Title: Keeping Pace with AI Regulation: A Guide to Ensuring Swift Action
Dave Link serves as CEO and co-founder of ScienceLogic. As artificial intelligence (AI) gains momentum, regulatory efforts have struggled to keep pace. Over 100 AI-related bills have been introduced to Congress, indicating a desire to advance AI policy. However, the U.S. has yet to match Europe's pace, which enacted its AI policies in 2024.
Initially, an AI roadmap revealed in May 2024 faced criticism for lacking basic protections related to data copyright, usage, and privacy, as well as a $32 billion funding allocation that Congress didn't provide. In September 2024, nine bipartisan bills passed the House Committee on Science, Space and Technology. Yet, according to Rep. Zoe Lofgren, these bills underfund the needed activities significantly.
With federal regulation lagging, states have introduced their laws—an approach that often results in ineffective regulations that may stifle innovation. Virginia's executive order on AI, introduced in January 2024, focuses on policy standards for AI implementation in agencies and disclaimers for outcomes generated by AI. Colorado, though, became the first state to introduce comprehensive AI regulations to fill the regulatory void by regulating AI use in consumer decision-making, such as jobs, housing, and lending, with the law taking effect in 2026.
California, home to major AI companies like Google, Meta, and OpenAI, also proposed legislation, the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act (SB 1047). This bill, which would have required developers and companies to test their AI models, did not offer guidelines on AI use, which is equally crucial. Governor Gavin Newsom vetoed the bill, citing concerns that it may potentially curtail innovation.
Federal regulations are essential to ensure proper oversight of AI without hindering its primary value proposition—continued innovation. The upcoming wave of proposed regulations should address both how AI is developed and used, with transparency serving as the foundation. This would require AI models to disclose all data sources, obtain consent and compensation for private data and copyrighted information use, and seek permission and anonymization for all personally identifiable information (PII).
Given AI's novel nature, privacy and transparency are non-negotiable. However, many current regulations struggle to meet these demands, often resulting in models resembling black boxes and citizens being unaware of how their data is being utilized. Addressing this regulatory void will not stifle innovation but, instead, foster it by enabling AI to be accountable and trusted with various types of data.
In the absence of sufficient federal regulation, enterprises must take AI governance into their own hands. While this may be challenging due to limitations in technical transparency and explainability, and discrepancies between how different departments within an organization use AI, the benefits outweigh the workload. By promoting cross-functional collaboration, developing clear standards for each AI element, and ensuring governance frameworks are flexible, organizations can minimize data collection, provide users control over their data, and improve overall security.
Regulating AI is crucial but avoiding ineffective regulations that stifle innovation and innovation is essential. Although federal privacy bills remain elusive, the lack of understanding of what is required to properly oversee AI technologies demands action. While state legislation could appear as the solution, it creates an unfair playing field for AI and is short-sighted. Effective federal regulations built on privacy, transparency, and trust are the way forward in ensuring an accountable and trustworthy AI landscape.
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Dave Link, as the CEO of ScienceLogic, could advocate for clear and effective AI regulations to promote innovation and trust in the technology sector. Despite some state-level efforts, linking up with relevant legislators through networks like the Website Technology Council could help CIA executive Dave Link push for federal regulations that strike a balance between oversight and innovation.
