Race Against the Machine: Entrepreneurship and AI Regulation
As we strive to leverage artificial intelligence (AI) for societal good, a critical question arises: How should we regulate AI? While concerns about runaway AI systems and potential job losses warrant consideration, the threat of overregulation could inflict greater damage, hampering innovation, entrepreneurship, and economic expansion in the process. We need a balanced approach, acknowledging the necessity for regulation to ensure safety and the potential harm of over-regulation.
At the core of the AI development landscape is the open-source community. This collective of researchers, developers, and enthusiasts provides open access to crucial AI codes, libraries, and tools, enabling democratized AI development. The open-ended nature of AI raises the question of whether we can regulate an idea that is truly open.
We have seen examples in the past where attempts to regulate open-source entities have been challenging. Take the case of The Pirate Bay, a file-sharing website that governments have tried, and failed, to shut down due to its source code's open nature. This underlines the complex relationship between open-source technology and regulation.
Excessive regulation may foster an uneven competitive landscape. Deep-pocketed tech giants can meet regulatory demands easily, consolidating their dominance, while smaller startups and open-source projects struggle to compete. This disparity is not only detrimental to competition but is also corrosive to the open-source movement.
Moreover, overregulation could also decelerate AI adoption, potentially stunting economic growth. McKinsey's projections suggest AI could contribute around $13 trillion to the global GDP by 2030, a target we risk missing if regulation deters innovation and adoption. AI's integration across diverse sectors — from healthcare to manufacturing — promotes efficiency, curbs costs, and bolsters economic productivity.
Far from being solely a job threat, AI presents an opportunity for economic advancement and skills enhancement. As per the World Economic Forum, AI could generate 12 million new jobs by 2025. Besides creating roles in AI development, implementation, and maintenance, AI can liberate human workers from monotonous tasks, enabling strategic, creative job engagements. This potential job boom will rely on the continuous innovation from tech enterprises and the open-source community.
The AI-driven EdTech industry’s boom during the COVID-19 pandemic is a prime example of AI's potential. AI-enabled platforms such as Coursera and Khan Academy experienced a surge in usage, reflecting the need for personalized, scalable education solutions. Excessive regulation could have restricted this growth and deprived millions of accessible, individualized learning experiences.
This perspective does not dismiss the necessity for some form of regulation. Undeniably, AI poses risks, including privacy breaches and potential biases. We need to establish protective measures and frameworks for responsible AI development. One effective way to balance promoting innovation and economic growth is by utilizing a self-regulatory approach that takes into account the perspectives of the open-source community. This can be accomplished by establishing clear guidelines and promoting the adoption of best practices. By doing so, we can foster an environment that values innovation while also ensuring that economic growth is not hindered.
As we look ahead to a future where AI plays an increasingly significant role, it's natural to have concerns about how we regulate this powerful technology. However, it's important to acknowledge the significant benefits that AI can offer to both our economy and society. As such, we shouldn't allow our concerns to stifle innovation, nor should we ignore the tremendous potential of a future powered by AI. While there are certainly risks involved, the potential rewards are truly limitless.
Branson Boggia is an Artificial Intelligence Graduate Student in the Department of Computer Science at Kent State University’s College of Arts and Science. Ahmad Al Asady is an assistant professor of management, Challey Institute faculty scholar, and research fellow at the Center for Entrepreneurship and Family Business at North Dakota State University.
