Businesses Urged to Take the Lead on Developing AI Regulation
In New Zealand, businesses are encouraged to adopt a responsible use of generative artificial intelligence (AI) to overcome the widespread skepticism surrounding the technology. A recent webinar organized by The Law Association highlighted the potential risks of unregulated AI, which could stifle innovation.
Current Sentiments Towards AI
Presenter Hannah King referenced a KPMG report indicating that New Zealanders exhibit more distrust towards AI than any other country. The findings reveal that:
- Only 44% of New Zealanders believe the benefits of AI outweigh the risks.
- Just 23% feel that existing regulations are sufficient to ensure safe AI use.
- A significant 81% believe that regulation is necessary.
“We have the lowest rate globally of acceptance, excitement, and optimism about AI,” stated King, emphasizing the need for a comprehensive regulatory approach.
The Importance of Responsible AI
King articulated that the widespread adoption of responsible AI is vital for realizing its potential. According to the World Economic Forum, responsible AI is defined as:
“Building and managing AI systems to maximize benefits while minimizing risks to people, society, and the environment.”
Regulatory Challenges and Global Perspectives
King pointed out that various countries are taking fragmented approaches to AI regulation, which creates challenges for companies operating internationally. Issues such as compliance, public trust, and overlapping regulations are emerging as significant hurdles.
Many nations are shifting towards a risk-based approach to AI regulation, focusing on protecting core values like privacy, non-discrimination, and security. However, governments have historically struggled to keep pace with rapidly evolving technology.
International Regulatory Examples
Globally, different jurisdictions are reacting to the fast-paced development of AI:
- Australia is regulating AI using existing laws and is establishing an AI Safety Institute to identify future risks.
- The United States is largely focused on innovation and deregulation, with state-level efforts centering on privacy and copyright protection.
- The European Union (EU) has enacted an AI Act that categorizes risks into four levels, from unacceptable to minimal, and imposes extraterritorial implications that could affect New Zealand companies.
For multinational companies, EU legislation represents a global high-water mark for AI regulation, prompting a need for consistent governance.
The Situation in New Zealand
Currently, New Zealand lacks standalone AI legislation, with the government opting for a “light touch” approach that combines existing laws with regulatory guidance and industry self-regulation. However, the rapidly changing landscape may prompt future legislative changes.
“There was a cabinet paper in 2024 noting that regulatory intervention should be considered to unlock innovation or address acute risks,” King noted.
Call to Action for Businesses
Businesses in New Zealand are urged to proactively develop AI policies that emphasize a responsible approach to the technology. Fostering trust and encouraging innovation will be crucial for the future of AI in the country.
“The less we focus on responsible AI, the more suspicion and concern will grow, ultimately hindering our progress in AI adoption,” King warned.
In conclusion, it is imperative for New Zealand businesses to lead the charge in developing thoughtful AI regulations that not only protect citizens but also enable innovation to thrive in a responsible manner.
