# Innovation Chilling Effect **Entity class:** Policy mechanism **Domain:** Artificial intelligence / science / political economy **Maturity:** Developed ## Definition **Innovation Chilling Effect** An innovation chilling effect occurs when uncertain prohibitions, severe liability, or extreme penalties cause people and firms to abandon useful experimentation before a rule has even been tested. ## Mechanism and Consequence The relevant policy question is not whether harmful conduct should be constrained, but whether a legal design distinguishes dangerous acts from the broad work required to solve technical and social problems. ## Relationships - [[wiki/Risk Debate|Risk Debate]] - [[wiki/AI Control|AI Control]] - [[wiki/AI Entrepreneurship|AI Entrepreneurship]] - [[wiki/Technological Panic|Technological Panic]] ## Source Dossiers - [[research/AI Is Now So Good They Will Pay You to Quit|AI Is Now So Good They Will Pay You to Quit]] - [[research/Super Intelligence Week Index of Statements from the White House Luncheon|Super Intelligence Week Index of Statements from the White House Luncheon]] - [[research/Jensen Pushes Back on Doomers Moonshots Live|Jensen Pushes Back on Doomers Moonshots Live]] ## Simple Reminders, Quotations, and Thoughts > "There are so many real problems that need to be solved. I hate the idea that we are going to turn [superintelligence] into a do-or-don’t argument, which is utterly insane. Liability law in the United States makes it very easy to scare people into doing nothing. If people fear twenty years in prison before the rule has even been proposed, they stop acting, and that is the worst thing that could come out of this." > **— Dave Blundin**, *MOONSHOTS Live, September 25, 2026* [[reminders/Risk Debate/Fear of Prison Can Stop People From Solving Real Problems by Dave Blundin|Fear of Prison Can Stop People From Solving Real Problems by Dave Blundin]]