Technology, Business & Cool Toys

The New York Times today published my response to an oped by Senators Lindsey Graham & Elizabeth Warren calling for a new “Digital Consumer Protection Commission” to micromanage the high-tech information economy. “Their new technocratic digital regulator would do nothing but hobble America as we prepare for the next great global technological revolution,” I argue. Here’s my full response:

Senators Lindsey Graham and Elizabeth Warren propose a new federal mega-regulator for the digital economy that threatens to undermine America’s global technology standing.

A new “licensing and policing” authority would stall the continued growth of advanced technologies like artificial intelligence in America, leaving China and others to claw back crucial geopolitical strategic ground.

America’s digital technology sector enjoyed remarkable success over the past quarter-century — and provided vast investment and job growth — because the U.S. rejected the heavy-handed regulatory model of the analog era, which stifled innovation and competition.

The tech companies that Senators Graham and Warren cite (along with countless others) came about over the past quarter-century because we opened markets and rejected the monopoly-preserving regulatory regimes that had been captured by old players.

The U.S. has plenty of federal bureaucracies, and many already oversee the issues that the senators want addressed. Their new technocratic digital regulator would do nothing but hobble America as we prepare for the next great global technological revolution.

The R Street Institute has just released my latest study on AI governance and how to address “alignment” concerns in a bottom-up fashion. The 40-page report is entitled, “Flexible, Pro-Innovation Governance Strategies for Artificial Intelligence.”

My report asks, is it possible to address AI alignment without starting with the Precautionary Principle as the governance baseline default? I explain how that is indeed possible. While some critics claim that no one is seriously trying to deal with AI alignment today, my report explains how no technology in history has been more heavily scrutinized this early in its life-cycle as AI, machine learning and robotics. The number of ethical frameworks out there already is astonishing. We don’t have too few alignment frameworks; we probably have too many!

We need to get serious about bringing some consistency to these efforts and figure out more concrete ways to a culture of safety by embedding ethics-by-design. But there is an equally compelling interest in ensuring that algorithmic innovations are developed and made widely available to society.

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Recently, the Future of Life Institute released an open letter that included some computer science luminaries and others calling for a 6-month “pause” on the deployment and research of “giant” artificial intelligence (AI) technologies. Eliezer Yudkowsky, a prominent AI ethicist, then made news by arguing that the “pause” letter did not go far enough and he proposed that governments consider “airstrikes” against data processing centers, or even be open to the use of nuclear weapons. This is, of course, quite insane. Yet, this is the state of the things today as a AI technopanic seems to growing faster than any of the technopanic that I’ve covered in my 31 years in the field of tech policy—and I have covered a lot of them.

In a new joint essay co-authored with Brent Orrell of the American Enterprise Institute and Chris Messerole of Brookings, we argue that “the ‘pause’ we are most in need of is one on dystopian AI thinking.” The three of us recently served on a blue-ribbon Commission on Artificial Intelligence Competitiveness, Inclusion, and Innovation, an independent effort assembled by the U.S. Chamber of Commerce. In our essay, we note how:

Many of these breakthroughs and applications will already take years to work their way through the traditional lifecycle of development, deployment, and adoption and can likely be managed through legal and regulatory systems that are already in place. Civil rights laws, consumer protection regulations, agency recall authority for defective products, and targeted sectoral regulations already govern algorithmic systems, creating enforcement avenues through our courts and by common law standards allowing for development of new regulatory tools that can be developed as actual, rather than anticipated, problems arise.

“Instead of freezing AI we should leverage the legal, regulatory, and informal tools at hand to manage existing and emerging risks while fashioning new tools to respond to new vulnerabilities,” we conclude. Also on the pause idea, it’s worth checking out this excellent essay from Bloomberg Opinion editors on why “An AI ‘Pause’ Would Be a Disaster for Innovation.”

The problem is not with the “pause” per se. Even if the signatories could somehow enforce a worldwide stop-work order, six months probably wouldn’t do much to halt advances in AI. If a brief and partial moratorium draws attention to the need to think seriously about AI safety, it’s hard to see much harm. Unfortunately, a pause seems likely to evolve into a more generalized opposition to progress.

The editors continue on to rightly note:

This is a formula for outright stagnation. No one can ever be fully confident that a given technology or application will only have positive effects. The history of innovation is one of trial and error, risk and reward. One reason why the US leads the world in digital technology — why it’s home to virtually all the biggest tech platforms — is that it did not preemptively constrain the industry with well-meaning but dubious regulation. It’s no accident that all the leading AI efforts are American too.

