Although the Act aims to enhance accountability and safety in AI development, Ram pointed out that it may inadvertently stifle innovation, particularly in areas such as AI model training and intellectual property management.
“As companies grapple with compliance costs and potential legal liabilities, the challenge will be to foster an environment where innovation can thrive without compromising ethical standards,” Ram added.
Srinivasamurthy is optimistic, suggesting that “any new technology that is disruptive will go through this phase of figuring out how much regulation is good and how much is not.” Including major tech companies in the working groups may be crucial for balancing regulation and innovation. Representatives from leading firms like Google and Microsoft will join the groups, alongside nonprofit organizations and academic experts, according to Reuters.
