The following is a summary of Eric S. Maskin's keynote address to attendees at the Eighth Annual Conference of Government and Economics held at Tsinghua University, Beijing, on May 23, 2026. Eric S. Maskin is a 2007 Nobel Laureate in Economic Sciences and Adams University Professor of Economics at Harvard University.
On May 27, 2026, the Eighth Annual Conference of Government and Economics, co-hosted by the Society for the Analysis of Government and Economics (SAGE) along with Tsinghua University's School of Social Sciences and the Academic Center for Chinese Economic Practice and Thinking (ACCEPT), was broadcasted online. 2007 Nobel Laureate in Economic Sciences and Adams University Professor of Economics at Harvard University, Eric S. Maskin, delivered a keynote address by way of a video presentation in which he evaluated ways to better govern the development of artificial intelligence.
Maskin launched into a discussion on the various societal impacts and governance frameworks associated with the ongoing AI revolution. Compared with the previous industrial, computer, and internet revolutions, AI is being adopted faster and is having a comparatively broader impact, with the technology expected extend its reach into almost every domain of society and across almost all areas of employment.
On the one hand, AI has the potential to replace a large amount of routine and repetitive tasks, including even a portion of knowledge work or mental labor; and on the other hand, the technology also generates enormous hazards ranging from the mass substitution of employment and misinformation from deepfakes, as well as the possibility of losing control over AI systems following an increase in their autonomy.
In terms of logic behind the governance of AI, Maskin emphasized that research into AI operating mechanisms and their social impact has the attribute of being a public good, and since the private sector may underinvest in these areas due to the need to maintain profitability, the government therefore must step in to provide the necessary research funding and institutional incentives.
He further advocated for applying mechanism design principles in the establishment of institutions focusing on AI governance, ensuring that such institutions can promote the development of AI while effectively preventing its misuse through the reasonable allocation of powers, responsibilities, professional capabilities, incentives and constraints. Compared to the high degree of independence and clearcut targets that underpin the governance model of the Federal Reserve System of the United States, Maskin stated his preference for establishing a dedicated AI department more in line with the mold of the US Department of the Treasury.