Yonathan Arbel — April 20, 2026

In 1959, a midsize Swedish car company did something its competitors thought was myopic, if not reckless. It effectively open-sourced the three-point seat belt, the greatest safety innovation in automotive history. The prevailing industry wisdom at the time was blunt: “Safety doesn’t sell.” Just three years prior, Ford had offered seat belts for a $9 surcharge, as part of its 1956 Lifeguard campaign; despite Robert McNamara's championing of the program, the safety push failed to give Ford a competitive edge. Henry Ford II reportedly grumbled, as he was dialing back its campaign, “McNamara is selling safety, but Chevrolet is selling cars.” But Volvo was neither myopic nor reckless; in fact, it saw further than any of its competitors. While they competed fiercely for dominance in a race for horsepower, engine efficiency, and design, Volvo could see that consumers cared about safety and reliability, too. The bet paid off: Volvo became one of the most recognized automotive brands in the world. According to Volvo, seat belts have since saved over 1 million lives.

American AI needs its Volvo moment.

The aim of catalytic regulation is to enable this moment. It is a family of [...]

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Outline:

(02:24) Why Catalytic Regulation?

(09:13) From Principles to Practice: The Catalytic Regulation Bundle

(09:34) Corporate Incentives

(12:26) Demand-Side Incentives

(15:10) Market Guarantees

(17:06) The Power of Prestige

(20:39) A Seat Belt for AI

(21:33) Discussion about this post

(21:37) Ready for more?

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Narrated by TYPE III AUDIO.