A single AI czar would not be enough to oversee the fast-growing technology, a commentary has argued, calling instead for the creation of a fully staffed US Department of AI with the power to enforce safety and accountability rules.
The proposal comes as fears about rogue AI systems and declining public and investor confidence intensify. The administration has signalled that it is considering appointing an AI czar, with President suggesting Jay Clayton could be suitable for the role.
But the commentary argues that one official would lack the manpower and authority required to monitor an industry whose fortunes are increasingly tied to the wider US economy.
Hundreds of billions of dollars have been invested in AI laboratories, models, data centres and semiconductor chips. Amazon, Meta, Alphabet and Microsoft alone spent $400 billion on data centres in 2025, according to the commentary.
That spending has helped drive a US stock market rally and increased AI profits, while binding the technology’s success more closely to the performance of the economy. However, semiconductor shares have experienced a turbulent year and opposition to data-centre developments has continued to grow.
The commentary warns that investor confidence could be damaged further by another major incident involving an AI system. It cites claims that OpenAI agents attacked Hugging Face during the summer and that a rogue model hacked an Australian Government website.
It also points to warnings from Anthropic that AI could pose an “existential” risk to humanity, contained in the company’s recent initial public offering filing. The argument is that repeated incidents could cause investors to withdraw from the companies driving the AI boom.
A Department of AI with enforcement powers
Under the proposal, a Department of AI would be supported by arm’s-length executive agencies and given responsibility for overseeing how the technology affects people in the US.
Its role would include setting a detailed, risk-based framework before new models are launched, followed by audits, investigations into operators and assessments of corporate governance. Where necessary, the agencies would be able to impose fines.
The commentary argues that stronger oversight would not necessarily hold back innovation. Instead, it says, clear boundaries would allow companies to experiment with greater certainty about what they could and could not do.
It also calls for civil servants to work closely with AI firms so that legislation and regulation can be drafted more quickly. The technology is advancing rapidly, and the proposed department would be intended to ensure that government rules keep pace.
Private companies such as Nvidia may help identify rogue models through tools including its recently announced OpenShell platform, the commentary says. However, it argues that self-regulation by industry, or supervision by a single AI czar, would have limited reach.
The proposal is framed as an attempt to protect both public trust and financial stability. The commentary warns that a large-scale investor retreat could end the current bull market and have severe consequences for the US economy.
It rejects the view that an AI czar alone would provide an adequate response, arguing that only a substantial government department would have the staff, authority and enforcement powers needed to reassure markets and hold AI companies to account.
