OpinionWhich country will be the first to establish AI-related norms and conventions?
Opinion
Which country will be the first to establish AI-related norms and conventions?
"Technology and world economies received a much-needed injection of energy and new blood from artificial intelligence, but the dangers of AI are more tangible than ever before," writes Liron Rose
Last December, EU officials engaged in feverish discussions around the clock to draft legislation regulating the field of AI across the continent. Within 36 hours, they announced a starting point to guide high-tech companies and startups in the race to dominate the global artificial intelligence industry. Directives from the US, UK, and China have all been issued, indicating a full steam ahead in the race to regulate the industry, with the legislation expected to take effect in 2025 at the earliest.
As a result, governments are walking a tightrope between generating profits and momentum from the technology and avoiding the dangers that lurk around the corner, which are difficult to ignore, and it is a mistake to believe that they won't materialize.
AI significantly impacted the American stock market last year, with a boom of tens of percent after an unprecedented year, which included an inflationary crisis and recessionary winds. There was an increase of over 44% in the Nasdaq, and the seven biggest tech corporations in the world enjoyed significant momentum and huge profits at a time when governments are already anticipating tax revenues from corporate profits, capital gains taxes, and more.
In a field where the hidden is greater than the visible, more than a trillion dollars is at stake.
According to Bloomberg Intelligence (BI), the market value of generative artificial intelligence is expected to grow significantly in ten years, reaching approximately 1.3 trillion dollars, up from only 40 billion dollars before. Simultaneously, the leap and phenomenal demand for AI products will contribute to software companies' revenues, estimated at 280 billion dollars, thanks to infrastructure products and special assistants. The report also claims that companies such as Amazon, Microsoft, Google, and Nvidia could be the biggest beneficiaries of the move, as organizations transfer more workloads to the public cloud. AI likely generates hundreds of billions of dollars in direct and indirect taxes for the American economy every year.
However, sometimes there is more to AI than meets the eye. As some artificial intelligence technologies today work like "black boxes," which are impossible to penetrate by outsiders, it is unclear how different regulators can closely and comprehensively monitor their operation.
AI poses a risk to the financial system, according to the regulatory team of the Financial Stability Oversight Board in the US, announced in mid-December. One of the main concerns is that artificial intelligence models, questioned for their objectivity and stability, may destabilize banks because they can produce or even hide biased or inaccurate results. The main concern nowadays is the lack of transparency and bias in data generated by artificial intelligence tools.
While Israel is currently engaged in an ongoing war in Gaza and the north, artificial intelligence can also be used as a deadly weapon. In November 2020, we allegedly got proof of this when a sophisticated machine gun powered by artificial intelligence and operated remotely by satellite assisted in eliminating Mohsen Fakhrizadeh, the head of Iran's nuclear program. The artificial intelligence in this case and its accuracy helped prevent harm to those unaffected. It can, however, also be used for indiscriminate mass killing, and this must also be considered.
Technology and world economies received a much-needed injection of energy and new blood from artificial intelligence, sweeping away a technology industry that has become more optimistic than ever before, believing that anything is possible. In this environment, entrepreneurship thrives, and the economy develops, but the dangers of AI are more tangible than ever before. Is it possible for governments to find legislation and regulations that are effective without limiting the field's freedom of action too much? Can AI really be supervised? Almost all economies will be affected by the answers to these questions.
The author is a serial entrepreneur, venture capitalist and has advised tech companies for 20 years
First published: 09:38, 01.02.24
