Future of AI: EU AI Act Fails to Strike Sensible Balance

On Friday, Dec. 8, lawmakers in the European Union reached a political agreement on the AI Act, the world’s first comprehensive set of rules to regulate AI.

Why it matters: As countries debate how to best harness the potential benefits of AI, while managing its possible risks, the EU unsurprisingly has emerged as the first to regulate.

Our Take: The U.S. Chamber remains concerned the EU AI Act fails to strike a sensible balance between regulating for risk and promoting innovation. There is little reason to believe that the EU AI Act will incentivize European competitiveness and may open the door to discriminate against U.S. firms. The Chamber remains dedicated to advocating for a responsible AI regulation that also delivers economic progress. 

White House AI Policy in the Spotlight

December 8, 2023

To kick off a week marked by White House AI policy discussions, the U.S. Chamber submitted comments to the Office of Management and Budget regarding its Draft Guidance on the federal government’s approach to acquiring and using AI systems.  

A hearing titled ‘White House Policy on AI,’ hosted on Wednesday by the House Oversight Subcommittee on Cybersecurity, Information Technology, and Government Innovation, served as another avenue for discussing the implications of this Draft Guidance, as well as the scope and impact of the roughly 150 requirements associated with President Biden’s recent AI Executive Order. 

Why it matters: The Chamber believes that it is vital for the government to develop rules and regulations that do not create unnecessary barriers for appropriate adoption of AI. Given the complexity of the issues involved in this area and other concurrent and overlapping federal regulatory requests, the Chamber was disappointed in OMB’s unwillingness to extend the comment period on its Draft Guidance. 

However, the Chamber was still able to provide feedback on the scope, AI governance, reporting requirements, responsible innovation, managing risk, and definitions in the Guidance. We will continue to provide feedback to the Administration in the weeks and months ahead.

Looking ahead: In a letter to House Oversight regarding their Wednesday hearing, the Chamber not only requested that Congress exert its oversight to ensure relevant stakeholders have adequate time to provide comprehensive feedback on federal AI adoption policy, but also outlined the importance of IT modernization within the federal government. 

A Regulatory Patchwork is Not the Answer

November 30, 2023

In an open letter to state leaders, the U.S. Chamber of Commerce and more than 60 state and local chambers from across the country called for the prioritization of AI development and adoption and the opposition of a patchwork of regulations.

Why it matters: As AI continues to evolve rapidly, it opens new doors to industry transformation, investment opportunities, job creation, and benefits businesses of all sizes. 

Implications of a Regulatory Patchwork: A patchwork of state-level proposals to regulate artificial intelligence, however, threatens to slow the realization of these benefits and stifle innovation, especially for small businesses that stand to benefit the most from the productivity boosts associated with AI. For example, California is already considering sweeping new AI rules based on the California Privacy Rights Act.

While there are roles for states to promote the adoption of AI within schools, businesses, and government entities, the federal government should take the lead in developing a comprehensive framework for regulating AI.

Why a Federal AI Regulatory Framework is Necessary: A risk-based federal framework is the best option to provide American businesses with the certainty they need to invest in AI development and adoption and ensure our workforce is prepared to transition to an AI-empowered economy.

Earlier this year, the U.S. Chamber’s Commission on AI Competitiveness, Inclusion, and Innovation released a report and recommendations for a federal AI regulatory framework that optimizes AI’s benefits and mitigates its potential risks. Read the report here.

A National AI Privacy Standard Is Essential

November 20, 2023

A recent House Energy & Commerce Committee hearing entitled “Safeguarding Data and Innovation: Setting the Foundation for the Use of Artificial Intelligence” spotlighted the importance of balancing data privacy with the data needs of AI systems.

The Chamber advocates for Congress to establish a preemptive national data law since it would prevent a disjointed state-by-state approach, offering the market stability needed for the emerging AI-driven digital economy to flourish.

Why it matters: A national privacy standard that protects privacy while enabling continued innovation is crucial for the U.S. to continue leading in AI and secure the digital economy's benefits. 

According to McKinsey & Co., AI is well positioned to be an economic growth powerhouse—potentially adding up to $4.4 trillion annually to the global economy. 

Balancing act: New privacy legislation should weigh how limits on data collection could affect the fairness and legality of the outputs produced by AI. That’s because good data is essential for effective AI, and overly strict privacy could impede the development of lawful and impartial AI.

Experts agree: Stanford University's Human-Centered Artificial Intelligence (HAI) aligns with the Chamber’s sentiment and points out the tension between keeping data private and collecting enough information to ensure AI is fair and unbiased.

Global AI Leadership on Display in the UK and U.S.

November 16, 2023

A core pillar of the Chamber’s Responsible AI Business Leadership Initiative is to advance U.S. leadership in creating a global AI framework with other like-minded nations.

The UK AI Safety Summit hosted earlier this month marked a significant moment for international discourse and potential collaboration on AI safety and ethics, especially among leading AI nations—notably the UK and U.S.—that have recognized the need for concerted action to shape the global regulatory landscape around this transformative technology.

Implications for U.S. Businesses: As AI policy and ethics continue to evolve, U.S. businesses must navigate a course that aligns with policies still being written while also maintaining a competitive edge.

The Future of Global AI Leadership: Global leaders must continue to coordinate to effectively manage AI's rapidly growing impact on society and the economy. Meetings like the UK's AI Safety Summit help to forge consensus and cooperation to ensure everyone benefits from this technology. 

Biden Executive Order Has Promising Priorities But Raises Concerns

November 2, 2023

The Biden administration issued an Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence on Monday, outlining priorities for seizing the potential of this transformative technology and managing its risks. Chamber staff attended the signing ceremony at the White House.

The Chamber appreciates the priorities outlined in the Executive Order, such as attracting highly skilled workers, bolstering resources for intra-government coordination, and speeding up the development of standards, but there are some concerns.

• Stakeholders might not have enough time to offer input, which could result in ill-informed regulations.
• Agencies like the FTC and CFPB should not see this as an opportunity to do as they please. All agencies must continue to act within Congressional limits and abide by Supreme Court rulings.

The Chamber is forging a sensible path forward on responsible AI.

• The Chamber’s Commission on AI Competitiveness, Inclusion, and Innovation and AI Working Group have been providing the federal government with a roadmap to a regulatory framework that optimizes AI’s benefits and mitigates its potential risks. Read the commission’s report released early this year.
• The Responsible AI Business Leadership Initiative is educating policymakers on the technology’s benefits and pushing for accountable policies.
• The Chamber has been hosting discussions – like the Global AI Forum – with industry and government leaders on the need to collaborate and establish trust in AI systems and policies.

Bottom line: It is encouraging to see several of the priorities outlined by the Chamber's AI Commission included in the EO. The Chamber looks forward to continued engagement with leaders in Washington and around the world to ensure there is a sensible path forward for responsible AI leadership at scale.

About the authors

Jordan Crenshaw

Crenshaw is Senior Vice President of the Chamber Technology Engagement Center (C_TEC).

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