AI is facing a regulation crackdown with or without Congress
The emergence of potent novel generative artificial intelligence (GenAI) instruments such as OpenAI's ChatGPT has triggered a mix of enthusiasm regarding the potential brought forth by this technology and apprehensions regarding its potential hazards.
However, as Congress debates the possibility and methods of regulating the fast-evolving technology on a national scale, AI companies are currently encountering enforcement measures from various directions that might establish boundaries even without intervention from Capitol Hill.
Shortly after ChatGPT's learning language model (LLM) became accessible to the general public towards the end of last year, it quickly raised worries about privacy, copyright violations, and safeguarding data. This sparked numerous legal concerns and cautionary signals.
A law firm in California alleges that OpenAI's utilization of web-scraped information infringes upon the privileges of numerous online users. (CFOTO/Future Publishing via Getty Images / Getty Images)
In just a few months, several government agencies started expressing their intentions to utilize existing legislation to initiate actions against AI companies.
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Earlier this week, the Federal Trade Commission (FTC) took the initiative by formally initiating a investigation into OpenAI's products. The purpose of this inquiry is to determine whether there have been any breaches of consumer protection or data privacy regulations, and the FTC has expressed its intention to impose penalties on the company if necessary.
Christine Lyon, who holds a global position overseeing the data privacy and security department at legal firm Freshfields, states that it wouldn't be unexpected if the FTC approached other AI enterprises with requests for information. Lyon also suggests that there may be additional measures taken by other authorities, including the Equal Employment Opportunity Commission (EEOC) and state agencies.
According to Lyon, when the FTC intervenes, as it did with OpenAI, it can spark the attention of state prosecutors who exhibit a similar interest. This is because they possess state-level legislations that safeguard consumers' rights regarding privacy and data protection.
Legal actions regarding artificial intelligence started surfacing prior to the FTC's inquiry becoming public knowledge. Comedian Sarah Silverman, along with two authors, recently lodged a potential collective lawsuit against OpenAI and Meta, the parent company of Facebook, claiming that their content was utilized without authorization for chatbot training purposes.
Christine Lyon, who holds the position of Global Co-Head of Data Privacy and Security at the law firm Freshfields, according to the information provided by Freshfields on Fox News.
"In the legal system of the United States, we have court decisions that essentially establish rules, and regulators such as the FTC who enforce actions that also function as rules, in practice. Additionally, we have separate legislation apart from these rules," Lyon stated in an interview with FOX Business. "It will be fascinating to observe the outcomes of these cases as there will be numerous inquiries regarding which laws are applicable and how, considering the absence of laws that encompass all the activities in question."
Elon Musk claims that within the next 5-6 years, there is a possibility of the emergence of 'digital superintelligence'.
In my opinion, the possibilities of generative AI are extremely vast. This could create a strong motivation to fiercely advocate for its development, to overcome any related challenges and seek dismissals or settlements in court cases. However, I believe that these legal proceedings may ultimately pave the way for increased backing towards regulatory measures.
It is uncertain as of now whether or at what time Congress will enact any measures, but businesses will soon need to adhere to regulations imposed by foreign countries.
Lyon pointed out that the European Union is swiftly progressing with an AI law, which American AI companies need to take into consideration since it is becoming more challenging for US firms to evade regulation from the EU if they engage in business within any of the member nations or provide services to their inhabitants.
Lawmakers in the United States are contemplating the implementation of regulations for emerging artificial intelligence (AI) technologies. However, a number of specialists argue that the rapid progress of GenAI makes this endeavor unachievable.
The attorney from Silicon Valley, who has been practicing law there for a long time, mentioned that it is extremely challenging to anticipate if Congress would be able to reach a consensus on a regulatory structure for AI. He pointed out that for more than ten years, legislators have been attempting to formulate a federal privacy legislation, but have not succeeded thus far.
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Lyon expressed that we are facing a challenging situation. We must meticulously ponder over the matter at hand. What are the potential negative effects? What advantages can we gain? How can we find the right equilibrium, keeping in mind that it might vary greatly compared to the perspectives of other nations?
She further commented, "Honestly, if we consider the reality that numerous prominent participants in this industry are American corporations, I believe that aspect also plays a role."
