Is AI regulation going to unnecessarily protect jobs that we might be better off without?

AI regulation: Where are we now?

AI’s tendrils seem to be just about everywhere! From policing social media content, to mass surveillance video analytics; from transcribing and summarising meetings to content generation; from surgical robots to medical decision-support diagnostics. The chief concern on the mind of some is how is it going to affect my job?

And for many, the question is framed in a far more challenging way: Is it going to help me do it better, or is it going to put me out of my job?

Consequently, there is deep suspicion and fear in labour markets around the world as workers wonder what the future of AI means for their career success and personal prosperity.

The global effort to regulate AI worldwide

Globally, the race is on to develop AI and maximise advantage. Popularly, it is believed that China is winning the war to commercially exploit AI. China is rushing to corner the market wherever it can with patent filing for thousands of inventions, but this may not be a true indicator of the real situation.

Alongside the race to win economically is the global effort to regulate AI. This is a complex, rapidly evolving and characterised by these key trends:

• Rapid evolution – The pace of AI development outstrips regulatory frameworks, creating challenges in keeping up with technological advancements.
• Risk-based approach – Many nations are adopting a risk-based approach, focusing on regulating high-risk AI applications while allowing for innovation in lower-risk areas.
• International cooperation – Recognising the global nature of AI, there’s a growing emphasis on international collaboration to develop common standards and principles.
• Balancing innovation and safety – Regulators strive to create an environment that fosters AI innovation while ensuring public safety and trust.
• Focus on specific areas – Regulatory efforts often concentrate on particular AI applications, such as recruitment, autonomous vehicles, healthcare, and facial recognition.

AI regulatory efforts in Australia and the UK

Australia’s AI regulatory journey indicates a cautious yet proactive approach. The country is committed to fostering innovation while mitigating potential risks. The focus on a risk-based framework suggests a flexible approach adaptable to the evolving AI landscape.

Australia has been actively engaging with the rapid development of artificial intelligence (AI) through a combination of policy development, research, and industry collaboration.

The UK Government’s Office for Artificial Intelligence  oversees the implementation of the UK’s National AI Strategy. One key element of the UK’s effort is to favour a non-statutory approach because it offers “critical adaptability” that keeps pace with AI technology.

In November 2023, the UK hosted the AI Safety Summit, symbolically held at Bletchley Park, the renowned site of Allied computer-based code-breaking efforts of WWII. Former Prime Minister Rishi Sunak seems to have successfully positioned the UK as a leader and the centre for international co-operation in the effort to control AI.

Worldwide it seems that if effective AI regulation is the goal, it is wise to keep regulatory thinking under continual review, as AI development is rapid and its direction of travel is uncertain.

Tough AI regulation: Now does that really equate to progress?

While some C level executives and owners may be relishing the prospect of reducing salary and labour as fixed costs through investing in AI, they need to be careful what they wish for…

If the irrevocable march of technology teaches us anything, it is that it has the power to disrupt just about any established business model. AI increases this potential significantly. It isn’t just about how AI is going to change jobs; it is how it is going to change industries, sectors and marketplaces.

Another point that is often made by the tech industry in general and AI companies in particular is the risk of over-regulation killing-off innovation. 

One argument here is that regulation might stifle development leading to an uncompetitive labour market and marketplaces. This is especially true if one country’s AI regulation is out of step with the rest of the world.

For example, should the use of AI heavy goods vehicles (HGVs) be prevented through regulatory constraints, then the need for human truck drivers will continue. If the rest of the world doesn’t follow, then transport costs in other markets are likely to be a lot less, with ticket prices in home markets more expensive. 

More than that, the opportunities for truck drivers will be severely restricted in overseas markets. To put it another way, is AI regulation going to unnecessarily protect jobs that we might be better off without?

A key consideration for legislators is whether a tough approach to regulating AI really equates to progress. Poorly conceived, heavy-handed regulation may well represent interventions that distort markets and produce detrimental effects.

Get up to speed on upskilling and reskilling with ETZ

An important consideration for recruitment agencies is ensuring your workers are a good fit with the needs of the market. Agency contractors need to be in step with the way that AI is changing their jobs. Find out more about upskilling and reskilling in this ETZ blog.

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