The firing of Sam Altman shows that Biden does not really control AI
CbatGPT developer OpenAI announced last week that it had fired CEO Sam Altman due to a lack of confidence from the board – only to see 90% of OpenAI's employees return to the company after threatening to quit. The firing has sparked excitement from companies offering to match OpenAI's salaries to attract top talent.
The debacle — and the associated lack of transparency — highlighted the importance of regulating AI development, particularly with regard to security and privacy. Companies are rapidly developing their artificial intelligence components and the evolution of capabilities can move a company ahead of others and current regulations. In taking that action, President Joe Biden has been relying on executive orders that do not require input from Congress. Instead, they rely on agency bureaucrats to interpret them — and they could change when a new president is inaugurated.
Biden signed an executive order earlier this year dealing with “safe, reliable, and trustworthy artificial intelligence.” AI has ordered companies to protect workers from ‘harm', over speculation they could potentially lose their jobs. It also tasked the Office of Management and Budget (OMB) and the Equal Employment Opportunity Commission (EEOC) in part with establishing governance structures within federal agencies. He also asked the Federal Trade Commission (FTC) to review itself and determine whether it has the authority to “ensure fair competition in the AI marketplace and protect consumers and workers from potential harms enabled by the use of AI.”
Biden's executive orders won't last long.
A fundamental problem with an executive fiat-led approach is its weakness and limited scope. The SEC and CFTC's (mostly unsuccessful) attempts to classify cryptocurrencies as securities, the agencies that make the rules, can create confusion and fear among investors, and ultimately leave them open to interpretation by the courts.
Related: WSJ Controversy Fuels US Lawmakers' Crusade Against Crypto
Policies developed by agencies without legislative support are also unsustainable. While public input is essential to the passage of agency-backed regulations, the legislative process allows users of artificial intelligence and digital assets to have a stronger voice and help pass laws that address the real problems users face — instead of problems created by often ambitious bureaucrats.
BREAKING: In a sudden turn of events, OpenAI has signed a deal to bring Sam Altman back to the company as CEO.
Initially, there will be a new board of directors consisting of Brett Taylor, Larry Summers and Adam D'Anlono.
Less than 1 week after Sam Altman was fired, OpenAI…
— Kobeissi Letter (@KobeissiLetter) November 22, 2023
Biden's inability to address the complex ethical implications of implementing AI on a mass scale is dangerous. Concerns such as algorithmic bias, surveillance and invasion of privacy are rarely addressed. Those issues should be resolved by Congress, made up of elected officials, not agencies made up of appointees.
Related: 3 Things Driving Ethereum and Bitcoin in the Next Bull Market
Without the rigorous debate that Congress needs to pass legislation, there is no guarantee of legislation that promotes security and privacy for everyday users. Specifically, users of artificial intelligence must control how this automated technology uses and stores personal information. This risk is particularly acute in the field of AI, where many users fail to understand the underlying technology and the serious security risks associated with sharing personal data. We also need laws that ensure companies are conducting risk assessments and responsibly maintaining their automated systems.
New #OpenAI board
Brett Taylor, former chairman of the board of Twitter and president of #salesforce, #Cura CEO Adam D'Angelo.
Former Treasury chief Larry Summers joins https://t.co/95Y4uhuPWM
— Susan Li (@SusanLiTV) November 22, 2023
Relying on regulations issued by federal agencies will ultimately lead to confusion — consumers will trust artificial intelligence. This exact scenario played out with digital assets after the SEC filed charges against Coinbase, Ripple Labs, and other crypto-involved institutions, causing some investors to fear their involvement with crypto companies. A similar situation could arise in the AI field, where the FTC and other agencies are suing AI companies and tying up important cases in the court system for years.
It is vital that Biden engages Congress on these issues rather than hiding behind the executive branch. Congress, on the other hand, should rise to the occasion by enacting legislation that incorporates the concerns and aspirations of various stakeholders. Without such collaborative efforts, the United States risks repeating the pitfalls it faced in the digital resources domain. Above all, the security and privacy of American citizens — as well as many around the world — is at stake.
John Cahill is an associate in the White Plains, New York office of the national law firm Wilson Elsers. John focuses his practice on digital assets, and ensures that clients comply with current and evolving laws and regulations. He earned a BA from Saint Louis University and a JD from New York Law School.
This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.
