 6:29were controlled for by just like good traditional governance, documentation,
- 6:35compliance, taxonomies of responsibility, accountability, and so on and so forth.
- 6:40Um, and then that was the kind of core thesis.
- 6:42Mm-hmm.
- 6:43Now, the problem is you can't study medicine in the library, you know?
- 6:46Of course.
- 6:46You study medicine in the hospital.
- 6:48And, uh, Ajorn and I were like, "Okay, if we're actually gonna have impact, we've
- 6:52gotta do this in the real world." So we spun the company out, and we got going.
- 6:57And what we started to do was say, "Okay, how does one go about, in quotes,
- 7:00auditing an algorithm?" Um, and you know, we used this language of auditing
- 7:05because we wanted to evoke a kind of seriousness within the community because
- 7:11AI ethics and responsible AI, um, quickly became quite fluffy as terms.
- 7:17Um, so we were trying to make an analogy to say, "Hey, this is as
- 7:20serious as, as financial auditing," even though the analogy is not that great.
- 7:25Mm-hmm.
- 7:26So the kind of concept and the term changed and morphed, and we can
- 7:30talk about that perhaps, into things like, you know, is this AI GRC?
- 7:36You know, is this AI compliance?
- 7:38Is this AI governance?
- 7:39And so on and so forth.
- 7:41But actually, the core of it was- Mm-hmm ... you know, this is a, the
- 7:44foundational problem of this space, which is we can have all this technology, but
- 7:48if we can't use it, what's the point?
- 7:50And how can we create the kind of confidence and trust in that?
- 7:53And that moved from an academic exercise- Mm-hmm
- 7:56to, you know, maximizing our impact through, through a business.
- 8:01Kevin: Fast-forward to today then, what has remained of that
- 8:04initial vision, and what's changed?
- 8:06Emre: So I think at the... So one thing that's changed is I think, um, I think at
- 8:11the start, I believed that what we had... So, and I still believe this thesis, which
- 8:17is that 2010s was defined by data, and the 20, uh, 20s have been defined by AI.
- 8:24You know, a little primer here, I think the 2030s are probably
- 8:27gonna be defined by robotics.
- 8:29Mm-hmm.
- 8:29And, um, which is this kind of greater and greater embodiment or-
- 8:33Mm-hmm ... you know, autonomy of systems.
- 8:35And we thought, I thought that the way that data, w- a primary way in which data
- 8:41was governed was through legislation, and for example, we had the GDPR, and
- 8:46the GDPR, it m- created a huge market.
- 8:50I think that, um, that was ultimately wrong.
- 8:54I think it has not turned out to be the case.
- 8:56I think the EU AI Act is not a direct, you know, comparison to GDPR.
- 9:02I think AI does something else, and I think that the AI governance space and
- 9:07market, if you will, is gonna be defined more by more in analogy to cybersecurity
- 9:14than to governance in the way...
- 9:15Uh, sorry, to, than to compliance in the way that I thought it was going to be.
- 9:19Now- That, that's really interesting.
- 9:20Could you say more what that analogy means?
- 9:22So let's say, so I always thought, okay, what is AI... Uh,
- 9:26let's call it now AI governance.
- 9:27Let's, that's the category.
- 9:29And when you're doing category creation, uh, you know, no- it doesn't exist.
- 9:34You have to think, "Okay, what are the closest analogies here?" And I thought
- 9:38about, you know, a bunch of ways.
- 9:40One way I thought about was, okay, we've had cloud transformation,
- 9:45and then we got cloud governance.
- 9:47You know, does this look like that, you know?
- 9:50We had data transformation, and then we got data governance.
- 9:54And when you look at data governance, yes, there's things like providence, there's
- 9:57things like, uh, privacy, there's, uh, not pri- uh, compliance and privacy is not the
- 10:02sum total of data governance, of course.
- 10:03There's just a whole regime there.
