OpenAI, the company that created ChatGPT, has threatened to discontinue business in the European Union (EU) following the European Parliament’s adoption of its new AI Act. Although OpenAI’s CEO Sam Altman later denied such plans, the warning shows the need for continued dialogue on AI regulations. Regulatory collisions within the industry could be catastrophic. A possible U.S.-EU misalignment could cause inefficiencies, duplicated efforts, and opportunity costs. However, a divergence between EU and non-EU standards would lead to a fragmented AI regulatory landscape with different levels of accountability and restrictions.
The EU’s new AI Act shares similar flaws with past policies like the General Data Protection Regulation and Digital Markets Act. The EU’s approach is much more centralized and punitive when promoting ethical and responsible innovation. In contrast, the US AI Bill of Rights delegates regulatory decisions to agencies, whose authority in enforcing these regulations is unclear. It concentrates on a tailored, sector-specific approach. Therefore, Washington will have to determine whether the benefits of regulatory differentiation from the EU outweigh the costs.
OpenAI is a technology company that is focused on artificial intelligence research and deployment. The company was founded in December 2015 and aims to ensure that artificial intelligence benefits all of humanity. It has an array of investors that include LinkedIn co-founder Reid Hoffman and co-founders of Dustin Moskovitz and Cari Tuna.
Sam Altman is an entrepreneur, investor, and businessman based in the United States. Altman became president of Y Combinator in 2014 and stepped down in 2019 to become the CEO of OpenAI. In 2020, he stepped down as CEO of OpenAI and became the chairman. Altman has invested in several technology companies, including names like Airbnb, Stripe, and Reddit. He is also involved with high-impact philanthropic ventures via his family foundation, the Altman Foundation.
