January 22, 2020
How Should the Federal Government Regulate Artificial Intelligence?
The rise of artificial intelligence (AI) across the economy has led the Trump Administration to produce guidance on regulating AI. The guidance favors a light-touch approach that encourages the market to foster innovation. While a heavier regulatory approach could reduce risks in some cases, the potential benefits of increased innovation in AI outweigh these risks, writes AAF’s Director of Regulatory Policy Dan Bosch.
The Trump Administration’s market-oriented approach to regulating AI, rather than a precautionary approach, is more likely to maintain an environment where companies and individuals can innovate. While clearly stating there is a role for regulation when it comes to AI, the administration is focused on getting out of the way and allowing private companies to innovate and compete on a level playing field. The likely result is that AI innovation will increase productivity, and thus economic growth.
In addition to the economic benefits, there is another compelling reason to avoid taking a precautionary approach to regulating AI: potential safety improvements. This reason is particularly true in the transportation sector. While this draft memorandum is the first step in creating a more formal policy toward AI regulation, federal agencies in recent years have taken regulatory steps that prove the value of a light-touch rather than precautionary approach.