- 10:06And then there's cybersecurity, right, which is a different kind
- 10:09of problem, uh, and a different form of governance, if you will.
- 10:13And my thesis was of this cohort, this would look more like data governance.
- 10:19And a big part of data governance, notwithstanding not the, not, not in its
- 10:23totality is compliance, was the GDPR.
- 10:27And actually, I thought AI is a companion or sister to data, that it
- 10:33has such an intricate relationship with the two that it's more likely to
- 10:37be the, the AI governance, whatever this cashes out as, is more likely
- 10:41to be closest to data governance.
- 10:44In fact, we had to make a- And presumably that was
- 10:45Kevin: the, that was the thesis of the European Commission as well- Absolutely
- 10:49... in putting together the AI Act.
- 10:50Absolutely.
- 10:50Emre: Absolutely.
- 10:51So, so a couple, you know, we wrote a lot of papers on this.
- 10:54Like w- e- right at the start in 2020, I believe the EU published a, their two
- 10:59principles upon which they were going to, uh, govern or, uh, um, uh, legislate
- 11:05for AI, and it was a, a ecosystem of, uh, competitiveness and an ecosystem of trust.
- 11:11And I thought, okay, yeah, these are the legal frameworks and so on.
- 11:14Now, the cybersecurity side, it didn't f- it didn't, you know, it didn't seem
- 11:19to have the kind of implications of privacy... Or sorry, of like things
- 11:23like bias, explainability- Mm-hmm.
- 11:25Right ... a lot of the concerns, the social concerns that people were.
- 11:27Mm-hmm.
- 11:28It was more like, okay, the company needs to be protected from certain
- 11:31kinds of incidents, if you will.
- 11:33But as we've moved and, and, you know, Kevin, I'd be keen
- 11:36to hear your views on this.
- 11:37As we've moved, it feels like it's moving more and more into incident management,
- 11:43performance management, you know, um, rather than, "Oh my God, we've got this
- 11:47compliance thing that we need to tick off And, you know, we n- we need a bunch of
- 11:52people with legal and policy backgrounds.
- 11:55Uh, so it feels to me like that's where I probab- where
- 11:58it is becoming more technical.
- 12:00Kevin: Interesting.
- 12:01Uh,
- 12:01Emre: incidentally for us, Kevin, it's, it's actually a good thing because we
- 12:04come- Yeah ... from foundational research.
- 12:06Yeah.
- 12:06Um, and it turns out to be non-trivial to red team an algorithm, you know?
- 12:12Or to, to really think about what are the latest benchmarks, or how
- 12:15can we innovate in this space.
- 12:17But, um, but yeah, I think it's moving more into, in, in the, into the deeper
- 12:20tech space than I think people had anticipated, or even I had anticipated.
- 12:25Kevin: Yeah.
- 12:26It, uh, fascinating.
- 12:27So that's what I was going to ask you, is what would be different for organizations
- 12:32taking this cybersecurity mindset or for a, a company like yours that's providing
- 12:36these services compared to y- where you started and many people started
- 12:40was this is like auditing, we've got a whole literature and an experience and
- 12:44infrastructure around financial auditing.
- 12:45So what does it look like in
- 12:46Emre: practice now?
- 12:47I think a couple things.
- 12:48One thing is, um, it's not an extension of data governance.
- 12:53Kevin: Mm-hmm.
- 12:53Emre: Ergo, it's not just adding a few questions, um, to, you
- 12:58know, your data governance regime.
- 13:00Mm-hmm.
- 13:00So it has a huge implication in terms of who owns this within the business.
- 13:04Mm-hmm.
- 13:04I think secondly, the skill set of the kind of people who are involved in that
- 13:08kind of, uh, concern is very different.
- 13:10So it's not so much legal and policy, I think it's now gonna become more and
- 13:14more technical, or people with technical kind of literacy and so on and so forth.
