Opinion: Merav Ozair, PhD
Technology is moving forward today at more speeds than ever before. We outperformed Moore’s laws – our calculation power doubles every six months rather than every two years – the regulations are catch-up and we’re catch-up.
The EU Artificial Intelligence Act was only put into effect in August 2024 and is already behind schedule. Without considering AI agents, they are still struggling with the Generated AI (Genai) and Foundation models. Article 28B was added to ACT in June 2023 after CHATGPT was released at the end of 2022, and chatbots became popular. When lawmakers first drafted the law in April 2021, it wasn’t on their radar.
As we move to robotics and the use of virtual reality devices, a “new paradigm of AI architecture” is developed, addressing the limitations of Genai for creating robots and virtual devices that can infer the world, unlike the Genai model. Maybe spending time drafting new articles on genai was not a common use.
Furthermore, technology regulations are highly divisible. There are AI regulations, like the EU AI law. Web3, just like the cryptocurrency market. The security of digital information, such as the EU Cybersecurity Act and the Digital Operations Resilience Act.
This dichotomy is a hassle for users and businesses to follow. Furthermore, the solution and the way the product is developed is not consistent. All solutions integrate many technologies, with each technology component having separate regulations.
It may be time to rethink how we regulate technology.
A comprehensive approach
Tech companies have pushed boundaries with cutting edge technologies such as Web3, AI and Quantum Computing. Other industries continue to litigate in the experiment and implementation of these technologies.
Everything is digital, and every product integrates several technologies. Think of an Apple Vision Pro or a Meta Quest. It includes hardware, goggles, AI, biometric technology, cloud computing, encryption, digital wallets, and more, and will soon be integrated with Web3 technology.
A comprehensive approach to regulation is the most suitable approach for the following main reasons:
Full System Solution
Most, if not all, solutions require the integration of several emerging technologies. If each technology has separate guidelines and regulations, how can you guarantee that the product/service is compliant? Where does one rule start and where does the other rule start?
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Individual guidelines likely introduce more complexity, errors, and misunderstandings, and ultimately can cause more harm than good. If the implementation of a technology is comprehensive and inclusive, then there should be an approach to regulating it.
Various technologies support each other’s weaknesses
All technologies have their advantages and disadvantages, and in many cases the advantages of one technology can support the disadvantages of another.
For example, AI can support Web3 by increasing the accuracy and efficiency of smart contract execution and blockchain security and monitoring. In contrast, blockchain can help reveal “responsible AI.” Because blockchain is everything that AI isn’t.
When AI supports Web3 and vice versa, implements a comprehensive, safe, secure and reliable solution. Are these solutions AI-compliant or Web3-compliant? Using this solution, compliance can be difficult to dichotomise. The solution must be compliant and comply with all guidelines/policies. It would be best if these guidelines/policies include all technologies including integration.
A proactive approach
Proactive regulations are needed. Many of the regulatory proposals across all regions are reactions to changes we know today, and do not seem to be fully progressing on how to provide a framework that could come in five or ten years.
For example, if you already know that there is a “new paradigm of AI architecture,” then perhaps in the next five years, you start thinking about it today, not five years, and know how to regulate it? Or, even better, find a regulatory framework that applies no matter how the technology evolves.
Think about responsible innovation. Responsible innovation simply means working for society without causing more problems than solving new technologies. In other words, “Do good and don’t harm.”
Responsible innovation
Responsible innovation principles are designed to span all technologies, not just AI. These principles recognize that all technologies can have unintended consequences for users, bystanders and society, and are the responsibility of companies and developers to create technologies to identify and mitigate those risks.
The principles of responsible innovation are comprehensive and international, and apply to any technology that exists today and evolves in the future. This could be the basis for technical regulations. Still, businesses need to understand that they instill trust in their users with innovative responsibility, regardless of regulations. This will lead to mainstream adoption.
The truth about technology law
The Securities Act of 1933, also known as the “Truth About Securities” Act, was created to protect investors from fraud and misrepresentation in response to the stock market crash of 1929, and to restore public confidence in the stock market.
At the heart of this act is integrity and transparency. This is an important factor in instilling public trust in the stock market and its aspects.
This law has endured the test of time, the “Evergreen” law. The securities trading and financial industries have become more digital and technical, but the core principles of this law remain and will remain in place.
You can design the “technology truth” based on the principles of responsible innovation. This can instill public trust internationally in technology now and in the future. Essentially, we want these products and services to be safe, secure, ethical, privacy-controlled, accurate, easy to understand, auditable, transparent and accountable. These values ​​are international across regions, industries and technology, and there is no boundary between technology, so no regulations are required either.
Innovation may create value, but it can also extract or destroy it. Regulations help limit the latter two types of innovation, but well-designed regulations allow the first type to survive and thrive. Global collaboration may find ways to encourage innovation that creates value for the benefit of the global economy and society.
It may be the true time of technology law, an international, comprehensive, evergreen regulation for citizens of the world.
Opinion: Merav Ozair, PhD.
This article is for general informational purposes and is not intended to be considered legal or investment advice, and should not be done. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or express Cointregraph’s views and opinions.
