Regulatory pressures could also compel tech giants in the semiconductor and AI sectors to implement strategic operational changes. These could include efforts to enhance transparency and compliance through more detailed reporting and closer engagements with regulators.
“Diversification of product offerings is also anticipated, aimed at reducing dependency on high-margin products that draw regulatory scrutiny, potentially expanding into AI software and cloud services,” Rawat added. “Strategic partnerships and acquisitions may play a role in fortifying market positions while adhering to regulations, such as acquiring firms with complementary technologies or collaborating with competitors to establish industry standards.”
Impact on AI-driven services
Regulatory actions could impact the availability of AI-driven services for customers. R&D efforts may slow down as companies grapple with compliance challenges and legal issues, potentially delaying the rollout of new AI technologies and services.
“Moreover, the costs associated with compliance and potential fines could drive up prices for AI products and services, making them less accessible to consumers,” Rawat said. “Conversely, regulatory scrutiny might spur a shift in R&D priorities towards less regulated areas, fostering innovation in new sectors or applications of AI. This diversification could broaden the scope and benefits of AI technologies.”
However, increased regulatory oversight could also improve consumer protections, ensuring that AI services are safe, reliable, and fair. This could enhance consumer confidence and encourage wider adoption of AI technologies despite potential cost increases, Rawat added.
