Sep 23, 2021
If the artificial intelligence assistant's advice to tens of millions of consumers shows signs of destabilizing the economy, give regulators a deceleration mechanism or a pause button, just like the Securities and Exchange Commission's ability to stop trading on a stock exchange. In some cases, financial institutions may be required to establish a deceleration mechanism. Even though these special devices are not the ultimate answer to the problem, they are at least a good expedient.
Although the Federal Trade Commission has reasons to adopt a more accurate economic model for the automation market, the structural changes in the agency are not solely based on an understanding of the automation market. Unlike financial regulatory agencies, the task of trade regulatory agencies is not to identify and manage economic risks that may arise in the future.
Ideally, regulators should be able to both promote policies that support artificial intelligence and manage the risks of artificial intelligence. Its functions should include consumer protection and antitrust governance, as well as broader risk supervision tasks- a large number of privacy, information access, and other threats discovered by scholars. Before any inflection point that justifies the reorganization of supervision comes, it is best for the supervisory agency to use the existing authority and expanded framework to start studying such issues in order to lay the knowledge base for future high-risk decision-making.