After President Joe Biden issued an artificial intelligence (AI)-focused executive order in 2023, experts suggest it’s only thꦗe beginning of AI regulation in the U.S.

With more AI regulation anticipated in 2024, tech giants, like Microsoft Corp. (MSFT), could be best positioned to gain while regulators work to keep up with the emerging techn🔴ology.

As advancing AI tech is further integrated into people’s lives, 澳洲幸运5官方开奖结果体彩网:regulation has become a growing p🎉riori💎ty intended to limit the risks associated with the tech.

“Privacy, safety, security, transparency, avoiding bias and discrimination, and accountability,” are common themes considered in AI regulation, Duane Pozza, a lawyer at Wiley in Washington, D.C., who's focused on legislation involving emerging tech, told Investopedia.

2023 Recap

President Biden too🌸k the first s🦹teps toward widespread AI regulation in 2023.

Before issuing an 澳洲幸运5官方开奖结果体彩网:executive order outlining general safeguards for AI use, Biden enlisted 澳洲幸运5官方开奖结果体彩网:voluntary agreements from major companies leading the development of the tech including 澳洲幸运5官方开奖结果体彩网:Google parent Alphabet Inc. (GOOGL), 澳洲幸运5官方开奖结果体彩网:Facebook parent M𝔍eta Platforms Inc. (META), 澳洲幸运5官方开奖结果体彩网:Amazon.com Inc. (AMZN), 澳洲幸运5官方开奖结果体彩网:Microsoft (MSFT), 澳洲幸运5官方开奖结果体彩网:OpenAI Inc. and 澳洲幸运5官方开奖结果体彩网:Nvidia Corp. (NVDA).

“One thing is clear: To realize the promise of AI and avoid the risks, we need to govern this technology,” President Biden said, noting he considers the executive order “the most significant action any government anywhere in the world has ever taken on AI safety, security, and trust.” 

“AI policy is like running a decathlon,” White House special advisor for AI, Ben Buchanan, told Investopedia. Buchanan, who was involved in the creation of the executive order, said that “from [the] thicket of AI and civil rights to the intersection of AI national security, AI and workers' rights, and consumers,” the president is prepared to address “all the different ways in which AI can affect our society.”

Regulation in US Could Lead The Way

Companies acros✅s the world are working on AI but regulation in the U.S. specifically could serve as an international 🐟standard. 

“Right now, it's an American technology,” Haim Israel, head of global thematic research at Bank of America, said, telling Investopedia that AI regulation is something his firm is monitoring in 2024.

🅠 Biden’s executive order is a step toward widespread regulation but is not the only way that the government is working to implement AI guidelines.

The “Biden executive order is going to have a lot of impacts throughout what agencies are doing in the government, but has very limited ability to require private companies to do certain things,” Wiley's Pozza said, highlighting that the executive branch of the federal government isn't alone in exploring regulation.

Sector-specific agencies, like the 澳洲幸运5官方开奖结果体彩网:Federal Trade Commission (FTC) and the 澳洲幸运5官方开奖结果体彩网:Food and Drug Administration (FDA), work in industries that are alre🔯ady heavily regulated where there is “no AI exemption from [existing] policies,” Pozza noted, as opposed to some areas where the law is less clear.

Some state governments are considering AI-focused laws, with California being “the state to watch in 2024,” Pozzo said, as state legislators consider proposals that would require companies to do mandatory 澳洲幸运5官方开奖结果体彩网:risk assessments.

Regulators Could Struggle To Keep Up

A major diff�💧�iculty that those creating AI policies face is keeping up with the rapidly evolving technology. 

Biden's 2023 executive order provides flexibility for adjustments, according to White House special advisor Buchanan, “as time goes on because we know that technology might move in ways that we don't expect."

“Self-regulation by the tech industry around AI 🌺will be key,” Dan Ives, a tech analyst at Wedbush Securities told ꦺInvestopedia, saying that “regulators are going 25 mph in the right lane while AI tech and Big Tech are in a Ferrari going 100 mph in the left lane.”

Ives indicated that the firm isn't expecting robust AI regulation until 2024 or even 2025, as AI emerges as “the biggest tech transformation since the start of the Internet.”

🍸Big Tech Companies Positioned To Come Out on Top

Tech giants could be poised to benefit disprop♛ortionately from wide-reaching regulation, expeꦏrts suggest.

“The impulse toward early regulation of AI technology may also favor large, well-capitalized companies,” Goldman Sachs research found.

“Regulation typically comes with higher costs and higher barriers to entry,” Eric Sheridan, senior equity research analyst at Goldman, said in a report, noting that the “larger technology companies can absorb the costs of building these 澳洲幸运5官方开奖结果体彩网:large language models, afford some of these computing costs, as well as 𓂃comply with regulation."

In 2023, big tech company shares experienced a rally that outpaced the market at large, which may reflect “investors recognizing the potential such players have to develop transformative AI applications,” Goldman's research said.

Ives, the Wedbush analyst, echoed a similar sentiment, saying that the “lack of consensus” in Washington “makes Big Tech the winner for now, led by Microsoft."