That is 100% right, and I appreciate the Bloomberg editors linking to my latest study on AI governance when they made this point. In this new R Street Institute study, I explain why “Getting AI Innovation Culture Right,” is essential to make sure we can enjoy the many benefits that algorithmic systems offer, while also staying competitive in the global race for competitive advantage in this space. Continue reading →

James Pethokousis of AEI interviews me about the current miserable state of modern science fiction, which is just dripping with dystopian dread in every movie, show, and book plot. How does all the techno-apocalyptica affect societal and political attitudes about innovation broadly and emerging technologies in particular. Our discussion builds on my recent a recent Discourse article, “How Science Fiction Dystopianism Shapes the Debate over AI & Robotics.” [Pasted down below.] Swing on over to Jim’s “Faster, Please” newsletter and hear what Jim and I have to say. And, for a bonus question, Jim asked me is we doing a good job of inspiring kids to have a sense of wonder and to take risks. I have some serious concerns that we are falling short on that front.

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Profectus is an excellent new online magazine featuring essays and interviews on the intersection of academic literature, public policy, civilizational progress, and human flourishing. The Spring 2022 edition of the magazine features a “Progress Roundtable” in which six different scholars were asked to contribute their thoughts on three general questions:
  1. What is progress?
  2. What are the most significant barriers holding back further progress?
  3. If those challenges can be overcome, what does the world look like in 50 years?

I was honored to be asked by Clay Routledge to contribute answers to those questions alongside others, including: Steven Pinker (Harvard University), Jason Crawford (Roots of Progress), Matt Clancy (Institute for Progress), Marian Tupy (Human​Progress​.org), James Pethokoukis (AEI). I encourage you to jump over the roundtable and read all their excellent responses. I’ve included my answers down below:

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On Thursday, June 9, it was my great pleasure to return to my first work office at the Adam Smith Institute in London and give a talk on the future of innovation policy and the governance of artificial intelligence. James Lawson, who is affiliated with the ASI and wrote a wonderful 2020 study on AI policy, introduced me and also offered some remarks. Among the issues discussed:

  • What sort of governance vision should govern the future of innovation generally and AI in particular: the “precautionary principle” or “permissionless innovation”?
  • Which AI sectors are witnessing the most exciting forms of innovation currently?
  • What are the fundamental policy fault lines in the AI policy debates today?
  • Will fears about disruption and automation lead to a new Luddite movement?
  • How can “soft law” and decentralized governance mechanism help us solve pressing policy concerns surrounding AI?
  • How did automation affect traditional jobs and sectors?
  • Will the European Union’s AI Act become a global model for regulation and will it have a “Brussels Effect” in terms of forcing innovators across the world to come into compliance with EU regulatory mandates?
  • How will global innovation arbitrage affect the efforts by governments in Europe and elsewhere to regulate AI innovation?
  • Can the common law help address AI risk? How is the UK common law system superior to the US legal system?
  • What do we mean by “existential risk” as it pertains to artificial intelligence?

I have a massive study in the works addressing all these issues. In the meantime, you can watch the video of my London talk here. And thanks again to my friends at the Adam Smith Institute for hosting!

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Almost every argument against technological innovation and progress that we hear today was identified and debunked by Samuel C. Florman a half century ago. Few others since him have mounted a more powerful case for the importance of innovation to human flourishing than Florman did throughout his lifetime.

Chances are you’ve never heard of him, however. As prolific as he was, Florman did not command as much attention as the endless parade of tech critics whose apocalyptic predictions grabbed all the headlines. An engineer by training, Florman became concerned about the growing criticism of his profession throughout the 1960s and 70s. He pushed back against that impulse in a series of books over the next two decades, including most notably: The Existential Pleasures of Engineering (1976), Blaming Technology: The Irrational Search for Scapegoats (1981), and The Civilized Engineer (1987). He was also a prolific essayist, penning hundreds of articles for a wide variety of journals, magazines, and newspapers beginning in 1959. He was also a regular columnist for MIT Technology Review for sixteen years.

Florman’s primary mission in his books and many of those essays was to defend the engineering profession against attacks emanating from various corners. More broadly, as he noted in a short autobiography on his personal website, Florman was interested in discussing, “the relationship of technology to the general culture.”

