Big Tech Watchdogs Are In For Regulatory Empowerment And Big Tech's Help For Regulating AI

Last week, the EU Commission announced it will be introducing new rules to empower regulators going after Big Tech by revamping cross-border procedures for privacy probes. Since the General Data Protection Regulation came into force back in 2018, investigations have been criticized for taking too long and fines for being too low to deter privacy breaches the tech titans have made. This new set of rules aims to harmonize regulatory procedures so completion of investigations can be performed in a timely manner and resolutions can be delivered quickly. But when it comes to AI governance, Big Tech and regulators actually seem to be on the same side for a change. Microsoft MSFT-backed OpenAI CEO Sam Altman surprised the Congress by warning about threats that come with AI. Although Altman changed his tune a bit a week later in London, Alphabet Inc GOOGL-owned Google, Microsoft Inc MSFT and International Business Machines Corporation have asked lawmakers to oversee AI in order to ensure safety and competitiveness with China.

DPC Critics

The Irish Data Protection Commissioner (DPC) is considered as the lead EU regulator as Ireland is home to many of the world’s largest tech companies’ headquarters. The fines DPC assigned have often been criticized for being too low.

The New Set Of Rules

With the new rules in place, main privacy authority will be sharing a summary of key issues with its peers. This way, others will be able to provide timely feedback which will allow for a resolution to be made at an early stage. Common deadlines for cross-border cooperation will be set clearly as well as for the resolution of disputes. By improving these procedures, companies who are being investigated will gain the right to be heard during key stages of the process as well as to access the file. However, Max Schrems, a privacy activists who is behind the complaints against Meta Platforms META and Google criticized the new procedure for being technically and materially flawed and for not ensuring the enforcement of riles. The Computer & Communications Industry Association, a tech lobbying group, finds that the rules don’t give the companies the right for an appeal as well as a fair hearing.

When It Comes To AI Regulation, Big Tech Is Actually Working Together With Law Makers

As the E.U works on the upcoming AI Act which could set a benchmark for other countries to follow, Big Tech has already given its valuable insight and concise suggestions on the best approach towards AI regulation.  At the end of June, Microsoft Corporation MSFT President Brad Smith offered the help the U.S. tech titan in Brussels. Together with Twitter-owner and Tesla TSLA CEO Elon Musk, Smith has been courting regulatory watchdogs by offering the company’s software expertise as knowledgeable input to AI regulators. Along with suggesting the approach towards AI regulation, Smith has called the EU, the United States, G7 countries, India and Indonesia to collaborate and together seek the best way to govern AI. Smith also emphasized that Microsoft's five-point blueprint AI governance that was revealed in May is aligned with EU’s proposed legislation. Microsoft is addressing current and emerging AI issues with government-led AI safety frameworks, safety brakes for AI systems that control critical infrastructure as well as by ensuring academic access to AI.

Regulatory Friend Or Foe

As Marietje Schaake noted, regulation on its own is merely a meaningless word. Some are made for intervention purposes, others to facilitate, and some actually benefit corporations while others threaten them. When it comes to Big Tech and AI, it all comes down to protecting people’s rights so depending on the company’s goal, regulations can go either way and there’s a long way of learning ahead for regulators on their mission to protect the citizens of the word, or more precisely, Big Tech’s users. Now just because Big Tech seems willing to do AI differently, whether Big Tech truly learned from its mistakes is a whole other story as it’s a question of whether they truly want regulatory support or are just using AI to get regulatory minds of their current non-AI issues.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.