Despite uncertainty over the future of AI regulation in the US, business leaders are slowing efforts to control and manage the use of artificial intelligence as the risks posed by AI technology and associated litigation threaten companies’ brands and profits. Not likely.
President-elect Donald Trump has promised deregulation and plans to rescind President Joe Biden’s executive order on AI after taking office in January. But despite his promise to roll back regulations, it’s unclear how exactly President Trump will approach AI regulation.
President Trump announced on December 5th that he plans to name David Sachs as the White House’s “czar” of AI and cryptocurrencies. President Trump said in a post on the social media platform Truth Social that Sachs will guide his administration’s AI and cryptocurrency policy. Sachs is a former PayPal executive and venture capitalist.
Daniel Castro, vice president of the Information Technology and Innovation Foundation, said in a statement that Sachs brings significant technology experience to the role leading U.S. AI policy and is “an expert on what the U.S. government should do to improve global competitiveness.” “Providing strategic insight to policymakers.” . ”
Trump also maintains close ties to tech entrepreneur Elon Musk, who supported a proposed AI regulation bill in California earlier this year. Gartner analyst Aviva Litan said companies are facing a growing number of state AI laws, creating compliance complexities, and the Trump administration is considering a comprehensive federal law that supersedes state laws. He said that he may be forced to do so. But Musk has also been named to head Trump’s Department of Government Efficiency, which aims to cut regulations and cut federal agencies.
There is a lot of uncertainty about what will happen in the US
Aviva Ritan Gartner Analyst
“There’s a lot of uncertainty about what’s going to happen in the United States,” Litan said. “I think people expect Mr. Trump to play it safe. Mr. Trump said he was going to rescind Mr. Biden’s order, and that’s pretty much all people know.”
The number of AI lawsuits filed against companies is also increasing, particularly with the rise of generative AI and unresolved questions about copyright protection. A Forrester Research Q2 2024 survey of 106 GenAI decision makers found that 21% of business leaders responsible for generative AI expect an increase in legal investigations and litigation related to generative AI initiatives. has been reported.
Forrester analyst Ara Valente said unless AI regulations set rules and guardrails for companies using the technology, AI issues will be handled by the courts.
“There’s so much uncertainty in the United States,” she said. “If these issues are not resolved through legislation in Congress and questioned by government agencies as part of regulation, they will simply be resolved in the courts.”
Risk pushes AI governance to the forefront
Whether a company wins or loses, litigation takes time, effort and money, Valente said. As a result, companies are focused on AI governance and will need to “find their own sweet spot” when it comes to generative AI, he said.
As part of corporate AI governance efforts, business leaders should catalog and inventory the AI models they use and increase scrutiny of third parties that incorporate generative AI into their products, Valente said. It is said that there is
Additionally, while business leaders expect the approach to AI regulation to change under the incoming Trump administration, companies will still have to contend with local and state AI laws as well as global laws such as the EU AI Act. said Valente.
“Less regulation may mean fewer regulatory reporting requirements, but that doesn’t necessarily mean that how you manage AI risk will take a backseat,” Valente said. “They can’t take their foot off the pedal when it comes to diligence.”
AI governance vendors, including Holistic AI, offer free tools, such as Holistic AI Tracker 2.0, that help companies understand AI laws and regulations, as well as class actions and enforcement-initiated investigations related to AI. I am.
Holistic AI co-founder and co-CEO Emre Kazim said the company released Holistic AI Tracker 2.0 as a “resource for everyone in the community to use.” It is a database that tracks state, local, federal and global AI laws, as well as provides analysis on AI laws and regulations, he said.
Charles Kerrigan, advisor to Holistic AI and partner specializing in AI at international law firm CMS, helps businesses comply with AI law, particularly EU AI law. He said he uses Holistic AI Tracker 2.0 to stay on top of emerging AI laws.
“For me, this tracker addresses the issue of the amount of regulation that’s emerging right now,” Kerrigan said. “This is the only tool I can manage. I used to do things like word searches.”
Makenzie Holland is a senior news writer covering big technology and federal regulation. Prior to joining TechTarget Editorial, he was a general assignment reporter for the Wilmington Star-News and a crime and education reporter for the Wabash Plain Dealer.
