The controversies surrounding OpenAI's ChatGPT have drawn significant attention to the governance of AI, particularly generative AI. However, amidst this focus, there's a critical oversight concerning algorithms deeply woven into government services, determining access to necessities like food, housing, and healthcare, exemplified by the UK's Universal Credit system and similar instances in the United States and across Europe. This article emphasizes the need for targeted regulations, drawing from real-world examples where algorithms have caused harm and urges policymakers to prioritize concrete actions over speculative concerns about generative AI.
Source: Lawfare
Anthropic, the developer of ChatGPT competitor Claude, has released a research paper on AI "sleeper agents"—large language models (LLMs) that appear normal but can output vulnerable code when given specific instructions. The study reveals that, despite safety training efforts, deceptive behaviors still persist in LLMs. The findings suggest potential security risks in open-source LLMs, with the possibility of hidden vulnerabilities being activated after deployment, raising concerns about the effectiveness of standard safety training for AI systems.
Source: Ars Technica
As Generative AI becomes a focal point for business optimization, organizations must grapple with various risks, including intellectual property concerns, lack of harmonized regulations, and challenges in building trust. Chief Legal Officers (CLOs) play a crucial role in advising boards on risk mitigation strategies. The World Economic Forum's Chief Legal Officers community emphasizes the importance of enterprise-level governance frameworks, highlighting issues such as unauthorized use of copyrighted material, regulatory uncertainties, and the need for responsible AI compliance programs. The AI Governance Alliance, a global initiative, aims to promote responsible AI development through a combination of government regulations and self-regulation strategies.
Source: World Economic Forum
The International Monetary Fund (IMF) emphasizes the transformative potential of artificial intelligence (AI) on the global economy, projecting that almost 40% of jobs worldwide will be influenced by AI. While recognizing the risks of job displacement and increased inequality, the IMF calls for a careful balance of policies to harness the vast potential of AI for the benefit of humanity. Advanced economies face greater risks but also more opportunities, with around 60% of jobs potentially impacted, while emerging markets and low-income countries may experience fewer immediate disruptions but face challenges in harnessing AI benefits. The IMF urges comprehensive social safety nets and retraining programs to make the AI transition inclusive and curb inequality.
Source: The IMF
The Financial Industry Regulatory Authority (Finra) has identified artificial intelligence (AI) as an "emerging risk" in its annual regulatory report for Wall Street. Finra urges member firms to carefully consider the regulatory implications of deploying AI, particularly in areas like anti-money laundering, public communication, and cybersecurity. While AI offers efficiencies, concerns over accuracy, privacy, and bias persist, and Finra emphasizes the need for thorough evaluation before deployment. The report also underscores the growing cybersecurity threat in the financial industry, citing phishing campaigns, insider threats, and ransomware attacks as significant concerns.
Source: Wall Street Journal
Rep. Ted Lieu, along with bipartisan support, has introduced the Federal Artificial Intelligence Risk Management Act, requiring federal agencies to adhere to the National Institute of Standards and Technology's AI risk management framework when acquiring AI solutions. The bill, mirroring a Senate version, aims to ensure responsible AI use and individual protection as technology advances. The proposed legislation assigns the Office of Management and Budget the task of guiding agencies in implementing the NIST framework and initiating a workforce initiative for accessing AI expertise, while NIST is called upon to develop methods for testing and evaluating AI acquisitions.
Source: NextGov
In a Senate hearing on AI's impact on journalism, lawmakers, including both Democrats and Republicans, expressed support for requiring tech companies like OpenAI to pay media outlets for licensing news articles and other data used in training AI algorithms. Media industry leaders argued that AI companies using their content without compensation are jeopardizing the quality of their work, with calls for legislative clarity on copyright infringement and mandatory licensing. However, outside the committee room, there is debate on the feasibility and potential drawbacks of such mandatory licensing, raising questions about how lawmakers will address these concerns.
Source: WIRED
Deloitte has released the first edition of a quarterly survey titled "The State of Generative AI in the Enterprise: Now Decides Next," exploring the impact of generative AI on businesses. The survey, involving 2,800 respondents from director to C-suite level across six industries and sixteen countries, reveals that while 79% of respondents expect generative AI to transform their organizations within three years, they are more focused on gaining practical benefits today. Business and tech leaders express concerns about the potential centralization of global economic power and increased economic inequality due to the widespread use of generative AI. Technical talent is identified as the primary barrier to AI adoption, followed by regulatory compliance and governance issues.
Source: VentureBeat
A group of Danish and American social scientists have developed an AI model capable of predicting an individual's likelihood of dying within the next four years with remarkable accuracy. The project, outlined in "Using Sequences of Life-Events to Predict Human Lives," utilized large datasets about everyday life, tokenized into numeric sequences, raising questions about the predictability and monotony of human existence. Conducted in compliance with the European Union’s strict digital privacy laws, the success of this AI initiative in Denmark highlights the potential for countries with rich data sets to efficiently manage budgets and social services. The article also emphasizes the need for trust in government to gather and handle such data effectively, pointing out potential disadvantages for countries lacking this trust.
Source: The Washington Post
OpenAI, the creator of ChatGPT, is reportedly in talks with media giants Thomson Reuters, CNN, Fox Corp., and Time for content licensing agreements. The discussions involve licensing articles to train ChatGPT and potentially feature the media companies' content in OpenAI's products. These negotiations come at a time when OpenAI and its financial supporter Microsoft are facing multiple lawsuits, including one from The New York Times, accusing them of using copyrighted material to train artificial intelligence products.
Source: Reuters