- 13:18I think the third thing is that it dep- it, at the core of
- 13:22this, of, of the, let's say, the problem of governing AI is it's...
- 13:28Data governance is quite conservative, right?
- 13:30It's about conserving, protecting, you know, ensuring, um, a certain kind of,
- 13:36um, regime of, of protection, if you will.
- 13:40Whereas AI fundamentally is about the exploitation and opportunity
- 13:45that it presents, right?
- 13:47So companies are racing to, uh, adopt AI, and almost like the winners of
- 13:52that race are gonna win this mar- are gonna win the market generally.
- 13:56So you have this immense pressure to say, "We need to use these systems." So
- 14:02the governance aspect is actually about saying, "How can we ensure as quickly
- 14:06as possible we can get the rockets off the ground?" You know, it's not just
- 14:10about protecting from the outside, "Okay, let's make sure no one can
- 14:13access this," and so on and so forth.
- 14:15So I think at the, uh, it, it's much more technical.
- 14:18So, like, I thought the market would have landed more on documentation
- 14:22and reporting, so we expect... And I think a lot of vendors just
- 14:26emerged and did that, basically.
- 14:28You know, "We provide documentation, we provide..." Yeah, sure.
- 14:31You know, so does everybody else, you know?
- 14:34But actually at the core it's saying, "Can you interrogate the systems
- 14:37themselves?" Mm. So I've been looking at, um, two concrete examples.
- 14:41One is, uh, our thesis on human oversight- So, you know, Kevin, you
- 14:46remember, I'm sure, you know, it used to be the kind of panacea for everything.
- 14:51You know, we just have make sure you have human oversight
- 14:53or there's more human oversight.
- 14:54Kevin: Yeah.
- 14:54Yeah, yeah.
- 14:55And- And everyone always says, "Human in the loop, that's the
- 14:56answer." That's it, you know?
- 14:57I still hear that all the time.
- 14:58Emre: And then it's like, you know, we've got this elephant in the room,
- 15:01which is in what meaningful way can a human, um, you know, let's say with
- 15:07these agentic systems, meaningfully oversee such a system, you know?
- 15:12And then you've got this kind of deeper problem of the systems are so
- 15:15sophisticated and dynamic that you... What about real-time monitoring?
- 15:20Like, what does it mean to actually have oversight?
- 15:23So that's an aspect that has been significantly eroded, I believe.
- 15:28You know?
- 15:29The second part is the actual what does it mean to assess, and I, I strongly
- 15:33believe that it requires a meaningful technical assessment of the system.
- 15:40So not just ask-- So if you remember the, for example, the data protection
- 15:43impact assessments would just be a form that someone filled in, you know?
- 15:48It's just simply, um, it's just inadequate for these systems.
- 15:53Kevin: What exactly are those technical capabilities?
- 15:55You, you mentioned red teaming before, but, but give us a little bit more
- 15:59detail about what that means in practice.
- 16:00So, so
- 16:01Emre: we'll take a few examples.
- 16:02Um, let's say for, let's say, let's say we were inter- Let's say you looked
- 16:06at... There was a piece of work that we did, uh, I'm happy to say, was on
- 16:10explainability of agentic systems.
- 16:12Mm-hmm.
- 16:13Really cool piece of work actually, um, Kevin.
- 16:15It-- We won a prize.
- 16:17We were awarded this prize by one of the co-founders of OpenAI.
- 16:20Um, it was a hackathon, actually, 600 teams, uh, competed, and
- 16:25it was just about this really cool, we called it Agent Graph.
- 16:29Uh, anyone can find it on our website, and it's part of our product.
- 16:33And it was basically an explainability function or tool for agentic systems.
- 16:39And, you know, that's the kind of stuff that really comes out of the academy.
- 16:43You know, it comes from foundational research.
- 16:45It's bleeding edge.
