Dilemma of the Artificial Intelligence Regulatory Landscape
This highlights a critical problem for AI startups and industries facing high compliance costs due to fragmented regulations, though it is incremental as it builds on existing discussions about AI governance.
The authors describe the regulatory challenges faced by an autonomous driving startup, which spent 42% of its budget on compliance compared to the software industry norm of 13%, and advocate for an FDA-like agency to standardize AI regulation.
As a startup company in the autonomous driving space, we have undergone four years of painful experiences dealing with a broad spectrum of regulatory requirements. Compared to the software industry norm, which spends 13% of their overall budget on compliances, we were forced to spend 42% of our budget on compliances. Our situation is not alone and, in a way, reflects the dilemma of the artificial intelligence (AI) regulatory landscape. The root cause is the lack of AI expertise in the legislative and executive branches, leading to a lack of standardization for the industry to follow. In this article, we share our first-hand experiences and advocate for the establishment of an FDA-like agency to regulate AI properly.