{"id":1959306,"date":"2024-06-12T14:41:27","date_gmt":"2024-06-12T18:41:27","guid":{"rendered":"https:\/\/www.pymnts.com\/?p=1959306"},"modified":"2024-06-12T20:25:50","modified_gmt":"2024-06-13T00:25:50","slug":"ai-regulation-global-ai-landscape-in-flux-as-regulations-evolve","status":"publish","type":"post","link":"https:\/\/www.pymnts.com\/artificial-intelligence-2\/2024\/ai-regulation-global-ai-landscape-in-flux-as-regulations-evolve\/","title":{"rendered":"AI Regulation: Global Picture Balances Innovation and Insight"},"content":{"rendered":"<p>The global artificial intelligence (AI) landscape is undergoing significant shifts as regulators grapple with the technology\u2019s rapid advancements.<\/p>\n<p>While the U.S. and Europe are considering tightening AI regulations, Argentina President Javier Milei is positioning his country as a potential haven for tech investments. Meanwhile, the U.S. legal system is treading cautiously, with federal appeals courts hesitating to adopt AI-related rules.<\/p>\n<p>Various industry leaders are also urging the U.S. <a href=\"https:\/\/www.fda.gov\/\" target=\"_blank\" rel=\"noopener\">Food and Drug Administration<\/a> (FDA) to strike a balance in its approach to AI regulation in the pharmaceutical and medical device sectors.<\/p>\n<h2><strong>Regulatory Shifts May Drive AI Investment to Argentina<\/strong><\/h2>\n<p>After six months in office, President Milei is capitalizing on global regulatory shifts to position Argentina as the world\u2019s fourth AI hub. Milei\u2019s economic adviser, <a href=\"https:\/\/www.linkedin.com\/in\/demianreidel\/?original_referer=https%3A%2F%2Fwww%2Egoogle%2Ecom%2F&amp;originalSubdomain=ar\" target=\"_blank\" rel=\"noopener\">Demian Reidel<\/a>, has highlighted Argentina\u2019s potential as a strategic destination for tech investments, given the increasing regulatory pressures in the U.S. and Europe, according to a report by the <a class=\"editor-rtfLink\" href=\"https:\/\/www.ft.com\/content\/90090232-7a68-4ef5-9f53-27a6bc1260cc\" target=\"_blank\" rel=\"noopener\">Financial Times<\/a>.<\/p>\n<p>Reidel, who orchestrated Milei\u2019s recent meetings with tech giants like <a class=\"editor-rtfLink\" href=\"https:\/\/openai.com\/\" target=\"_blank\" rel=\"noopener\">OpenAI<\/a>, <a class=\"editor-rtfLink\" href=\"https:\/\/about.google\/\" target=\"_blank\" rel=\"noopener\">Google<\/a>, <a class=\"editor-rtfLink\" href=\"https:\/\/www.apple.com\/\" target=\"_blank\" rel=\"noopener\">Apple<\/a> and <a class=\"editor-rtfLink\" href=\"https:\/\/about.meta.com\/\" target=\"_blank\" rel=\"noopener\">Meta<\/a>, said restrictive regulations in other regions are making Argentina an attractive alternative.<\/p>\n<p>\u201cExtremely restrictive\u201d rules have \u201ckilled AI in Europe,\u201d Reidel said. He added that discussions in the U.S., particularly in California, indicated that American lawmakers might follow a similar path, further driving companies to seek more favorable environments.<\/p>\n<p><span data-preserver-spaces=\"true\">In May, Milei and Reidel held private meetings in California with key industry figures, including OpenAI\u2019s Sam Altman and Apple\u2019s <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.apple.com\/leadership\/tim-cook\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Tim Cook<\/span><\/a><span data-preserver-spaces=\"true\">. They also hosted a summit with AI investors and thinkers, such as venture capitalist <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/a16z.com\/author\/marc-andreessen\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Marc Andreessen<\/span><\/a><span data-preserver-spaces=\"true\"> and sociologist Larry Diamond. Additionally, Milei has met with Tesla CEO <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/x.com\/elonmusk?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Elon Musk<\/span><\/a><span data-preserver-spaces=\"true\"> twice.<\/span><\/p>\n<h2><strong>Court Case? Better Bring a Human<\/strong><\/h2>\n<p>In a move that could have set a digital precedent, the 5th U.S. Circuit Court of Appeals in New Orleans decided to keep its courtrooms strictly human for now. The court opted not to adopt what would have been the nation\u2019s first rule regulating the use of generative AI by lawyers, <a class=\"editor-rtfLink\" href=\"https:\/\/www.reuters.com\/legal\/transactional\/5th-circuit-scraps-plans-adopt-ai-rule-after-lawyers-object-2024-06-10\/\" target=\"_blank\" rel=\"noopener\">Reuters<\/a> reported Tuesday (June 11).<\/p>\n<p>The proposed rule, introduced last November, sought to mandate that attorneys who used AI-generated filings \u2014 courtesy of tools like OpenAI\u2019s ChatGPT \u2014 would certify that the documents had been thoroughly reviewed for accuracy. Missteps in compliance could have led to sanctions or the striking of the errant documents from court records.<\/p>\n<p>The court\u2019s decision came after an influx of public commentary, mostly from skeptical lawyers. The legal community voiced concerns over AI\u2019s reliability, citing incidents where AI \u201challucinations\u201d resulted in fictitious case citations.<\/p>\n<p>Had the 5th Circuit moved forward, it would have been the only court among the 13 federal appeals courts with such a rule. Other federal appeals courts are also toying with the idea of AI regulations, echoing the 5th Circuit\u2019s concerns.<\/p>\n<p>Across the pond, a <a class=\"editor-rtfLink\" href=\"https:\/\/www.artificiallawyer.com\/2024\/06\/10\/legal-profession-split-on-how-to-regulate-ai-use\/\" target=\"_blank\" rel=\"noopener\">recent survey<\/a> by Thomson Reuters showed that U.K. lawyers are divided on AI regulation: 44% of in-house lawyers want government oversight, while 50% prefer self-regulation. Law firms echo this split, with 36% favoring regulation and 48% opting for a laissez-faire approach, leaving regulators in a bind.