- 16:47Uh, it's the kind of stuff which is, it's, it's not meaningful to just ask a
- 16:50few heuristic questions- Mm-hmm ... um, and say, you know, "Who, who made this
- 16:55decision?" Or, you know, "What was this output?" It's about actually can you
- 16:59interrogate this system technically?
- 17:00So that's one example.
- 17:02And then there's like a whole suite of... So you've got a social definition of bias,
- 17:07let's say, uh, but then you've got a whole suite of technical tests to assess bias.
- 17:13Of course, nothing can, can be done in, in a vacuum.
- 17:16Um, each one is contextualizing the other, but you do need
- 17:19to assess these technically.
- 17:20So we have a, a large open source, um, bias or debiasing library.
- 17:26So these are the kinds of things that I'm, I'm referring to.
- 17:28We still now industriously publish in, um, leading, uh, computer science
- 17:33or AI conferences and journals, uh, because we think fundamentally that's
- 17:37probably where the, the direction of travel is, and we believe in it as well.
- 17:42Mm-hmm.
- 17:43Kevin: How much of it, the discontinuity is there with those technical
- 17:46responses with generative AI?
- 17:48Because it, for example, there's, there's a lot of bias testing algorithms
- 17:51which have been around now for a decade, but when you've got- Yeah ... a
- 17:54non-deterministic system- Totally ... then it's become a different environment.
- 17:58Emre: Yeah, totally.
- 17:58So that's an interesting question, and if I may, Kevin, I'd love to
- 18:02indulge a little bit about this kind of drama with the standards-
- 18:07Mm-hmm ... and regulatory bodies in our ecosystem- Mm-hmm ... writ large.
- 18:12So I think we were desperate as a community to say there's the,
- 18:16you know, somebody come out with the framework that we can just...
- 18:20That will be our target to assure against, right?
- 18:23And I think what happened was, rightly so, um, things were moving so quickly
- 18:28that these bodies themselves were having to react in a way which was, you know,
- 18:33f- uh, tr- uh, tracking the bleeding edge of these- Mm-hmm ... uh, systems and
- 18:38then saying, "Okay, how do we assure it?"
- 18:40And I think, and I give absolute credence to this, I think that it,
- 18:44it's been almost an impossible task.
- 18:47You know, we've got o- There was a period in particular between '23 and '24 where
- 18:52it felt like almost every month or every other week, some huge seismic event would
- 18:58take place in our ecosystem, new capacity.
- 19:01I mean, the generative models weren't around in anything like the way that we're
- 19:05talking about them when the EU did its first draft of the, of its legislation,
- 19:09and then all of a sudden they had to kind of respond to general purpose systems.
- 19:13So this is where I think the analogy with cybersecurity comes in.
- 19:17I think the way that cybersecurity works is that you have, like, incidents
- 19:20or events, and then this has this huge implication on the industry,
- 19:25and then there is a solution, and then that cascades quickly across-
- 19:29Yeah ... um, uh, enterprises or, or, or companies writ large.
- 19:33And I think basically that kind of best practice becoming normalized is
- 19:39probably the way in which it's going to hap- it's, it's going to work.
- 19:43So we're gonna see practical responses to, to things that just emerge.
- 19:47It's gonna come- Mm-hmm ... from the academy, it's gonna come from
- 19:49industry just responding, and then they're gonna become the standards.
- 19:53I think it's gonna actually flip on its head.
- 19:55I think best practice will become the de facto standard because I'm not sure we
- 20:00can really do this in abstract, you know?
- 20:03Kevin: Can I push back on you a little on that- Please,
- 20:05please ... on the cyber analogy?
- 20:06Absolutely.
- 20:07Um, certainly, you know, there, there's a lot of great technical
- 20:10capability, uh, in cybersecurity.
- 20:13Um, but you know, if you look, especially you look across enterprises, so- Yeah
- 20:17... so not just, you know, military, you know, super high security kinds of contexts,
- 20:22um, you know, there's incident reporting.
