Placing onerous restrictions on AI will only result in bad actors having the advantage as we remain mired in bureaucracy . Over-rotating on regulation ensures that market forces will be mitigated in developing advanced AI technologies , and government regulation will be the primary driver . This is the wrong order .
There are three distinct phases to ending up with a law . First , there is litigation . Market forces determine what is acceptable and what the public is willing to pay for and tolerate . If that does not achieve the desired governmental interest , then the second phase is regulation .
Enacting rules on covered entities , example publicly traded companies , pharma , financial institutions , to compel compliance . If the first two steps are not adequate , then it is the proper role of government to bring clarity to the market by passing legislation .
The poster child in the US was the passage of the Sarbanes-Oxley Act in response to corporate malfeasance and cooking of the books . Massive failures and fraud were first litigated . Then the Securities and Exchange Commission , SEC passed additional regulations to improve transparency , oversight , and financial controls . When that did not achieve the desired outcome , the Sarbanes-Oxley Act was passed in 2002 – 423 to 3 in the House and 99 – 0 in the Senate .
We are not to the legislative phase yet . Jumping over the natural progression will only stifle the valuable development in AI , hamstring companies looking to break out with new technologies , and embolden our adversaries . •
Over regulation of AI
• Government regulation in software does not work . It has been tried before .
• Encryption source code is an expression of free speech protected under the First Amendment of US .
• This time the approach is not to regulate the AI code , but the outcomes produced by the code .
• The proposed European Union AI Act incorporates a risk-based assessment : minimal , limited , high , and unacceptable .
• There are twenty-seven countries in the EU with twenty-seven different ideas about what is best for their
own country .
• This creates a development and compliance headache , as well as potentially stalling entry into the EU markets by the US .
• Report after report , article after article , analysis after analysis makes it clear China will use commercially developed AI for military purposes .
• Placing onerous restrictions on AI will only result in bad actors having the advantage as we remain mired in bureaucracy .
• Over-rotating on regulation ensures that market forces will be mitigated in developing advanced AI technologies .
• Government regulation will be the primary driver of AI which is the wrong order .
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