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Why AI Regulation Is an Opportunity for CEOs

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Why AI Regulation Is an Opportunity for CEOs

Boston Consulting Group,

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CEOs have an opportunity to collaborate with regulators to fuel innovation through regulation.

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While many CEOs view AI regulations as constraints, it’s a mistake to ignore the opportunities collaborating with governments to create “regulatory sandboxes” might afford you. The Boston Consulting Group provides a useful introduction to an increasingly complex web of AI regulation, assuring CEOs that innovation and regulation can coexist. Government incentive programs can provide companies with unique opportunities, provided you invest in sharing your internal expertise with those shaping emerging regulatory AI ecosystems.

Summary

The emergence of AI regulations provides opportunities for collaboration.

CEOs can’t afford to ignore AI regulation anymore: When Meta violated EU-US data transfer rules, it faced a fine of $1.3 billion, demonstrating the severe consequences of noncompliance. That said, CEOs would be remiss to view regulation solely as a constraint, as companies also have opportunities at this pivotal stage in regulation to collaborate with policy-makers in developing mutually beneficial regulations. Ideally, AI regulations will both provide companies with effective safeguards and leave room for innovation and experimentation.

Governments around the world are piloting programs that promote innovation within “regulatory sandboxes,” which provide access to unique data and which experiment within a “safe,” government-established, digital space. Governments have also launched incentive...

About the Authors

Kristen Rulf, François Candelon, Gaurav Jha, Clément Dumas and Max Männig are professionals with the Boston Consulting Group.

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