The Collingridge Dilemma sounds like the title of a Sherlock Holmes mystery. It is, in fact, one of the best explanations for how difficult it can be to control risky technologies. In essence, it concerns the imbalance between imperfect information and entrenched power.
“When change is easy, the need for it cannot be foreseen; when the need for change is apparent, change has become expensive, difficult and time-consuming,” the academic David Collingridge wrote in his book The Social Control of Technology.
How can we act when dealing with known unknowns? That dilemma is facing regulators today as they try to assess the impact of artificial intelligence in the finance industry. As two recent reports from the Bank for International Settlements and the OECD make clear, we have now reached a critical juncture. While the benefits of AI are obvious, in terms of increased efficiency and improved service, the risks are often obscure.