<\/p>\n<h2><strong>Experts Urge FDA to Strike Balance in AI Regulation<\/strong><\/h2>\n<p>Industry leaders at the <a href=\"https:\/\/www.raps.org\/events\/raps-regulatory-intelligence-conference\" target=\"_blank\" rel=\"noopener\">RAPS Regulatory Intelligence Conference<\/a> emphasized the need for a balanced approach in the FDA\u2019s future AI regulations, advocating for flexibility and collaboration over rigid rules, Regulatory News <a class=\"editor-rtfLink\" href=\"https:\/\/www.raps.org\/news-and-articles\/news-articles\/2024\/6\/experts-advise-against-prescriptive-fda-policies-f\" target=\"_blank\" rel=\"noopener\">reported<\/a> Monday (June 10).<\/p>\n<p><span data-preserver-spaces=\"true\">Moderated by <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.linkedin.com\/in\/chriswhalley\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Chris Whalley<\/span><\/a><span data-preserver-spaces=\"true\">, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.pfizer.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Pfizer<\/span><\/a><span data-preserver-spaces=\"true\">\u2019s director of regulatory intelligence, the panel featured attorney <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.ebglaw.com\/people\/bradley-merrill-thompson\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bradley Thompson<\/span><\/a><span data-preserver-spaces=\"true\"> of law firm <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.ebglaw.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Epstein, Becker &amp; Green<\/span><\/a><span data-preserver-spaces=\"true\">; Vice President of Pharma <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.linkedin.com\/in\/samkaypharma\/?original_referer=https%3A%2F%2Fwww%2Egoogle%2Ecom%2F&amp;originalSubdomain=uk\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Sam Kay<\/span><\/a><span data-preserver-spaces=\"true\"> of AI-powered health data firm <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.basilsystems.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Basil Systems<\/span><\/a><span data-preserver-spaces=\"true\">; Director of Global Regulatory Strategy <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.linkedin.com\/in\/gopal-abbineni-b2702ab\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Gopal Abbineni<\/span><\/a><span data-preserver-spaces=\"true\"> of pharmaceutical firm <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.bayer.com\/en\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Bayer<\/span><\/a><span data-preserver-spaces=\"true\">; and Head of U.S. Global Regulatory and Scientific Policy at Merck Group <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.linkedin.com\/in\/elizabethrlange\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Elizabeth Rosenkrands Lange<\/span><\/a><span data-preserver-spaces=\"true\"> of science and tech firm <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.emdgroup.com\/en\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">EMD Serono\/Merck<\/span><\/a><span data-preserver-spaces=\"true\">. They collectively warned that overly prescriptive regulations could hinder innovation.<\/span><\/p>\n<p>The panel stressed the importance of clearly defining AI goals within the pharmaceutical and medical device industries. Bayer\u2019s use of AI was highlighted as an example of integrating AI into medical devices and regulatory intelligence. Merck\u2019s AI tools and pilot projects were also noted, with an emphasis on the need for vendor partnerships due to current technology limitations.<\/p>\n<p>The potential of AI to analyze vast amounts of data pointed to the untapped data that could streamline regulatory processes, Thompson noted.<\/p>\n<p>Opinions on AI\u2019s readiness varied among the panelists.<\/p>\n<p>Some expressed skepticism about AI\u2019s current capabilities and advised against large investments without clear objectives, noting that companies often fail within months due to poor planning. However, others were more optimistic, highlighting AI\u2019s ability to accelerate product development while cautioning that it is just the first step and requires further refinement.<\/p>\n<p>The panel concluded with a consensus that precise goals and strategic investments are crucial for leveraging AI\u2019s full potential in the pharmaceutical and medical device sectors while effectively navigating the regulatory landscape.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The global artificial intelligence (AI) landscape is undergoing significant shifts as regulators grapple with the technology\u2019s rapid advancements. While the U.S. and Europe are considering tightening AI regulations, Argentina President Javier Milei is positioning his country as a potential haven for tech investments. Meanwhile, the U.S. legal system is treading cautiously, with federal appeals courts [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1959446,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[65579],"tags":[9498,146365,7994,9680,5267,7414,57137,154978,8679,4480,9206,37751,133069,5950,67381],"class_list":["post-1959306","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence-2","tag-ai","tag-ai-regulations","tag-argentina","tag-artificial-intelligence","tag-eu","tag-fda","tag-food-and-drug-administration","tag-javier-milei","tag-legal","tag-legislation","tag-news","tag-openai","tag-pymnts-news","tag-regulations","tag-techreg"],"acf":{"suggested_titles":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.7 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>AI Regulation: Global Picture Balances Innovation and Insight<\/title>\n<meta name=\"description\" content=\"The AI landscape is shifting as regulators in the U.S. and Europe tighten the reins, while Argentina\u2019s president offered a tech haven.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pymnts.com\/artificial-intelligence-2\/2024\/ai-regulation-global-ai-landscape-in-flux-as-regulations-evolve\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"AI Regulation: Global Picture Balances Innovation and Insight | PYMNTS.com\" \/>\n<meta property=\"og:description\" content=\"The global artificial intelligence (AI) landscape is undergoing significant shifts as regulators grapple with the technology\u2019s rapid advancements. 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