Big Changes are Approaching on the AI Frontier. Here’s what to Expect from the US Government.

Each day it seems like we’re living more and more in the future. AI has not only become a standard part of the tech landscape, but it’s spreading fast across multiple verticals. According to PWC, more than 73% of US companies have already adopted AI and more than half of the companies surveyed have already implemented generative AI (GenAI). But while the US government isn’t moving as fast as technology innovation, we’re still holding our breath so see what new policies and legislation will come out of Washington. And changes definitely are coming.

In late 2023, the Biden administration issued an executive order on Artificial Intelligence. Based on this, we’re expecting there to be new standards for AI as well as funding, training and enforcement to mitigate risks. The government is setting the stage for a rapid and widespread adoption of AI as we venture into unknown territory.

To better understand what these government changes might mean for startups, we spoke to Paul Stimers. Here’s what he thinks about the near future:

I think there will be a lot of activity. Will the US Congress pass legislation within a year? I don’t know. But it will almost certainly introduce legislation and take it up in a serious and meaningful way. And the opportunity to engage on that legislation will be there for those who want to do so. This is an interesting place to be because the companies that are most active in this space are themselves startups.

We’re already seeing individual agencies taking different approaches to regulation. So The White House is trying to unify those and through the executive order is trying to provide a certain amount of direction. Also, the United States is involved in ongoing dialogues with the EU in particular and with a number of other stakeholders internationally to develop an international approach or at least to try to harmonize approaches.

We can expect that Congress will eventually speak on the matter probably within the next few months. In the Senate, there have been classified briefings about AI. We’ve seen that Senator Schumer and three bipartisan colleagues have led very large conversations involving some of the most innovative and well-known members of the AI community from Elon Musk, to Mark Zuckerberg, to Sundar Pichai. And this is all preparing for what should be major legislation.

For founders, it’s important to consider whether your business case depends on either regulation or the absence of regulation, how liability impacts your business case, and whether you’re already taking that into account or not. It’s important to understand that while Congress and the administration may not be able to move as quickly as the technology is developing. They will move. They are taking this more seriously than any of us can remember an issue being taken. And we should anticipate that there will be activity very soon.

If you want to know more about how the US government is developing AI policy and what that means for startups, you can watch the full interview here.