“On October 31st, the White House officially issued an executive order regarding the safe development and use of Artificial Intelligence (AI) technology to mitigate potential AI threats.
Specifically, the Biden administration requires AI developers to report to the U.S. Government under the Defense Production Act (DPA) if their programs pose risks to national security, local economy, or user health. Additionally, the executive order compels developers to provide solutions to prevent AI’s potential harm to the workforce.
The order emphasizes, ‘Artificial Intelligence has extraordinary potential but also harbors many dangers. When used properly and responsibly, AI can address urgent challenges while making our world more prosperous, productive, innovative, and secure… However, if misused, it can ‘destroy’ the world, posing a danger to national security.’
With this new order, White House Deputy Chief of Staff Bruce Reed described it as the ‘most significant’ action taken by any government worldwide to ensure cyber security.
However, this move has garnered negative reactions from various sectors. The CEO of Tusk Ventures, an investment fund in technology and AI, stated that tech companies would be reluctant to share exclusive data about their AI systems under development with the government due to concerns about data leaks and falling into the hands of competitors.
Not only the tech industry but many crypto companies have also expressed dissatisfaction. Jeff Amico, a former partner at a16z and current CEO of Gensyn Network, criticized the order as detrimental to U.S. innovation. He emphasized that the new rules make startups and those developing advanced technology projects comply and report similarly to large publicly traded organizations.
Immediately after the issuance of the new order, AI-focused tokens such as The Graph (GRT), Fetch.AI’s (FET), SingularityNET (AGIX), Ocean Protocol (OCEAN), and others experienced a 5-10% decline in the past 24 hours, despite the overall market recovery.”