This is the Cato Daily Podcast for Thursday, July 6, 2023.

I'm Caleb Brown.

While the United States broadly has a more permissionless regulatory system. Regulators in Europe have already made moves to

hamstring the development of artificial intelligence.

Cato's Jennifer Huddleston explains how Europe's data privacy rules threaten the development of promising new technology.

If you look over the proposals that are being offered in the United States to regulate AI, they are extremely broad, betraying perhaps a lack of understanding of what AI is and isn't by US lawmakers and their staffs

But none of these have really moved in a significant way, but Europe has gone much further with their

attempt to regulate AI.

What's the difference between the two approaches so far. Europe has traditionally had a much more

regulatory approach, a much more precautionary approach when it comes to new

technologies, the idea of if you're going to launch something new and innovative,

you need government's permission first.

Whereas in the U.S. we've traditionally for a live technologies had a much more permissionless

approach, an approach that says if you're an innovator with a product that you think consumers would like, that you're able to launch that product in the market and let consumers experience with of course a

couple of very significant exceptions around things like transportation

technology, medical technology but when we're talking about kind of general purpose technology, we've seen these two very different approaches.

One of the things we're starting to see play out right now is this coming up in the context of AI or artificial intelligence.

And it's coming up in two different ways.

On the one hand, you have things like the European proposal for the AI Act that is looking at governing technology

governing this technology specifically which as you described Caleb in and of itself

is a very broad array of things. But then you're also having this other unique

circumstance arise where you're starting to see some of the consequences of the more regulatory

...