TL;DR:
- The current regulatory frameworks for AI are inadequate, and a new approach is needed to address the impact of AI on the public interest.
- The new regulatory framework must balance the need for accountability with the need for innovation.
- The creation of a specialized, focused federal agency staffed by experts is needed to regulate AI in the public interest.
- The new agency should embrace an agile risk management approach consisting of risk identification and quantification, behavioral codes, and enforcement.
- The future impact of AI is unknown, but past experience with the digital era has shown that failing to protect the public interest can lead to harmful consequences.
- There is a growing consensus among policy leaders on the need for AI regulation, and the Biden administration’s AI Bill of Rights is a step in the right direction.
- The new regulatory framework must be tailored to the specific risks posed by each type of AI and be designed to be agile and innovative.
- It is imperative to establish public interest standards for AI technology to counteract commercial incentives and prevent harmful consequences.
Main AI News:
The breakneck speed of advancements in artificial intelligence (AI) is starkly at odds with the sluggish regulatory frameworks that have been established to address the impact of the technology on the public interest. The existing private and government oversight systems, designed to handle the industrial revolution, are ill-equipped to handle the AI revolution.
To effectively regulate AI, a radical new approach is needed – one that mirrors the revolutionary nature of the technology itself. In response to the challenges posed by industrial technology, the American people rallied to develop new concepts such as antitrust enforcement and regulatory oversight. However, policymakers have yet to fully address the unique challenges posed by the digital revolution, let alone the even greater ones posed by AI.
The response to intelligent technology must be more proactive and nuanced than the hands-off regulatory approach we have taken with digital platforms thus far. The new reality of consumer-facing digital services, whether platforms like Google, Facebook, Microsoft, Apple, and Amazon or AI services led by many of the same companies, demands the creation of a specialized, focused federal agency staffed by highly-compensated experts.
The traditional approaches to consumer protection, competition, and national security that worked in the industrial era are no longer adequate in the face of the new challenges posed by AI. The regulation of AI demands specialized expertise that encompasses not just the technical aspects of the technology but also its social, economic, and security implications. Balancing the need for accountability with the need for innovation is a delicate task that requires a new regulatory framework.
Attempts to slow or stop the AI revolution are as futile as trying to stop the sun from rising. The information revolution that followed Gutenberg’s printing press was met with resistance from the Catholic Church, but this resistance was ultimately unsuccessful. Similarly, efforts to stall the AI revolution are likely to be met with the same outcome.
There is a growing consensus among national policy leaders on the need for AI regulation. Senate Majority Leader Chuck Schumer has called for guidelines for the review and testing of AI technology, while the Biden administration’s AI Bill of Rights is a step in the right direction. However, the establishment of rights must be accompanied by obligations and responsibilities for AI providers to protect those rights.
Federal Trade Commission (FTC) Chair Lina Khan is correct in pointing out that there is no AI exception to existing laws, but these laws were written for a different era and are ill-equipped to deal with the challenges posed by AI. Relying on sectoral regulators such as the FTC, Federal Communications Commission (FCC), Securities and Exchange Commission (SEC), Consumer Financial Protection Board (CFPB), and others to address AI issues on a piecemeal basis is not enough. What is needed is a specialized body that can identify and enforce the broad public interest obligations of AI companies.
The Commerce Department’s National Telecommunications and Information Administration (NTIA) is making progress in soliciting ideas for AI oversight, but a specialized body is needed to effectively regulate AI in the public interest. This body should be staffed by experts with appropriate compensation and should be empowered to establish a coherent overall AI policy.
A New Approach to AI Regulation While the creation of a new agency is a critical component of AI regulation, the real revolution must be in how that agency operates. The goal of AI oversight must be twofold: to protect the public interest and promote AI innovation. The old, top-down micromanagement that characterized industrial regulation will stifle the benefits of AI innovation. Instead, AI oversight must embrace an agile risk management approach.
This new regulatory paradigm would consist of three key elements:
- Identification and quantification of risk: The impact of AI technology is not uniform. AI that affects online search choices or gaming has a different impact than AI that affects personal or national security. Thus, oversight must be tailored to the specific risks posed by each type of AI.
- Behavioral codes: Instead of rigid utility-style regulation, AI oversight must be agile and innovative. Once the risks have been identified, behavioral obligations must be established to mitigate those risks. This requires a new level of government-industry cooperation, where the new agency identifies an issue, convenes industry experts to work with the agency’s experts to develop a behavioral code, and determines whether the code is an acceptable solution.
- Enforcement: The new agency must have the authority to determine whether the code is being followed and impose penalties when it is not.
The Future of AI is Unpredictable The future impact of AI is unknown, but we have learned from the digital era that failing to protect the public interest in the face of rapidly changing technology can have harmful consequences.
As new AI technology is being developed and deployed without sufficient consideration for its impact, it is imperative that we establish public interest standards for this powerful new technology. Without a greater force to counteract the commercial incentives of those seeking to apply the technology, the early digital era may repeat itself, with innovators making the rules and society bearing the consequences.
Conlcusion:
The rapid advancements in artificial intelligence (AI) have highlighted the need for a new approach to regulation that balances the protection of the public interest with the promotion of innovation. The creation of a specialized, focused federal agency staffed by experts is a critical component of this new approach, and the agency should embrace an agile risk management approach to regulation. This includes the identification and quantification of risk, the development of behavioral codes, and the enforcement of these codes.
From a market perspective, this shift in regulatory approach signals a heightened level of scrutiny and accountability for AI companies. Companies that prioritize the public interest and adopt responsible practices are likely to be better positioned in the market, while those that ignore the need for regulation may face penalties and reputational harm.
Additionally, the new regulatory framework may also create new opportunities for innovation as companies strive to meet the public interest obligations set forth by the new agency. Overall, the revolutionizing of AI regulation is a positive development for the market, as it will promote responsible practices and encourage innovation.
