The Impact of Generative AI and Large-Scale Foundation Models on Regulation of Development

This chapter explores how generative AI and large-scale foundation models disrupt regulatory frameworks that were designed for narrow, task specific systems. Because these models are general purpose, opaque, and deployed across many sectors, they challenge existing legal definitions, risk classification schemes, and traditional notions of liability. The chapter analyses key issues around accountability, intellectual property, data protection, transparency, and fairness, and reviews emerging tools such as regulatory sandboxes and technical standards. It argues for proportional, context sensitive regulation that distributes responsibility across the AI lifecycle while safeguarding fundamental rights and still enabling responsible innovation.