- 20:25There are very good firms when you have a data breach that
- 20:27will go and clean things up.
- 20:29But a- at least what I see is, is we don't really see a race to the top.
- 20:33There's still many companies that are saying, "Okay, this is
- 20:36a cost of doing business." Yeah.
- 20:38Uh, and, and they're not really adopting the best practices.
- 20:41Doesn't seem like the incentive structure is really there broadly enough.
- 20:44So i- i- if you... You're nodding your head, so if you agree with that, how does-
- 20:48Yeah ... AI governance avoid that fate?
- 20:49Look,
- 20:50Emre: so I agree.
- 20:50I, I, I'm not... Uh, because I think the ana- that the analogy with
- 20:53cybersecurity breaks down as well.
- 20:55Mm. Um, it's just that I was just trying to make it in
- 20:58comparison to data governance.
- 20:59Kevin: Well, I think it's a good analogy- Uh, yeah ... it's just cybersecurity
- 21:01is not necessarily a positive model.
- 21:03Emre: Uh, yeah, sure.
- 21:04Then, you know, so, so, so absolutely, I agree.
- 21:07So I can think, uh, in my, in my mind, I can think of different categories
- 21:11where you would have sufficient... You'd have market motivations
- 21:14and other categories where you would not have market motivations.
- 21:18Uh, and I think probably as we move forward, institutes like NIST and so
- 21:22on will probably have to work most aggressively on promo- o- on focusing
- 21:27on the areas where there isn't a market motivation to, for a company
- 21:30to, to behave in a particular or, or to govern in a particular way.
- 21:34But I must talk... I'm talking about really basic stuff, like
- 21:36for example, the hallucinations.
- 21:38I can just... A m- an immense market motivation to get that right.
- 21:42Yeah.
- 21:43You know?
- 21:43Uh, bias is not... People, I think, fixate on biases in demographic terms,
- 21:48but we're talking about, like, a algorithmic bias, like in terms of
- 21:51its... So we've got huge, um, market motivation to get that right, you know?
- 21:57So I think there is enough.
- 21:58It... That's not the same in, in a lot of cybersecurity, of course it isn't.
- 22:02Um, you know, whereas I think there is a, there are more powerful forces in-
- 22:07Mm ... in our industry, uh, for sure.
- 22:12Kevin: What are you seeing right now with the companies that, that you talk
- 22:15to or, or that work with Holistic?
- 22:17What's, what's motivating them?
- 22:18What are the biggest problems that they're bringing to you
- 22:20Emre: today?
- 22:21I think overwhelmingly... So my, my experience, and I'd love to know if it,
- 22:26if it's, uh, analogous to yours, is... Or, or in, or coherent with your experience.
- 22:30My, my experience was that in '23 and '24, there was this explosion of pilots.
- 22:36Mm. Like a huge amount of kind of speculative work.
- 22:39And I felt like at the start of '25, there was a kind of reckoning, um, which
- 22:45was, you know, what's going on here?
- 22:47You know, where is the return on value on these systems?
- 22:50You know, what are we actually seeing here?
- 22:52And we're starting to see more and more of this sense of reflecting a bit
- 22:57more and saying, "Okay, can we actually derive value from these systems?"
- 23:02So there has been... I think we've moved past that pure experimentation phase.
- 23:07Uh, I don't think we saw the kind of productivity gains that the industry
- 23:12was hoping that it would have gained, but I don't think it was a wasted labor.
- 23:16I don't think it was wasted labor.
- 23:17I think that capital that was invested, uh, both in terms of human labor and
- 23:22actual capital, I think it's gone into knowledge rather than production.
- 23:26Uh, and that, and that means, you know, it's almost like a J curve.
- 23:29So ultimately, I think now we're gonna start to see the, the upside of it.
- 23:33So the kind of... What we're seeing generally is a far higher
- 23:36level of maturity in terms of awareness of this problem.
