S2E2 | Mar 8, 2026 - Part 1: We're Regulating the Safest Systems

In the S2E2 dialogue on automation and systems complexity, Billy Riggs explores the intersection of institutional incentives, automation, and public policy through two seemingly unrelated stories: the transformation of college athletics and the public reaction to autonomous vehicle failures.

Riggs opens with reflections on the evolving economics of NCAA athletics following the rise of Name, Image, and Likeness (NIL) compensation structures. Using the University of Kentucky’s $22 million basketball program as a case study, he argues that amateur athletics are rapidly becoming financialized markets where athletes function as assets and donor collectives resemble investment vehicles. While supportive of athlete compensation, Riggs raises concerns about “mission drift” within universities as athletics increasingly compete with academic priorities in an AI-driven economy.  

The episode then pivots to autonomous vehicles and the Waymo stoppage in San Francisco in December 2025, where a fleet of AVs stopped operating after a communications failure. Riggs reframes the incident not as a system collapse, but as an example of a safety-critical system behaving exactly as designed. He explains how California’s regulatory framework requiring two-way communication redundancy contributed to the shutdown and argues that autonomous systems are often over-regulated despite demonstrating measurable safety improvements over human drivers.  

Throughout the episode, Riggs ties both stories together under a broader critique of modern governance: institutions increasingly optimize for optics, spectacle, and perceived risk rather than measurable outcomes. The episode positions these developments as “stress tests” revealing how systems actually function under pressure—and questions whether America’s institutions are properly aligned for the future economy. 

[Note: In our next episode Part 2 of this discussion will feature Bruce Appleyard and continue exploring “wicked problems” related to autonomous vehicles, systems governance, and urban transportation futures.]

Takeaways and Key Themes
  • NIL has transformed college athletics into a quasi-financial marketplace.
  • Universities may be drifting away from their educational mission.
  • AV systems stopping under uncertainty can represent safe behavior.
  • Regulatory frameworks themselves can sometimes create operational fragility.
  • Human driving risks are often normalized despite significant societal harm.
  • Emerging technologies face asymmetrical scrutiny compared to legacy systems.
  • Systems thinking is essential for understanding institutional behavior under stress.
Soundbites
  • “We’re not just paying student athletes—we’re pricing them.”   — Billy Riggs
  • “When I was running, athletics complimented education, but now it’s almost as if the education compliments the athletics.”  — Billy Riggs
  • “This is a time for higher ed to be very clear about what its priorities are.”  — Billy Riggs
  •  “Stopping is really a safety critical system. It’s a safety feature.”  — Billy Riggs
  • “Humans drive through uncertainty.”  — Billy Riggs
  • “We regulate the safest drivers and ignore the ones that end up killing people.”  — Billy Riggs
  • “We’re not optimizing for outcomes. We’re optimizing for optics.”  — Billy Riggs
  • “It’s about systems. It’s about uncertainty and it’s about wicked problems.”  — Billy Riggs
Additional Resources
Chapters
00:00 - Opening: Systems Under Pressure
04:40 - Kentucky Basketball and NIL
7:56 - Mission Drift in Higher Education
10:47 - The Waymo Stoppage Incident
14:06 - AV Safety and Human Behavior
15:26 - Optics vs Outcomes
16:26 - Closing Reflections


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