As part of our series on AI Risk Management and Financial Regulation, University of Michigan professor Jeremy Kress brings concepts from financial regulation to AI.
I have a certain fondness for "federal floor, state ceiling" regulation, at least where consumer protection is concerned. The Feds, at best, have this habit of getting captured once every four years. At worst, the political economy of federal regulators has a bias toward industry that popularly elected state regulators (e.g., insurance) have less of. State AGs get reelected by taking scalps. Senior federal regulators often wind up in the industry.
However, I'm not sure how to apply this to AI. I'm not even sure what AI means.
I have a certain fondness for "federal floor, state ceiling" regulation, at least where consumer protection is concerned. The Feds, at best, have this habit of getting captured once every four years. At worst, the political economy of federal regulators has a bias toward industry that popularly elected state regulators (e.g., insurance) have less of. State AGs get reelected by taking scalps. Senior federal regulators often wind up in the industry.
However, I'm not sure how to apply this to AI. I'm not even sure what AI means.