Chavez, a veteran of both the technology and financial sectors, criticized the reactive nature of American policy. He drew a sharp parallel to the financial crisis, noting that regulators often wait for a catastrophe before implementing necessary safeguards. This piecemeal strategy, he contends, fails to provide a level playing field and leaves the market vulnerable to the same boom-bust cycles that have historically plagued emerging technologies.

The industry is already feeling the pressure of this ad-hoc governance. Anthropic recently disabled its most advanced models for foreign nationals following a government directive, while OpenAI delayed the launch of its GPT-5.6 model to accommodate vetting by authorities. For Chavez, these interventions are insufficient substitutes for a structured framework. He advocates for a system modeled on post-crisis financial stress testing, which would mandate standardized safety assessments rather than relying on individual interventions after development is complete. His warnings align with recent cautions from the Bank for International Settlements, which identified potential supply bottlenecks and over-investment as immediate threats to the stability of the AI boom.