thriving ecosystem of exponential technologies requires a regulatory approach that is flexible and responsive to emerging risks, without stifling progress. A "wild west" approach with minimal regulation is inadequate, as businesses need certainty and predictability, while consumer trust is paramount. As nations across the globe race to lead on exponential technologies, governments cannot ask industries to slow down so regulators can catch up. For growth to be equitable and sustained in the Intelligent Age, all partners and stakeholders in the AI race must be at pace.
How can government AND business leaders, as equal stakeholders in the global race for exponential tech leadership, strike a balance between short–term goals of rapid growth in innovation capabilities and long–term imperatives of global leadership in standard setting and the transformation of their industries in the Intelligent Age?
One promising solution lies in leveraging public–private partnerships, particularly the symbiosis between self–regulatory organizations (SROs) and independent risk, governance, and audit entities. These quasi–government partnerships can bridge the gap between rapid innovation and government oversight. They possess the cutting edge technical expertise and industry knowledge too often lacking in government regulators, while maintaining crucial independence from the companies they oversee.
The concept of "shared responsibility" between the public and private sectors is crucial for balancing speed and strength in innovation.
Overly strict, top–down regulation risks regulatory capture, where established players can use complex rules to maintain their market dominance. This not only stifles competition but also slows the pace of innovation, ultimately harming consumers and the economy at large.
SROs have a proven track record in highly regulated sectors, establishing standards and norms around transparency, fairness, privacy, and accuracy. An AI–focused SRO could create guidelines addressing critical issues around accountability, responsibility, competition, data, and ecosystem resources. This collaborative approach can lead to more effective and widely-adopted standards than top-down quickly–outdated government mandates alone.
Independent risk, governance, and audit entities offer another vital layer of oversight. These experts can identify potential vulnerabilities and concerns before they become real world problems.
A thoughtful system of third–party oversight can complement rather than replace government regulation. By working in tandem with existing sectoral regulatory bodies, these entities can provide the agility and technical know-how needed to keep pace with rapidly evolving technologies.
To win the global race for exponential tech leadership, it's clear that our approach to regulation must evolve. By balancing shared responsibility, encouraging competitive innovation, and leveraging independent expertise, we can create a framework that promotes progress while safeguarding our future.
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Public–private partnerships to drive growth in the Intelligent Age
January 19, 2025
To win the global race for exponential tech leadership, it's clear that our approach to regulation must evolve, writes Stacey Rolland.
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thriving ecosystem of exponential technologies requires a regulatory approach that is flexible and responsive to emerging risks, without stifling progress. A "wild west" approach with minimal regulation is inadequate, as businesses need certainty and predictability, while consumer trust is paramount. As nations across the globe race to lead on exponential technologies, governments cannot ask industries to slow down so regulators can catch up. For growth to be equitable and sustained in the Intelligent Age, all partners and stakeholders in the AI race must be at pace.
How can government AND business leaders, as equal stakeholders in the global race for exponential tech leadership, strike a balance between short–term goals of rapid growth in innovation capabilities and long–term imperatives of global leadership in standard setting and the transformation of their industries in the Intelligent Age?
One promising solution lies in leveraging public–private partnerships, particularly the symbiosis between self–regulatory organizations (SROs) and independent risk, governance, and audit entities. These quasi–government partnerships can bridge the gap between rapid innovation and government oversight. They possess the cutting edge technical expertise and industry knowledge too often lacking in government regulators, while maintaining crucial independence from the companies they oversee.
The concept of "shared responsibility" between the public and private sectors is crucial for balancing speed and strength in innovation.
Overly strict, top–down regulation risks regulatory capture, where established players can use complex rules to maintain their market dominance. This not only stifles competition but also slows the pace of innovation, ultimately harming consumers and the economy at large.
SROs have a proven track record in highly regulated sectors, establishing standards and norms around transparency, fairness, privacy, and accuracy. An AI–focused SRO could create guidelines addressing critical issues around accountability, responsibility, competition, data, and ecosystem resources. This collaborative approach can lead to more effective and widely-adopted standards than top-down quickly–outdated government mandates alone.
Independent risk, governance, and audit entities offer another vital layer of oversight. These experts can identify potential vulnerabilities and concerns before they become real world problems.
A thoughtful system of third–party oversight can complement rather than replace government regulation. By working in tandem with existing sectoral regulatory bodies, these entities can provide the agility and technical know-how needed to keep pace with rapidly evolving technologies.
To win the global race for exponential tech leadership, it's clear that our approach to regulation must evolve. By balancing shared responsibility, encouraging competitive innovation, and leveraging independent expertise, we can create a framework that promotes progress while safeguarding our future.
