How to Avoid Regulatory Spaghetti with AI Regulation

The UK and the EU face an unenviable challenge. Governing bodies must protect consumer and civic interests while grappling with trying to apply rules to a complex technical landscape that moves much faster than parliamentary processes. Keeping markets fair and open for new entrants is another priority for supporting the region’s ability to compete in the global technology race.

So how can regulators across the EU and the U.K. reach a happy medium? Neither the U.K. nor the EU will realize their ambitions in the AI leadership race without finding a way to do both and empower innovation while also safeguarding citizens’ data. 

Look Back to Drive AI Forward

This is not the first time that innovation has clashed with regulation. In many ways, the current AI debate is similar to the automotive revolution. 

When cars first appeared on roads they unlocked life-changing mobility for millions of people. But at the same time, there was a chasm of regulations to police traffic for road safety, manufacturing standards and even framework licenses. The regulatory response did not inhibit the proliferation of vehicles, even though there were serious safety concerns to address. 

Regulators’ approach to AI should be similarly measured. It should strive to preserve the transformative potential of AI technology while making sure it is used safely and ethically.

Related:Microsoft, Amazon, IBM Pledge to Publish AI Safety Measures for Models

 Addressing the Challenge of Balance

The best markets are those that are competitive and encourage innovation. Legislators hold the keys to establishing an ecosystem that appreciates AI as the exciting opportunity for invention that it is. In the same way, no one wants a world where cars drive on whichever side of the road they wish, without speed limits or traffic laws, no one wants a world where AI is exploited without any regard to social responsibility. We need sensible controls that provide the space to sustain and support innovation without excessive risk-taking.

The invention of brakes gave drivers the confidence to go faster precisely because they knew they could stop and were in control of the vehicle. Businesses must be allowed in the driver’s seat. They need to be given the same confidence to develop and steer AI technology at the direction and pace of innovation, while also knowing where and how to stop.

The EU’s risk-based approach is a strong start, but balance is a two-way street. In the burgeoning AI age, data is both an asset as well as a product. As a result, data governance, sovereignty and privacy are vital.

To meet legislative demands and the interests of citizens and the economy, companies must take the correct protective measures to get the most out of AI while maintaining compliance. Companies should adhere to strict data ethics and governance principles, and ensure their data infrastructure is robust to keep any citizen data secure.

Related:Meta Halts AI Training in EU, Brazil Amid Regulatory Concerns

Ultimately, if we see a costly and complex regulatory regime in place, this runs the risk of closing off emerging tech talent houses, as well as investment across the U.K. and the EU. To avoid this, regulators should learn from other successful ventures and previous legislation to see how the balance between regulation and innovation can be struck.

Avoiding roadblocks

The EU is driving a comprehensive set of new regulations that aim to shape the future of our digital society. The interplay between all of these, including GDPR, Data Act, CRA, NIS2 and the AI Act, will be crucial in empowering safe innovation – or inhibiting it altogether. While commendable, there’s a real possibility of conflicting rules on the use, privacy and security of data as multiple rules and guidelines, both horizontal and vertical, are being developed simultaneously. 

A common-sense approach to enforcement is important as organizations get to grips with the new regulations. Otherwise, the sheer volume of regulations could create inertia when innovation should be front and center. Compliance can be resource-intensive and smaller, more innovative organizations may be at a disadvantage compared with larger competitors with dedicated teams in place.

The fact that autonomous vehicles are now the realm of reality rather than fiction is a testament to how regulations can facilitate innovation while protecting consumers. History shows that it is possible to do both and regulators need to replicate this middle ground for AI regulation. This will be crucial in mitigating risks while ensuring the accessibility and benefits of this technology for all.