Emerging Technology Regulation: A Comprehensive and Enduring Approach

Source: Cointelegraph Original text: "Regulating Emerging Technologies: A Comprehensive and Enduring Approach"

The viewpoint comes from: Dr. Merav Ozair

Today, technological development is advancing at the speed of light. We have surpassed Moore's Law—where computing power doubles every six months instead of every two years—yet the relevant regulations have been playing catch-up.

The EU Artificial Intelligence Act will come into effect in August 2024, but it already appears to be lagging behind. It does not take AI agents into account and is still struggling with generative AI (GenAI) and foundational models. Article 28b was added in June 2023 due to the launch of ChatGPT at the end of 2022 and the booming deployment of chatbots. This content was not considered when legislators first drafted the bill in April 2021.

As we gradually enter the application of robotics technology and virtual reality devices, a "new AI architectural paradigm" will develop, addressing the limitations of generative AI and creating robots and virtual devices capable of reasoning about the world, which generative AI models cannot achieve. Perhaps it is not worth spending time drafting new terms for generative AI.

In addition, the existing technological regulation is quite fragmented. For example, regulations on AI, such as the EU AI Act; regulations on Web3, like the Crypto Assets Markets Act; and regulations on digital information security, such as the EU Cybersecurity Act and the Digital Operational Resilience Act.

This fragmentation makes it difficult for users and businesses to keep up. Moreover, it does not align with the way solutions and products are developed. Each solution integrates multiple technologies, and each technological component has its own regulatory requirements.

Perhaps it is time to reconsider our approach to regulatory technology.

Comprehensive regulatory approach

Technology companies have been pushing the boundaries of cutting-edge technologies, including Web3, AI, quantum computing, and other yet-to-emerge technologies. Other industries are also following suit, experimenting with and implementing these technologies.

Everything is digital, and each product integrates multiple technologies. Take Apple Vision Pro or Meta Quest as examples. They encompass hardware, eyewear, AI, biometric technology, cloud computing, encryption technology, digital wallets, and more, and will soon integrate with Web3 technology.

A comprehensive regulatory approach will be the most suitable for several key reasons:

Systematic solution

Most solutions require the integration of various emerging technologies. If we have separate guidelines and regulatory provisions for each technology, how can we ensure that products/services comply with regulatory requirements? Where does one rule begin and another end?

Isolated guidelines may lead to more complexity, errors, and misunderstandings, ultimately being counterproductive. If the implementation of technology is comprehensive and inclusive, then its regulation should also be comprehensive.

Different technologies complement each other's deficiencies.

All technologies have their advantages and disadvantages. Typically, the advantages of one technology can compensate for the disadvantages of another.

For example, AI can support Web3 by improving the accuracy and efficiency of smart contract execution and blockchain security monitoring. Conversely, blockchain technology can help achieve "responsible AI" because blockchain possesses qualities that AI lacks—transparency, traceability, trustworthiness, and tamper resistance.

When AI supports Web3, and vice versa, we achieve a comprehensive, secure, reliable, and trustworthy solution. Are these solutions AI-compliant or Web3-compliant? Under this solution, the compliance distinction will become difficult. The solution should be compliant and adhere to all guidelines/policies. These guidelines/policies should cover all technologies and their integration.

Active regulatory approach

We need proactive regulation. Many regulatory proposals from various regions seem to be reactions to changes we know today, without deeply considering how to provide a framework for technological developments five or ten years into the future.

For example, if we already know that a "new AI architecture paradigm" may emerge in the next five years, why not start thinking today about how to regulate it, rather than five years from now? Or better yet, find a regulatory framework that applies to technological development.

Think about responsible innovation. In short, responsible innovation means making new technologies serve society while not creating more problems than those being solved. In other words: "Do good, do no harm."

Responsible Innovation

The principles of responsible innovation should apply to all technologies, not just AI. These principles recognize that all technologies can have unintended consequences for users, bystanders, and society, and that the companies and developers creating these technologies have a responsibility to identify and mitigate these risks.

The principles of responsible innovation are comprehensive and international, applicable to any technology that exists today and also to technologies that will be developed in the future. This can serve as the foundation for technology regulation. However, regardless of whether there is regulation, companies should understand that responsible innovation can build trust with users, which will translate into mainstream adoption.

Technical Truth Act

The Securities Act of 1933, also known as the "Truth in Securities Act," aimed to protect investors from fraud and misrepresentation, restoring public confidence in the stock market, in response to the stock market crash of 1929.

The core of the bill is honesty and transparency, which are fundamental elements in building public trust, whether in the stock market or in anything else.

This legislation has stood the test of time — a "evergreen" law. The securities and financial industries have become increasingly digital and technological, but the core principles of this act remain applicable and will continue to be.

Based on the principles of responsible innovation, we can design a "Technology Truth Act" that will establish public trust in technology, applicable internationally now and in the future. Fundamentally, we want these products and services to be safe, reliable, ethical, privacy-protecting, accurate, easy to understand, auditable, transparent, and accountable. These values are universal across regions, industries, and technological fields, and since technology knows no borders, regulation should not have borders either.

Innovation can create value, but it can also consume or destroy it. Regulation helps to limit the latter two types of innovation, while good regulatory design may allow the former type of innovation to survive and thrive. Global cooperation may find ways to encourage innovation, thereby creating value for the benefit of the global economy and society.

Perhaps it is time to propose a "Technology Truth Act" - a comprehensive, international, and enduring regulation to benefit global citizens.

Viewpoint from: Dr. Merav Ozair

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This article is for general informational purposes only and should not be considered as legal or investment advice. The views, thoughts, and opinions expressed in the text are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.