Florman could be considered a “rational optimist,” to borrow Matt Ridley’s notable term[1] for those of us who believe, as I have summarized elsewhere, that there is a symbiotic relationship between innovation, economic growth, pluralism, and human betterment.[2] Rational optimists are highly pragmatic and base their optimism on facts and historical analysis, not on dogmatism or blind faith in any particular viewpoint, ideology, or gut feeling. But they are unified in the belief that technological change is a crucial component of moving the needle on progress and prosperity.

Florman’s unique contribution to advancing rational optimism came in the way he itemized the various claims made by tech critics and then powerfully debunked each one of them. Continue reading →

The Mercatus Center has just released a new special study that I co-authored with Connor Haaland entitled, “Does the United States Need a More Targeted Industrial Policy for High Tech?” With industrial policy reemerging as a major issue — and with Congress still debating a $250 billion, 2,400-page industrial policy bill — our report does a deep dive into the history various industrial policy efforts both here and abroad over the past half century. Our 64-page survey of the historical record leads us to conclude that, “targeted industrial policy programs cannot magically bring about innovation or economic growth, and government efforts to plan economies from the top down have never had an encouraging track record.”

We zero in on the distinction between general versus targeted economic development efforts and argue that:

whether we are referring to federal, state, or local planning efforts—the more highly tar­geted development efforts typically involve many tradeoffs that are often not taken into consider­ation by industrial policy advocates. Downsides include government steering of public resources into unproductive endeavors, as well as more serious problems, such as cronyism and even corruption.

We also stress the need to more tightly define the term “industrial policy” to ensure rational evaluation is even possible. We argue that, “industrial policy has intentionality and directionality, which distinguishes it from science policy, innovation policy, and economic policy more generally.” We like the focus definition used by economist Nathaniel Lane, who defines industrial policy as “intentional political action meant to shift the industrial structure of an economy.”

Our report examines the so-called “Japan model” of industrial policy that was all the rage in intellectual circles a generation ago and then compares it to the Chinese and European industrial policy efforts of today, which many pundits claim that the US needs to mimic. Continue reading →

Discourse magazine recently published my essay on what “Industrial Policy Advocates Should Learn from Don Lavoie.” With industrial policy enjoying a major revival in the the U.S. — with several major federal proposals are pending or already set to go into effect — I argue that Lavoie’s work is worth revisiting, especially as this weekend was the 20th anniversary of his untimely passing. Jump over to Discourse to read the entire thing.

But one thing I wanted to just briefly highlight here is the useful tool Lavoie created that helped us think about the “planning spectrum,” or the range of different industrial policy planning motivations and proposals. On one axis, he plotted “futurist” versus “preservationist” advocates and proposals, with the futurists wanting to invest in new skills and technologies, while the preservationists seek to prop up existing sectors. On the other axis, he contrasted “left-wing or pro-labor” and “right-wing or pro-business” advocates and proposals.

Lavoie used this tool to help highlight the remarkable intellectual schizophrenia among industrial policy planners, who all claimed to have the One Big Plan to save the economy. The problem was, Lavoie noted, all their plans differed greatly. For example, he did a deep dive into the work of Robert Reich and Felix Rohatyn, who were both outspoken industrial policy advocates during the 80s. Reich as affiliated with the Harvard School of Government at that time, and Rohatyn was a well-known Wall Street financier. The industrial policy proposals set forth by Reich and Rohatyn received enormous media and academic attention at the time, yet no one except Lavoie seriously explored the many ways in which their proposals differed so fundamentally. Rohatyn was slotted on the lower right quadrant because of his desire to prop up old sectors and ensure the health of various private businesses. Reich fell into the upper quadrant of being more of futurist in his desire to have the government promote newer skills, sectors, and technologies. Continue reading →

What explains the rebirth of analog era media? Many people (including me!) predicted that vinyl records, turntables, broadcast TV antennas and even printed books seemed destined for the dustbin of technological history. We were so wrong, as I note in this new oped that has gone out through the Tribune Wire Service.

“Many of us threw away our record collections and antennas and began migrating from physical books to digital ones,” I note. “Now, these older technologies are enjoying a revival. What explains their resurgence, and what’s the lesson?”

I offer some data about the rebirth of analog era media as well as some possible explanations for their resurgence. “With vinyl records and printed books, people enjoy making a physical connection with the art they love. They want to hold it in their hands, display it on their wall and show it off to their friends. Digital music or books don’t satisfy that desire, no matter how much more convenient and affordable they might be. The mediums still matter.”

Read more here. Meanwhile, my own personal vinyl collection continues to grow without constraint! …