Governing frontier general-purpose AI in the public sector: adaptive risk management and policy capacity under uncertainty through 2030

arXiv cs.AI / 4/10/2026

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Key Points

  • The article frames frontier general-purpose AI governance in the public sector as an institutional design challenge under uncertainty, where capabilities advance unevenly and knowledge of harms and effective interventions remains incomplete.
  • It critiques static “compliance-only” approaches and argues for adaptive risk management using scenario-aware regulation that remains robust across multiple plausible technology trajectories through 2030.
  • The proposed framework combines capability monitoring, differentiated AI risk tiering, conditional controls, institutional learning, and standards-based interoperability to handle prediction limits and evolving evidence.
  • It emphasizes that successful government adoption depends on sociotechnical factors—including organizational redesign, data collaboration capacity, and accountability structures aligned with public values.
  • The paper calls for stronger policy capacity and clearer responsibility allocation so governance mechanisms can persist and improve as the evidence base and AI capabilities change.

Abstract

The governance of frontier general-purpose artificial intelligence has become a public-sector problem of institutional design, not merely a technical issue of model performance. Recent evidence indicates that AI capabilities are advancing rapidly, though unevenly, while knowledge about harms, safeguards, and effective interventions remains partial and lagged. This combination creates a difficult policy condition: governments must decide under uncertainty, across multiple plausible trajectories of progress through 2030, and in environments where adoption outcomes depend on organizational routines, data arrangements, accountability structures, and public values. This article argues that public governance for frontier AI should be based on adaptive risk management, scenario-aware regulation, and sociotechnical transformation rather than static compliance models. Drawing on the International AI Safety Report 2026, OECD foresight and policy documents, and recent scholarship in digital government, the article first reconstructs the conceptual foundations of the 'evidence dilemma', differentiated AI risk categories, and the limits of prediction. It then examines how AI adoption in government depends on organizational redesign, public-sector institutional dynamics, and data collaboration capacity. On that basis, it proposes an adaptive governance framework for public institutions that integrates capability monitoring, risk tiering, conditional controls, institutional learning, and standards-based interoperability. The article concludes that effective AI governance requires stronger policy capacity, clearer allocation of responsibility, and governance mechanisms that remain robust across divergent technological futures.