Why does artificial intelligence need regulation?

In March 2024, the European Union approved the world’s first set of major regulatory rules to govern artificial intelligence. The EU AI Act categorizes technologies by risk – low, medium, high, and “unacceptable.” Those deemed the most dangerous can, in Europe, be shut down entirely.

It was a huge change in the tech world, but many may wonder why it was needed. Forms of AI have been used for decades, so aren’t existing laws enough? And how does generative AI differ from traditional AI?

Mike Wade says it comes down to power. Generative AI is worlds apart from its predecessors. The technology could cause disaster in the wrong hands, and, like nuclear energy, it needs regulation. But enforcement of AI rules is tricky. Amit Joshi thinks the explainability of AI, or lack thereof, poses a challenge to regulators.

In this latest episode of Mike & Amit Talk Tech, the two IMD professors discuss these problems in the context of the shifting landscape of AI law.

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Michael Wade is the TONOMUS Professor of Strategy and Digital and Director of the TONOMUS Global Center for Digital and AI Transformation. An expert in AI and digital transformation, he has published 10 books and more than 100 case studies and articles on topics such as AI strategy, digital innovation, and leadership.

Amit Joshi is a Professor of AI, Analytics, and Marketing Strategy. He specializes in helping organizations use artificial intelligence and develop their big data, analytics, and AI capabilities. An award-winning professor and researcher, he has extensive experience in AI and analytics-driven transformations in industries such as banking, fintech, retail, automotive, telecoms, and pharma.