This paper was originally published by the Cato Institute.
Executive Summary
Discussions about artificial intelligence (AI) have taken on an increasingly pro-regulation tone. At the state and local level over the past two years, for example, lawmakers have proposed hundreds of pieces of legislation that would impact AI-powered technologies. In this paper I investigate the opportunity costs associated with new state and local regulations that are intended to control the creation or use of AI. Utilizing data and existing research on the economic impacts of regulation and innovation, I demonstrate why state and local governments should consider a more restrained regulatory approach.
My paper draws from, and builds upon, existing research exploring the relationship between government institutions, regulatory regimes, and emerging technologies. Understanding the opportunity costs of different regulatory regimes for AI can help lawmakers evaluate tradeoffs and promote policies that support a permissive regulatory environment for public and private experimentation with AI-powered tools.
