On January 22, Davis Hake and Heather West published “The AI Regulatory Wave Is Here. Prepare for Turbulence, Not Clarity” in the WSJ’s Risk Journal. The following is an excerpt:
Governments, regulators, standards bodies and multilateral institutions are all trying to govern artificial intelligence, just as enterprises are moving AI pilots into full-scale deployments.
Unlike prior technology cycles, AI is advancing through rapid capability leaps in months, not years. This comes amid heightened scrutiny of safety, bias and dual-use risks. For corporate leaders deploying AI tools, the result is a governance landscape defined by overlapping rules, inconsistent terminology and legal uncertainty that can delay compliance reviews and stall innovation across the business.
Shareholders, partners and customers are demanding that companies operationalize AI responsibly. But what does “responsible” mean when obligations vary across jurisdictions and shift by the week? It means that companies cannot wait to build governance capabilities that can withstand near-term turbulence.
Attempting to limit AI regulation may add to complexity
The regulatory picture has become even more complicated with President Trump’s recent AI executive order asserting sweeping federal authority over AI governance and looking to prevent states from enacting their own AI rules. In the absence of a U.S. AI law, states have moved aggressively to set their own “high-water marks” across a range of AI risks.
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