The economics of regulating AI
- Mar 23
- 1 min read
WALL STREET JOURNAL — The most consequential technology of our lifetimes is being regulated by people who can’t agree on what it is. Several states and the European Union have enacted sweeping rules governing artificial intelligence.
Illinois prohibits using AI in hiring decisions with discriminatory outcomes—a reasonable goal—but defines AI so broadly that nearly any recommendation system, including statistical methods that go back centuries, may be implicated.
New York’s RAISE Act requires developers of “frontier” AI systems to report safety incidents within 72 hours. The EU AI Act imposes penalties of up to 7% of global revenue for violations. The regulatory architecture is vast, fragmented and largely incoherent. But the greatest harm may not be what these systems fail to prevent. It may be what they cause.
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