Politicians in Congress should not be quick to accommodate the regulatory requests pushed by OpenAI CEO Sam Altman. Altman recently testified before the Senate Judiciary Committee on Privacy, Technology, and the Law, urging the federal government to establish strict regulations for Artificial Intelligence (AI) development. While Altman insists the regulations will create a safer future, Congress should take caution in order to protect the industry and consumers from potential overregulation.
Altman claims that AI can bring disastrous implications such as job losses and the spread of misinformation. However, predictions of this kind have a tendency of being wrong, as technology has constantly proven to be an effective job creator. Additionally, since misinformation already exists in mainstream news, social media, and government, OpenAI’s regulation is highly unlikely to solve the problem altogether.
It is more likely that OpenAI is pushing for regulations as a way to keep competitors out. Laws that increase compliance costs are beneficial for large and established organizations, making it harder for startups to race against powerful companies. Not only does this protect them from competition, but lobbying activities make it possible to shape the regulations to suit their interests.
OpenAI’s proposals involve introducing a regulatory body similar to the Nuclear Regulatory Commission (NRC) and establishing licensing requirements for AI developers. Senator Dick Durbin (D-IL) labelled these requests as “historic”, yet this type of behavior from major organizations is rather common. Facebook famously called for more regulation of social media in 2021 to unload the responsibility of content moderation, whereas Amazon has been pressing for a $15/hour minimum wage over the past few years to create costs for its rivals.
Due to the risks of overregulation, Congress must weigh the effects of new laws very carefully before deciding. Imposing heavy regulations regarding the development of AI would slow innovation in the industry, impacting the consumer benefits of this revolutionary technology, a scenario similar to what the NRC has done with nuclear energy. Putting the regulations in the hands of a powerful company will only serve to make it more difficult for new and smaller players to enter the market.
The power and potential of AI are immense, and OpenAI is among the few leading the charge in the industry. However, without a competitive industry, innovation and progress will ultimately be limited. Congress must be wary of allowing fear or advocacy of widespread regulation to lead to decisions that would damage the industry and consumer choice.
