By Amy Matsuo, KPMG Regulatory Insights Leader
After months of anticipation, the widely discussed Artificial intelligence (AI) Action plan was announced recently by the Administration marking a new chapter in the evolving story of AI regulation in the United States. While there is much to discuss, here are a few of the main takeaways of note from the plan as businesses begin to digest what it means for them and their operations.
Shifting Tides to Self Regulation
Bob Dylan famously sang that you didn’t have to be a weatherman to know which way the wind blows. Of note with the AI Action plan, the winds are shifting away from a federal rules-based approach towards greater ‘self-regulation’. By advocating for minimal federal interference with state-level AI laws—unless they are deemed as “unduly restrictive to innovation”—the plan seeks to promote a regulatory environment that encourages private sector creativity and responsiveness. In a similar vein, the plan talks about “opening the sandboxes” for rapid AI deployment and testing and promoting a culture within industries and sectors of the economy to accelerate development AI standards and measure the impact of AI on productivity.
A New Digital Infrastructure
Infrastructure is often associated with bridges and roadways but in the emerging digital era, the plan stakes out the importance of a new kind of infrastructure, one that signifies a commitment to creating the physical and technical foundations necessary for sustainable AI growth. Reforms in the permitting process for data centers, stabilizing power grids, and encouraging U.S. semiconductor manufacturing are some of the key elements of the infrastructure-led strategy. High-security data centers and industry-driven training programs further emphasize the importance of preparing both technologically and human resource-wise for an AI-driven future. In the coming weeks and months it’ll be worth monitoring closely if the infrastructure goals are able to keep up with the pace of the technology itself.
Global Engagement and Security
Last but certainly not of least importance is the plans focus on diplomacy and security, highlighting the strategic role AI is expected to play in U.S. international relations and defense. By facilitating the global export of AI technology stacks, the plan seeks to reinforce America’s position as a leader in international AI policy, while strengthening partnerships with allied nations through coordinated export controls and shared security measures. Moreover, the execution of AI-related Executive Orders to procure unbiased large language models for federal use underscores the importance of ethical considerations in AI deployment.
The Path Ahead
In the last few years AI has come to dominate the conversation in board rooms and on main street in ways rarely seen. While questions still abound regarding what the long term impact of the technology will be across sectors, what is clear is we find ourselves in the opening act of the regulatory agenda for AI, one that will have profound implications for how the technology is developed and utilized going forward.
The views expressed are the authors alone and do not necessarily represent those of KPMG LLP.