The Federal Trade Commission (FTC) recently launched an inquiry into generative artificial intelligence (AI) investment to see whether “investments and partnerships pursued by dominant companies risk distorting innovation and undermining fair competition.” In a new insight, Director of Technology and Innovation Policy Jeffrey Westling considers the potential harm of the FTC’s current “big is bad” approach to AI.

Key points:

• American technology companies currently lead the world in AI research, development, and deployment, but overly strict regulatory policies could jeopardize growth in the sector.
• The development of large language models and advanced machine learning capabilities benefits significantly from the resources that big tech firms can provide, such as leveraging their access to data, computing power, and engineering expertise.
• Adding overly strict regulatory roadblocks could throttle American AI leadership, jeopardizing both our economic growth and national security as nations across the globe race to lead in developing the technology.

Read the analysis