- 23:40Um, they've had some periods of experimentation, um, and now
- 23:44they're really keen to actually motivate and push this forward.
- 23:48Um, typ- so the distribution is usually... Actually, a lot of
- 23:51companies are still using traditional, uh, machine learning systems.
- 23:55Then they've got a c- a cohort of generative systems that have,
- 23:59have been quite reasonable and worked, and now they're really
- 24:01experimenting with agentic systems.
- 24:04Um, not, not generally not in production, but, uh, you know, really
- 24:08keen to move in that direction.
- 24:09So it's-- That, that's the kind of distribution.
- 24:12Kevin: Yeah.
- 24:13How does that impact on their interest and commitment to AI governance?
- 24:17Oh,
- 24:17Emre: I think it, it's the far... There's, it... So what I'm finding is
- 24:23there are different constituents that are concerned- Mm-hmm ... with AI governance.
- 24:27Mm-hmm.
- 24:28So one of the constituents is whoever owns AI transformation in the business.
- 24:33All right, so fundamentally, they are responsible for undergoing... It's for
- 24:37motivating this transformation, and governance is just central to that.
- 24:40For them to have a single pane, um, view on the use of AI across the business,
- 24:45to be able to manage this, to be able to have, you know, a view on who's
- 24:48using this and who isn't using this.
- 24:49So fundam-- Let's say that's a kind of AI governance as, uh, something that
- 24:55falls out of a technical track, you know, which is just about transfor- tran-
- 24:59AI transformation across the business.
- 25:01And of course, the sec- second cohort is those very much motivated by compliance
- 25:06or policy, you know, and saying, "Look, we need to be, we need to be able to...
- 25:11We really need to be on our brief on here.
- 25:13You know, how are we gonna be accountable?
- 25:15How can we document what we're doing?
- 25:16How can we ensure that we have sufficient audit trails and so
- 25:19on and so forth?" Anticipating the AI Act and other frameworks.
- 25:23So they're the two kind of general, uh, camps.
- 25:27I don't think, um, the persona that owns this has solidified.
- 25:33Um, you know, Kevin, it's funny, I thought at the start of the decade in 2020, I
- 25:37thought by the middle of this decade, so last year, we would have had, we would
- 25:41have settled on a lot of the core issues like what does it mean to... What...
- 25:46Like for example, the documentation I thought would've been solved, you know?
- 25:49Um, and then I thought the second half of the decade would be
- 25:52codification of technical standards.
- 25:54Kevin: Mm-hmm.
- 25:55Emre: But actually, the, the market or the general space is still very indeterminate.
- 25:59Uh- Yeah ... it's, there is-- We're starting to see the kind of
- 26:02repeatability in personas and so on, but actually, it's still quite,
- 26:06um, it's still very, very dynamic.
- 26:10Mm-hmm.
- 26:11Kevin: Well, so what do you see from this vantage point of 2026?
- 26:15What, what do you think now we can expect in 2030 in this area?
- 26:19Emre: Yeah, I do.
- 26:19I think we're gonna base... I think we would have s- I think
- 26:22in quotes, we would've solved the problem of productivity Actually
- 26:25coming from these systems.
- 26:27So like, um, I don't think it's gonna be...
- 26:29I think there was, there was a thesis that Copilot was the approach,
- 26:34which was every single person is supercharged with their own AI.
- 26:37I think it's more gonna be there's gonna be some very, very powerful
- 26:40use cases- Mm-hmm ... and we're gonna see immense value from them.
- 26:44Mm-hmm.
- 26:44And that companies would have solved that, like we would've been
- 26:47right in our, fully in our stride, um, in, in that particular path.
- 26:52So I think it's probably not so much the in quote- I'm talking
- 26:55about in the enterprises.
- 26:57Um, it's not so much I think about the kind of transformation of every
- 27:02single person having, uh, a system, not the democratic model, as I call it.
