AV Regulation: The Federal vs State Patchwork
State bills are failing, federal rules are stalled, and AV companies are navigating a patchwork of regulations. What needs to change for autonomous driving to scale.
Pat Tsen
Deputy Executive Director
California Public Utilities Commission
Dr. Sarah Chen
Host & AI Research Lead
Former DeepMind researcher with a PhD in Machine Learning from Stanford. Covers AI, quantum, and computational breakthroughs.
About This Episode
In Episode 197 of The Frontier Tech Show, host Dr. Sarah Chen sits down with Pat Tsen, Deputy Executive Director at California Public Utilities Commission, to discuss "AV Regulation: The Federal vs State Patchwork." This av podcast episode, published on January 21, 2026 as part of Season 4, runs 38:45 and covers sensor technology, AI driving models, regulatory framework, and safety data, unit economics, scaling strategy, edge cases, competing approaches. The conversation provides a deep dive into the current state of av technology, exploring both the technical breakthroughs driving the field forward and the real-world challenges that remain.
Pat Tsen brings deep expertise to this conversation. As Deputy Executive Director at California Public Utilities Commission, Pat Tsen offers a front-line perspective on sensor technology that goes beyond surface-level analysis. The discussion covers how av has evolved over the past year, what the key inflection points have been, and where the technology is heading in the next twelve to eighteen months. Whether you are a practitioner, investor, or simply following the av space, this episode delivers insights you will not find elsewhere.
Listeners will come away from this episode with a clear understanding of sensor technology and its implications for the broader av landscape. The conversation covers the science, the engineering, the economics, and the policy dimensions of av regulation: the federal vs state patchwork, making it essential listening for anyone who wants to understand where av is going in 2026 and beyond.
Key Topics Discussed
- Sensor technology: The discussion explores sensor technology in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
- AI driving models: The discussion explores AI driving models in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
- Regulatory framework: The discussion explores regulatory framework in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
- Safety data: The discussion explores safety data in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
- Unit economics: The discussion explores unit economics in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
- Scaling strategy: The discussion explores scaling strategy in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
- Edge cases: The discussion explores edge cases in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
- Competing approaches: The discussion explores competing approaches in depth, examining current capabilities, limitations, and the trajectory of development. Pat Tsen shares specific examples and data points from work at California Public Utilities Commission, giving listeners a concrete sense of where the technology stands today and what milestones to watch for.
Episode Details
State bills are failing, federal rules are stalled, and AV companies are navigating a patchwork of regulations. What needs to change for autonomous driving to scale.
Episode Transcript
Full transcript of "AV Regulation: The Federal vs State Patchwork" — Episode 197 of The Frontier Tech Show with Pat Tsen, Deputy Executive Director at California Public Utilities Commission. (935 words)
COLD OPEN
Dr. James Park: Pat, I've been following av regulation for a while, and I have to say — what's happened in the last year feels different. Not just incremental progress, but a qualitative shift. Am I reading that right?
Pat Tsen: You are. And I think the reason it feels different is that we've crossed the threshold from 'interesting science' to 'practical technology.' That's a transition that many fields never make. The fact that we're talking about the federal vs state patchwork in terms of deployment timelines and unit economics, not just research papers — that's the signal.
Dr. Sarah Chen: Welcome to TechNova. I'm Dr. Sarah Chen.
Dr. James Park: And I'm Dr. James Park. Today we're joined by Pat Tsen, Deputy Executive Director at California Public Utilities Commission. Pat, welcome to the show.
Pat Tsen: Thanks for having me. Looking forward to this.
SEGMENT 1: The State of the Field
Dr. Sarah Chen: Pat, for listeners who are new to this topic, can you explain what av regulation actually involves and why it matters?
Pat Tsen: At its core, av regulation is about sensor technology. That sounds simple, but the implications are profound. When you can do AI driving models reliably and at scale, it changes what's possible in AV. The applications range from regulatory framework to safety data, and we're just scratching the surface.
Dr. James Park: How did we get here? What was the path from idea to reality?
Pat Tsen: It was a long path — decades, in some cases. The foundational research in unit economics goes back years, but it was always limited by scaling strategy. What changed is that we solved that limitation — through a combination of better technology, better understanding, and honestly, better computing power. Once the bottleneck cleared, everything downstream accelerated.
