There’s a lot of legislation and regulation to cover, and I’m breaking it into two themes. First, let’s talk about what has strategic implications.
First, a perspective on AI in 2024 as it relates to politics. According to NBC News, Lawmakers in most states need to catch up in enacting policies to address the challenges posed by artificial intelligence (AI) and deepfakes in political campaigns. Only three states passed laws related to these issues in 2023, while others introduced bills that stalled or failed. With the 2024 election approaching, proponents of regulation are urging states to take action, as different approaches could provide valuable insights. The reasons for the slow response include reconciling regulations with First Amendment rights, the rapid evolution of AI and deepfake technology, and a lack of understanding among lawmakers. State-level legislation in Washington, Minnesota, and Michigan could serve as models for future laws. The federal government has not taken significant action, making state-level efforts crucial in addressing the potential threats of deepfakes in elections.
And from the Washington Post, Fears about the risks of artificial intelligence (AI) have extended beyond Silicon Valley to the legal system, global business gatherings, and top Wall Street regulators. The Financial Industry Regulatory Authority (FINRA) and the World Economic Forum have identified AI as a significant risk, with concerns about misinformation and direct consumer harm. The Securities and Exchange Commission (SEC) chairman, Gary Gensler, has warned about the threat to financial stability posed by AI models used by investment firms. The potential risks of AI include biased decisions, privacy concerns, and the potential for global market meltdowns.
From IT Pro, The UK government is proposing new laws to protect data centers from cyber attacks, physical threats, and extreme weather. The Department for Science, Innovation and Technology (DSIT) believes that existing safety practices need to be revised, given the critical national importance of data centers. The proposed laws would establish minimum security and resilience requirements for data centers and create a regulator to oversee incident reporting and risk mitigation. Designating data centers as critical national infrastructure would give them greater support and scrutiny. The consultation on these proposals is ongoing, seeking input from industry stakeholders.
Microsoft Vice Chair and President Brad Smith stated that the White House’s engagement with companies on their AI capabilities, including giving them “homework” assignments, helped accelerate action on the technology. The Biden administration requested firms to demonstrate their commitment to the safe and transparent use of AI, and Microsoft was among the first to submit a draft. The feedback received allowed Microsoft to build upon its submission and speed up the pace of progress.
Working backward, we have evidence that the Biden Executive order on AI has an impact, and Microsoft embraced the dialogue. Companies developing or using AI should take a proactive stance in AI governance, engaging with regulatory bodies and demonstrating commitment to safe and ethical AI practices.
Governments are moving on critical infrastructure, too, and I’d note that considering data centers critical infrastructure is both common sense and the reality of our current world. Expect more.
Finally, moving on to AI risks. I highlight the AI risks in politics and financials for two reasons. First, as technologists, listeners should be prepared for questions from customers. And second, the opportunity is to advise customers proactively on navigating these concerns.