- 27:06I think it's more the vanguard model of, you know, companies are gonna
- 27:10invest heavily in these, you know, mission-critical, probably agentic
- 27:14systems that are gonna motivate huge change within the business.
- 27:17Mm-hmm.
- 27:18And the productivity will come from them.
- 27:20And the governance in that context is very different to the governance
- 27:25in the more generalized sense.
- 27:27So the, the more generalized sense, I think we'll continue to have the problem
- 27:31of shadow AI, who's using it, what are they doing, and so on, and that's it.
- 27:35And then on the kind of more vanguard models, let's call them, or, or, or
- 27:39use cases, it's gonna be very much red teaming and saying, "Okay. How,
- 27:42however deep we can go, let's go." You
- 27:44Kevin: know?
- 27:46Mm-hmm.
- 27:46And how much can red teaming be automated and scaled, which presumably is essential,
- 27:51especially with go-to a-agentic models?
- 27:54Emre: Yeah.
- 27:54So I think what we'll have is probably we're in a, it's like an arms race, uh,
- 28:00from... So it's funny, is it-- So I guess one of the themes of this conversation
- 28:04is it, what, is that I thought it was gonna be the law versus tech, right?
- 28:09And as it's progressed, it seems to be tech versus tech.
- 28:12So I think what we're seeing is basically it's gonna be the rate at
- 28:16which we're gonna see innovation in AI is gonna have to be mirrored and
- 28:19will be mirrored in the rate at which we're seeing innovation in governance.
- 28:23Mm-hmm.
- 28:23I think for the long term, you know, for the next ha-half a decade, decade,
- 28:29it's gonna, it, it's impo- it's gonna be impossible to play in this game without
- 28:33meaningful, uh, research capacity.
- 28:37So I just think it's gonna be... That's, that's the m- that's the direction
- 28:41in which we're gonna be seeing this.
- 28:42It's, uh, it's... We, we have to anticipate more, uh, and
- 28:47significant innovation in this space.
- 28:49You know, I mean, we would be... It, it's not static.
- 28:52You know, it's not that we just had the LLMs and then now we're,
- 28:56you know, responding to it.
- 28:57It's like, you know, every year something dramatic is taking place.
- 29:00So I think it's fundamentally gonna be whoever's on the core face of the
- 29:05research and the innovation in governance is gonna be the only ones that can
- 29:09meaningfully govern, uh, these systems.
- 29:13Kevin: You mentioned early on that, that human oversight, uh, is, is
- 29:17no longer going to be, be viable or just as a, as a simple concept.
- 29:20So then what- Yeah ... what replaces that, that serves the needs that people
- 29:23were talking about human oversight for?
- 29:25Emre: So, so, so I do believe there will be, um, human oversight, but
- 29:28I think it'll be at a different level of, of abstraction.
- 29:31You know?
- 29:31So at the moment it's, I guess, I'm trying to think about what the
- 29:34appropriate, um, mental model would be.
- 29:37It's a bit like saying, you know, we don't, we don't scan
- 29:41for planes using our eyes, right?
- 29:43Mm-hmm.
- 29:44Um, we have radars, we have so on, and then we have somebody
- 29:46viewing the radar, right?
- 29:48So e- I see it a bit like, I see it like that.
- 29:50I think it's at a high level of, of abstraction.
- 29:53We'll see the kind of human oversight.
- 29:55It won't be on the every single system or somehow... I think we're gonna
- 29:59basically move towards AI governing AI.
- 30:02I think effectively that's what we're going to see.
- 30:04We're gonna see an increase in automation and an increase in the use of, um,
- 30:11things like guardian agents, sentinels.
- 30:14Mm-hmm.
- 30:15Um, you know, really quiet areas, which I thought, you know, were
- 30:19a lot further away are actually closer than, than one imagines.
- 30:23So I think that's basically the paradigm we're moving towards, AI governing AI.