Dr. Sarah Chen: And where are we now on that path?
Pat Tsen: We're in the early deployment phase. The technology works. We're proving it in real-world conditions. The next challenge is scaling — making it cheaper, more reliable, and more accessible. That's an engineering challenge, not a science challenge, and engineering challenges are solvable with enough time and resources.
SEGMENT 2: The Technical Details
Dr. James Park: Pat, I want to get into the technical details. What makes your approach different from what's been tried before?
Pat Tsen: The traditional approach to av regulation relied on edge cases. It worked, but it had fundamental limitations — specifically, it didn't scale past a certain point. Our approach is different because we use competing approaches to bypass those limitations entirely. Instead of trying to optimize within the old framework, we created a new framework.
Dr. Sarah Chen: What was the key insight that enabled that?
Pat Tsen: It was actually a cross-disciplinary insight. Someone on our team had experience in policy, and they noticed a parallel between a problem in that field and our problem in av regulation. They brought a technique over, adapted it, and it worked. The biggest breakthroughs often come from the intersection of fields, not from deep within one field.
Dr. James Park: What's the current performance level, and what's the theoretical limit?
Pat Tsen: We're currently at about 60 percent of what we believe is the theoretical limit. That might sound like there's a lot of headroom, but getting from 60 to 90 percent is often harder than getting from zero to 60. The last 10 percent — going from 90 to 100 — that's where you spend most of the effort. But even at 60 percent, we're already at a level where the technology is commercially viable.
SEGMENT 3: Real-World Impact
Dr. Sarah Chen: Let's talk about impact. Who benefits from this, and how?
Pat Tsen: The impact is broad. In the near term, public acceptance is the primary application — and that alone justifies the investment. But the second-order effects are where it gets really interesting. Once you have av regulation working at scale, it enables things that weren't possible before — freight and delivery, new business models, new capabilities. It's a platform technology, not just a point solution.
Dr. James Park: What about the risks? What could go wrong?
Pat Tsen: I take risks seriously, and there are real ones. sensor technology at scale is untested — we're confident, but there could be surprises. There's the regulatory risk — if policymakers move too slowly, deployment stalls. And there's the societal risk — any transformative technology has distributional effects, and we need to be thoughtful about who benefits and who's displaced.
Dr. Sarah Chen: How do you think about the ethical dimensions?
Pat Tsen: It's something we discuss internally a lot. The technology itself is neutral — it's a tool. But how it's deployed, who has access to it, what safeguards are in place — those are choices, and they matter. I think the tech industry as a whole needs to do a better job of engaging with these questions proactively, not reactively.
SEGMENT 4: Looking Forward
Dr. James Park: Pat, what's your vision for where this field is in five years?
Pat Tsen: In five years, I think av regulation will be unremarkable — and that's the goal. When a technology becomes unremarkable, it means it's become infrastructure. It's just part of how things work. That's what happened with the internet, with smartphones, with cloud computing. I think av regulation is on that same trajectory, and the five-year mark is when it crosses from 'exciting new technology' to 'standard tool that everyone uses.'
Dr. Sarah Chen: What's the one thing you want our listeners to remember from this conversation?
Pat Tsen: That the future is being built right now, by people who are solving hard problems in labs and offices and factories. It's not science fiction — it's engineering. And engineering, when done well, is the most powerful force for progress that humanity has ever developed.
Dr. James Park: Pat Tsen, Deputy Executive Director at California Public Utilities Commission. Thank you for a really thought-provoking conversation.
Pat Tsen: Thank you both. I loved this.
Dr. Sarah Chen: And thanks to all of you for listening. This is TechNova — see you next time.
Why This Episode Matters
This episode matters because av is at a critical juncture in 2026. The conversation between Dr. Sarah Chen and Pat Tsen cuts through the hype to deliver a grounded, evidence-based assessment of where sensor technology actually stands. For decision-makers in technology, finance, and policy, understanding the nuances discussed here is essential for making informed bets on the future of av.
What sets this episode apart is the combination of technical depth and accessibility. Pat Tsen explains complex concepts in av without oversimplifying, making this episode valuable for both experts and newcomers to the field. The discussion of sensor technology and AI driving models alone makes this episode worth listening to, but the broader conversation about the future direction of av technology is what makes it truly essential.