Instead of only using AI to help people comply with complex regulations, its real power lies in helping policymakers simplify them. AI can analyze thousands of pages of rules to identify what is vestigial, conflicting, or redundant, enabling the simplification required for scalable government services.
In a Washington D.C. study, citizens expressed a desire for personal AI agents to help them navigate complex regulations and paperwork. This reveals a key user need: people want AI as a personal advocate against systemic complexity, not just as a tool for institutional optimization.
AI is more than a tool for modernizing government services. It's a disruptive force that changes society's needs, compelling government to ask if its existing programs are even the right ones. For instance, is unemployment insurance the correct response to permanent, AI-driven job displacement?
Instead of static text, AI enables 'outcome-oriented' legislation. Lawmakers could simulate a bill's effects before passing it and embed dynamic triggers that automatically enact policies based on real-time data, like unemployment rates or tariff changes.
AI delivers the most value when applied to mature, well-understood processes, not chaotic ones. Pharma's MLR (Medical, Legal, Regulatory) review is a prime candidate for AI disruption precisely because its established, structured nature provides the necessary guardrails and historical data for AI to be effective.
Contrary to their current stance, major AI labs will pivot to support national-level regulation. The motivation is strategic: a single, predictable federal framework is preferable to navigating an increasingly complex and contradictory patchwork of state-by-state AI laws, which stifles innovation and increases compliance costs.
The immense regulatory complexity in U.S. healthcare creates an estimated $500 billion "tax" of administrative bloat. The non-obvious opportunity is that by using AI to eliminate this waste, the savings could be redirected to fund expanded patient care, rather than just being captured as profit.
AI tools can act as 'bureaucratic archeologists,' allowing public servants to quickly trace the origins of entrenched, inefficient rules. This empowers them to differentiate between actual law and outdated interpretations, enabling reform from within by asking the right questions.
AI tools can be rapidly deployed in areas like regulatory submissions and medical affairs because they augment human work on documents using public data, avoiding the need for massive IT infrastructure projects like data lakes.
AI tools can instantly parse, reformat, and summarize dense documents like congressional bills, which would otherwise require significant manual cleanup. This capability transforms workflows for analysts and researchers, reallocating time from tedious data preparation to high-value strategic analysis.
By scanning entire regulatory codes, Vulcan Technology discovered that roughly 5% of state regulations are illegal because they reference statutes that have already been repealed. This finding creates a massive, immediate value proposition for governments: instant risk reduction and cleanup of their legal code.