- 30:27Kevin: Hmm.
- 30:28Which presumably makes your point about the need for research capability,
- 30:32because obviously you've got to build AI governance systems that don't have
- 30:35the same problems as the AI itself.
- 30:37Emre: You've got the problem of infinite regress, right?
- 30:39Yeah.
- 30:39So like you need to, how does that system govern that system?
- 30:42How do we govern the system governing the system?
- 30:45How do you have confidence in that system and so on.
- 30:48And there's regimes in which you can do this, but, but absolutely, I have no doubt
- 30:52in my mind, and it's quite extraordinary because, you know, as an entrepreneur,
- 30:56when you leave the academy, uh, it's a d- it's a completely different, um, domain
- 31:02of expertise and incentive structure.
- 31:05But when you're-- But we, we seem to be in the most unique, uh- Mm-hmm ... setting,
- 31:10Kevin, where like the f- that research is driving, foundation research is
- 31:15still driving the, the market or the industry, which is an extraordinary thing.
- 31:19You know?
- 31:20Um, two company, uh, from our home institution, UCL, um, two companies just
- 31:25raised a significant amount of money.
- 31:27Uh, one raised one point one billion, the other raised five hundred million.
- 31:31Uh, I think, oh, you probably saw the news recently.
- 31:33And for la- effectively labs, you know?
- 31:37Mm-hmm.
- 31:38And it's, that was quite striking for me, but I, but it, but it kind of makes sense,
- 31:43you know, that, um, that still there's so much foundational work, uh, and the
- 31:48kind of foundational work that is taking place is coming from, from research.
- 31:52Hmm.
- 31:53Kevin: Although, you know, we're going to need to wrap up after this.
- 31:55The, the, the challenge is w- when you have these, uh, applied companies
- 32:01especially, that have valuations where they're raising in the hundreds
- 32:04of millions or billions- Yeah ... of dollars, uh, then people who otherwise
- 32:07would be in academia and doing research increasingly are doing their work-
- 32:11Behind closed doors in organizations that are not necessarily publishing
- 32:16Yeah How do we get out of that dynamic?
- 32:17Emre: Yeah, I think that's a, that's a great que- great question.
- 32:19I don't know.
- 32:20Yeah Because they are producing fantastic, there are companies producing
- 32:24fantastic work, and at the same time, exactly as you said, so like I
- 32:28noticed LeCun left, uh, Meta, right?
- 32:32And he's the classic example of somebody I would've expected to go back in, properly
- 32:36back into the academy, but instead he basically raised another billion dollars,
- 32:40I think it was a billion euros or whatever it was, to set up another lab.
- 32:44So, um, there is a whole conversation to be had about, you
- 32:48know, what is taking place there.
- 32:49Can you, can you do meaningful, purely speculative interest-driven
- 32:55research in the context of a commercial, um, uh, entity?
- 33:00Um, I mean, um, that's a, a greater question, if you will, but I
- 33:04do think, I mean, the US is the best model for this, you know?
- 33:08Uh, we've got so many examples in the US of where, um, fundamental
- 33:13and foundational innovation is taking place in industry, you know?
- 33:17So I'm not as, I'm not, I'm not, I'm not ... It's, this seems to be
- 33:21a unique dynamic, um, but I think that's an important question to ask.
- 33:26Mm-hmm.
- 33:27Absolutely.
- 33:27Kevin: Well, it's, as you say, a fascinating time in many ways.
- 33:30We could keep going for a long time, but we need to wrap up.
- 33:33Emre, thanks again.
- 33:34It's really great to talk to
- 33:35Emre: you.
- 33:35Thank you so much.
- 33:36Thanks, Kevin.
- 33:37Kevin: This has been The Road to Accountable AI.
- 33:40If you like what you're hearing, please give us a good review and
- 33:43check out my Substack for more insights on AI accountability.
- 33:47Thank you for listening.
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