OpenAI stumps in Washington

From: POLITICO's Digital Future Daily - Tuesday May 16,2023 08:14 pm
Presented by CTIA – The Wireless Association: How the next wave of technology is upending the global economy and its power structures
May 16, 2023 View in browser
 
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By Mohar Chatterjee

Presented by CTIA – The Wireless Association

With help from Derek Robertson

OpenAI CEO Sam Altman speaking during a hearing.

OpenAI CEO Sam Altman testifies before the Senate Judiciary Subcommittee on Privacy, Technology, and the Law on Capitol Hill on May 16, 2023. | Francis Chung/POLITICO

Celebrity tech CEO Sam Altman of OpenAI made his debut appearance before Congress Tuesday, alongside two other artificial intelligence experts, for three hours of questioning on how Washington should regulate the rapidly developing technology.

CEO hearings can be pure political theater, but this morning the Senate quickly delved into the nitty-gritty of policymaking — and Altman himself pitched ideas for regulating the industry.

Fuelling the Senate Judiciary subcommittee’s inquisition on AI oversight was the desire not to repeat the mistakes of the past, where Congress has been criticized for being too hands-off, such as with social media.

As with most hearings, the session offered more questions than answers — the biggest, of course, being whether Congress has any stomach for regulating a new industry at all.

Here are three big unknowns that now hang over Washington’s efforts to control a profound and disruptive new technology.

Do we need a new federal agency?

Surprisingly, this one may have bipartisan support. Senate Judiciary Committee Chair Sen. Dick Durbin suggested the need for a new agency dedicated to overseeing the development of artificial intelligence — possibly an international one. “We’re dealing with innovation that doesn’t necessarily have a boundary. We may create a great U.S. agency — and I hope that we do — that may have jurisdiction over U.S. corporations and U.S. activity that doesn’t have a thing to do with what’s gonna bombard us from outside,” he said.

Republican Sen. Lindsey Graham, the ranking member on the Judiciary Committee, chimed in by backing the idea of an agency that would issue licenses for powerful new AI tools.

For his part, Altman was on board with both the agency and the licensing idea during the hearing — and says he’s looking globally, not just nationally, for regulations.

“It’s difficult. It sounds sort of like a naive thing,” he said to a group of reporters after the hearing. “But we’ve done it for other industries. [The International Atomic Energy Agency] did it. And I think this is a technology we should treat with that level of seriousness.”

Not everyone agrees, though: Fellow panelist Christina Montgomery, IBM’s chief privacy and trust officer, said existing oversight is enough to govern AI. Echoing a more familiar industry talking point, she said more would stifle innovation.

Who owns the data that AI trains on?

The biggest and most powerful AI platforms — the “large language models” made by OpenAI and others — are built on massive amounts of existing data, much of which is made by people who had no idea their work would be used to train a piece of software.

Front and center for Sen. Marsha Blackburn was the issue of who should own all the AI-generated material produced by large language models trained on copyrighted works. The Tennessee senator introduced antitrust legislation to break up TicketMaster in the last Congress.

While Altman did not have much to offer in terms of solutions to the growing community of creators angry about their work being used to train large language models, he did say during the hearing that people should be able to opt out of having their data be used to train those models.

Tomorrow, this issue will be front-and-center at a House Judiciary Subcommittee about the intersection of generative AI and copyright law.

How much will AI influence the 2024 election?

Chatbots are very good at simulating human speech and writing, and Sen. Josh Hawley brought up AI’s ability to sway people’s opinions in the 2024 election cycle, saying it could be used to target undecided voters in an election cycle.

Later, Sen. Amy Klobuchar offered her own concerns that ChatGPT could provide inaccurate information to voters about the election itself.

Altman didn’t get defensive. In fact, he agreed.

"It’s one of my areas of greatest concerns — the more general capability of these models to manipulate, to persuade, to provide sort of one-on-one disinformation,” said Altman.

Both Altman and Gary Marcus, an AI expert who also sat on the panel, sought to distinguish generative AI in the tech policy conversation from the discussion around the algorithms that social media platforms use to recommend content.

In an apparent effort to distinguish OpenAI from the social media platforms under congressional fire for their content moderation and recommendation policies, Altman emphasized that OpenAI’s AI models did not maximize for audience engagement.

 

A message from CTIA – The Wireless Association:

America does not have enough full-power, licensed spectrum to meet exploding demand and fuel 5G-driven innovation. Congress must act now to restore FCC auction authority and allocate 1500MHz of new 5G mid-band spectrum to secure reliable wireless for all, and America’s leadership of the industries and innovations of the future. We can lead the world if we act now. Learn more at More5GSpectrum.com.

 
more ai on the hill

Sen. Gary Peters (D-Mich.) talks to reporters.

U.S. Sen. Gary Peters (D-Mich.). | Kevin Diestch/Getty Images

While U.S. senators were grilling Sam Altman today, one of their colleagues held a court of his own on the use of AI in government systems.

Sen. Gary Peters (D-Mich.) led a Senate Committee on Homeland Security and Governmental Affairs hearing today that explored the use of AI in federal agencies. The hearing came just a day after he and Mike Braun (R-Ind.) introduced the AI Leadership Training Act.

That act would require the Office of Personnel Management to provide an AI training program for federal government supervisors and managers. A press release announcing the measure said its meant “to help federal leaders understand the capabilities, risks, and ethical implications associated with AI, so they can better determine whether an AI capability is appropriate to meet their mission requirements,” building on legislation Peters introduced last year to educate those procuring AI tools for federal agencies.

Amid calls for government intervention up to and including the AI equivalent of a Manhattan Project, as Samuel Hammond called for in POLITICO Magazine last week. The bill would be a modest first step in that direction — or as Peters put it in the press release, at least toward ensuring government has some of “the expertise needed to ensure this technology benefits the American people.” (More from Peters’ hearing today from POLITICO’s Brendan Bordelon in tomorrow’s DFD.) — Derek Robertson

 

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eu crypto disclosures

The European Union is planning to crack down on crypto-related tax evasion.

A piece of legislation approved today by EU finance ministers will require crypto companies to disclose the owners of the digital assets they hold, as POLITICO’s Bjarke Smith-Meyer reported for Pro s this morning. Starting in 2026 if the bill passes through Parliament, the new disclosure framework will help regulators understand where and whose money is circulating throughout the crypto market, as well as make it harder for Europeans to hide tax assets in said market.

The European Commission’s tax chief, Paolo Gentiloni, called it a means to “ensure that all member tax authorities have the information they need to ensure a level playing field in relationship to crypto assets and to ensure that taxes are paid on the profits made by trading or investing in crypto assets.”

As for exactly what form those taxes will take, or who they’ll apply to, it’s still unclear. There is no blanket tax framework for crypto in the EU, just a patchwork of national laws. As Bjarke writes, when it comes to taxes amid the EU’s regulatory labyrinth “There are no guarantees, especially considering how all countries, regardless of size, can veto any EU tax initiative they don’t like.” — Derek Robertson

 

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Tweet of the Day

Buddy, u aren't gonna get killed because AI went evil, ur gonna get killed because an AI robot traffic cone placement robot thought u looked like a traffic cone

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