The Corner

Regulatory Policy

Occupational Licensing for AI?

OpenAI CEO Sam Altman testifies before a Senate Judiciary Privacy, Technology & the Law Subcommittee hearing titled 'Oversight of A.I.: Rules for Artificial Intelligence' on Capitol Hill in Washington, D.C.
OpenAI CEO Sam Altman testifies before a Senate Judiciary Privacy, Technology & the Law Subcommittee hearing titled ‘Oversight of A.I.: Rules for Artificial Intelligence’ on Capitol Hill in Washington, D.C., May 16, 2023. (Elizabeth Frantz/Reuters)

Reuters reports:

OpenAI, the startup behind ChatGPT, wants the U.S. to consider mandating licenses for companies to develop powerful artificial intelligence like the kind underpinning its chatbot, its chief executive plans to tell Congress on Tuesday.

In his first appearance before a congressional panel, CEO Sam Altman is set to advocate licensing or registration requirements for AI with certain capabilities, his written testimony shows. That way, the U.S. can hold companies to safety standards, for instance testing systems before their release and publishing the results.

It’s quite interesting that OpenAI’s Sam Altman is calling for regulating AI now, after he developed ChatGPT under no constraints. I assume he would like his product to remain at the top, and occupational licensing is a great way to block competition. This follows a well-known trend of successful practitioners in an industry demanding the expansion of the requirements imposed on those desiring to enter it.

If Altman wants to self-regulate, he should go ahead. But counting on politicians, who don’t understand the basics of AI, to regulate the industry wisely and productively is worrisome. And it’s silly to consider pausing AI development at a time when the U.S. is leading the industry. If it is paused, and another country comes up with competing technologies, be ready for calls for industrial policy and subsidies. This is why I agree with Neil Chilson of the Center for Growth and Opportunity when he notes that politicians are the ones who should take a six-month pause to understand AI before thinking about all the ways to regulate the industry.

Of course, Altman has already volunteered to help legislators design the rules. Apparently, he is now the darling of some of the 60 or so legislators with whom he attended a dinner last night. Here’s what CNBC says about it:

Altman received high praise from several members.

“I thought it was fantastic,” said Rep. Ted Lieu, D-Calif., vice chair of the House Democratic Caucus who co-hosted the dinner with GOP Conference Vice Chair Mike Johnson, R-La. “It’s not easy to keep members of Congress rapt for close to two hours. So Sam Altman was very informative and provided a lot of information.”

“He gave fascinating demonstrations in real time,” Johnson said. “I think it amazed a lot of members. And it was a standing-room-only crowd in there.”

One of the demonstrations, Johnson said, was having ChatGPT, OpenAI’s generative AI chatbot, write a bill dedicating a post office to Lieu. After, he had it write a speech for Johnson to deliver in introducing the bill on the House floor.

A young tech CEO wooing politicians: What could go wrong?

Finally, the big idea coming out of today’s Senate hearing on AI is that the U.S. should create a national regulator. That’s right, more agencies and regulators is just what we need. Haven’t we learned anything? To consider one-size-fits-all regulation for something that affects so many different industries is yet another example of how politicians don’t understand AI and don’t realize that those established in the tech industry are trying to keep the competition out. Also, thinking of the FDA and NEPA, for instance, haven’t we learned anything about the negative consequences of permitting procedures that slow down construction and jack up prices?

This has to be so tiresome to those who have worked on tech issues for decades. I am thinking of you, Adam Thierer. Innovation leads to panic. Panic leads to solutions predicated on the precautionary principle. That usually means new bureaucracy and big regulations. And all of this has the same predictable outcome of giving an advantage to the incumbent, killing competition and innovation.

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University.
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