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“Outside the Box” is Fair Observer’s regular column that delves into the realm of artificial intelligence, which has seamlessly integrated into our daily lives, often unnoticed. Behind the AI we interact with lies a powerful cultural force, one less about algorithms and more about the structure of human society. In this edition, we examine the governance not of AI itself, but of the individuals and organizations that develop and control it.
The highlight of this talk occurred when Schmidt suggested a hypothetical strategy for a new startup. “Make me a copy of TikTok, steal all the users, steal all the music, put my preferences in it, produce this program in the next 30 seconds, release it, and in one hour, if it’s not viral, do something different along the same lines.” He then added: “If it took off, then you’d hire a whole bunch of lawyers to clean the mess up. If nobody uses your product, it doesn’t matter that you stole all the content.”
ChatGPT clearly disapproved of Schmidt’s cynicism, noting the troubling perspective that legal issues could be “cleaned up” after a product gains popularity. It’s intriguing to see an AI recognize the importance of adhering to the principles of law, especially in the context of AI ethics in technology. The barons of Silicon Valley, much like the U.S. State Department, often profess their commitment to these noble ideals but do not hesitate to breach them when it serves their ambitions. Unlike the State Department, which avoids the costs of extensive legal teams, Silicon Valley companies seem to operate under a different set of rules.
At this point of the discussion, I followed up with a new prompt:
“We can agree about the rule-of-law perspective and the need for checks and balances in government, but this is about a mindset, a business culture that thrives on the reality of faits accomplis. Is regulation an effective form of ‘checks and balance’ when it comes to devising a strategy to dominate a marketplace? Historically, the answer seems to be ‘no.’ Schmidt’s perspective reveals that businesses establish their positions, reap the rewards, and then defend their practices with an army of lawyers, which is the very essence of today’s business culture. Regulation alone may not change this dynamic. So, what do you suggest?”
“You raise a compelling point about the limitations of regulation in curbing the aggressive, ‘faits accomplis’ business culture that has come to define much of Silicon Valley and the tech industry at large. Regulation, as it currently functions, often lags behind the rapid innovation cycles of tech companies. By the time laws are enacted, dominant players have already entrenched their market position and amassed profits, creating robust legal defenses to fend off challenges.
Given this reality, here are a few alternative strategies that could address the challenges posed by this business culture, while also aligning with the discussion of AI ethics in technology:
- Antitrust and Market Restructuring: Governments could enforce stricter antitrust measures to prevent monopolistic practices and ensure a more competitive environment in the tech industry.
- Decentralization and Open Standards: Promoting decentralization through open standards could encourage competition and reduce monopolistic behavior among tech giants.
- Public Oversight and Algorithmic Transparency: Mandating transparency around algorithms could help ensure that they do not engage in harmful practices, reinforcing the need for ethical considerations in AI.
- Corporate Responsibility and Ethical Frameworks: Encouraging companies to adopt ethical standards through public pressure and investor activism can foster responsible business practices in the tech industry.
- Empowering Consumers and Employees: Strengthening the voices of consumers and employees can act as a counterbalance to corporate dominance, promoting accountability in tech companies.
- Global Collaboration on Regulation: A coordinated international effort is necessary to create effective regulations that address the global nature of technology and its ethical implications.
- Public Alternatives and Cooperative Models: Developing publicly funded or cooperative tech platforms could provide viable alternatives to dominant private companies, emphasizing user privacy and ethical practices.
While regulation is essential, a combination of these strategies, particularly those that align with AI ethics in technology, may be more effective in addressing the aggressive business culture of Silicon Valley. Changing the incentives that drive companies toward monopolistic practices will require systemic solutions beyond traditional regulation.”
In conclusion, while discussions around AI ethics in technology are crucial, they also highlight the need for a significant cultural shift in how the tech industry operates. Addressing these challenges calls for a reevaluation of the principles guiding business practices in Silicon Valley.
