In a recent X post (formerly Twitter), the chief executive of Coinbase, Brian Armstrong, opposed regulating the use case of artificial intelligence (AI) technology. Despite the inherent risk associated with the adoption of AI technologies, the CEO urged regulators to impose policies that will support the growth of the industry.
Importance of AI Technology
In his September 23 post, the executive underlined the need to support the development of AI. A review of a recent study by McKinsey demonstrated that AI adoption has increased by 56% in 2021.
The statistics demonstrated that the adoption of AI has gained steady growth. With the rise of the adoption of AI technology, Armstrong urged the regulators to implement strategies to promote innovation and technology development.
The executive admitted that AI technology has massive potential to support data processing, critical in promoting national security. The official explained that despite the efforts made by the regulators to ensure safe and secure adoption of advanced technologies such as AI, some regulations had unintended consequences.
Coinbase CEO Stands Against AI Regulation
The CEO criticized some regulatory approaches that triggers unhealthy competition and undermine innovation. In his address, Armstrong stated that friendly regulation supported the Internet’s growth back in the 1900s.
He describes the internet era as a golden age for innovation. In his observation, Armstrong noted that the internet’s free and open access nature inspired the regulators to minimize their regulatory action on the industry.
At that time, the government enforced a national policy on information and technology that attracted the growth of the internet and other revolutionary technologies. Besides the policy, the government-funded research to improve the internet use case and foster innovation and technology development.
Armstrong noted that the government’s involvement in developing the internet aimed at promoting economic growth. In his address, the Coinbase CEO argues that the regulators and the government should formulate policies to support the development of the AI sector.
Instead of regulating the AI sector, the CEO urged the regulators to adopt measures that protect the industry. He regretted that regulating AI might undermine growth.
Coinbase Calls for Decentralization of AI Sector
However, Armstrong underscored the need to decentralize the sector to improve the government’s capabilities to leapfrog the development of AI. The CEO requested the critical players in the AI sector to invest in creating open-source protocols to improve adoption.
The Coinbase CEO’s positive stance on AI validates a recent study by the UK Competition and Market Authority (CMA) that illustrated artificial intelligence can enormously improve the community’s well-being. The CMA noted that AI will transform people’s lives and redefine business processes.
The competition regulators explained that AI will bring rapid changes, which will have a negative impact on competition. The CMA highlighted that AI technology will support fast-paced companies to dominate the markets. This practice is considered harmful competition, which might result in the violation of consumer protection regulations.
Significance of Regulating AI
The CMA concluded that regulators should impose measures to support consumer protection and foster economic growth. The CMA report echoes a UK Prime Minister’s AI task force call to regulate AI technology.
The task force envisaged that AI will become more powerful in the next two years. The Prime Minister and his team urged the UK regulators to expedite the implementation of AI rules.
Elsewhere, the Chinese authority enforced AI regulation last month. Under the new provision, the Chinese regulators outlined the provisional guidelines for regulating AI activities in the region.