Artificial Intelligence (AI) is defined as a set of technologies that enable computers to perform a variety of advanced functions, including the ability to see, understand and translate spoken and written language, analyze data, make recommendations, and more. Simply put, AI is a computer which simulates human intelligence to solve problems.
Over the last several months, AI has been heavily publicized, with the advent of ChatGPT, a software which is capable of providing its users with concise solutions to complex and technical problems in a matter of moments. In fact, ChatGPT has been so revolutionary that it prompted Microsoft to make a multi-billion-dollar investment into its parent company, and Elon Musk affiliate, OpenAI.
While AI and the technology surrounding it has received much press and fanfare and has been the subject of lots of excitement, one critical issue has seemingly been overlooked by most: How will AI be regulated, and what should companies employing AI technologies expect when it comes to complying with state and federal laws? AI has many use cases, including in the healthcare sector, in the homes of private citizens, self-driving cars, in the screening and hiring of employees, or as a general data management tool for businesses everywhere. Given these use cases, in which AI will be responsible for managing and storing massive amounts of sensitive data, including the health and/or financial information of hundreds of millions if not billions of people, states are beginning to act on the regulatory front. An increasing number of legislators have introduced guidelines and rules regarding the use of AI algorithms.
Since 2021, seventeen states have introduced bills which would regulate the use of AI. Alabama, Colorado, Illinois, California, and Vermont have passed bills creating a commission, task force or oversight position to evaluate potential use cases of AI. Baltimore and New York City have passed local laws which prohibit the use of discriminatory algorithmic decision making.
At the Federal level, at Congress’ direction, the US National Institute of Standards and Technology (NIST) is actively working to develop federal standards for the use and regulation of AI in both the private and public sector. The Federal Trade Commission (FTC) has issued guidance on the use of AI in areas such as advertising and marketing, consumer protection, and data privacy. The FTC has also taken enforcement actions against companies that have engaged in deceptive practices related to AI.The Food and Drug Administration (FDA) has issued guidance on the use of AI in the medical field, including the regulation of medical devices that use AI. The National Highway Traffic Safety Administration (NHTSA) has issued guidance on the use of AI in self-driving cars. Additionally the Americans with Disabilities Act (ADA) and the Civil Rights Act of 1964, apply to the use of AI in certain contexts to ensure non-discrimination.
Thus, while still in its infancy, lawmakers are already considering the potential implications AI will have as its use cases continue to broaden. Businesses, both public and private, should stay aware of the existing and forthcoming regulations which will continue to roll out in the coming years as AI continues to develop.
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