cs.AIJul 23, 2026

Regulating autonomous and agentic AI

Authors: Chris ReedAlex AustriaAnmol BharukaPragnitha MandavaKhushiya MujawarLuka Shakhkulashvili

Organizations: Professor of Electronic Commerce Law at the Centre for Commercial Law Studies, Queen Mary University of London · postgraduate student researchers for the Cloud Legal Project

Abstract

Regulating activities where regulatees use autonomous and agentic AI is challenging. Regulatory assumptions about regulatee knowledge and control no longer hold true; much of that lies elsewhere in the AI supply chain which thus needs to be brought within the scope of regulation. Governance systems for autonomous AI cannot replicate existing governance models, but need a fresh approach. Retrospective supervisory oversight becomes ineffective as a risk management tool, and AI autonomy generates new systemic risks which require new solutions. This paper investigate four regulatory systems: UK regulation of content platforms, data protection, UK financial services, and the EU AI Act'92s cross-sectoral regime. It analyses the challenges posed by autonomous and agentic AI and proposes potential solutions which regulators might adopt. These will transform regulation from a reactive process to an active one, and assist it in adapting to the challenges of AI autonomy.

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