The Kids are Gonna Be OK; The AI Regulators are Not.

This weekend I’m traveling and my daughter is home working.? How quickly the tables have turned.? Just a year ago, I was the breadwinner and my child was the one who was off to summer camp.? This year, I’m playing AI camp counselor and my daughter is building her college fund.? She’s also keeping me updated on current events.

There has been a lot of condemnation of social media, particularly with girls, attributing it to the rise in mental health issues.? And while there are definitely downsides to our digital connectivity, as we enter an election cycle, I’m seeing something different happen that I never expected. My daughter, once the camper, has now become my news anchor.

Yesterday, I received a text:

Kid: They took back the chevron case.

Mom: No idea what that means.

Kid: The chevron case was passed in the 80s and basically what it does is allow the experts in different fields to interpret laws passed by the constitution.? So like the era and stuff like that. Social security. All that stuff. You should look into it more tho.

Mom: OK, I will. [Google search] Just read about it. Yes, that’s a big setback.? We are in for some tough times ahead.

Where did she get her news? TikTok, of course.

As much as we might like to discredit the source, be concerned about the propaganda it spreads, and who controls it–in this moment, my daughter had one of the most important pieces of news to impact AI before I did.? And not only did she receive the news, she understood its implications.

Now, let’s talk about what this means for AI regulation.

What Is Chevron?

The Chevron deference doctrine is a legal principle that has allowed federal agencies to interpret ambiguous statutes as long as their interpretations are reasonable.? This doctrine has been pivotal in shaping how agencies enforce regulations across various sectors, including technology and AI.

On June 28, 2024, the Supreme Court overturned the Chevron deference doctrine in the case of Loper Bright Enterprises v. Raimondo. This landmark decision ends the 40-year precedent that allowed federal agencies to interpret ambiguous statutes with significant judicial deference and the implications for AI are substantial.? Without Chevron deference, agencies like the FTC, FDA, U.S. Copyright Office and the U.S. Patent and Trademark Office (USTPO) will have a lot less agency over interpreting how current law applies to new technology.

How Could This Impact AI Regulation?

This change introduces several potential effects:

1. Increased Litigation: Both the USPTO and the U.S. Copyright Office will likely face more legal challenges to their interpretations of statutory provisions. Courts will now review these interpretations de novo, which means they will not defer to the agency’s expertise and will instead interpret the statutes independently.
2. Regulatory Uncertainty: The lack of Chevron deference could lead to more inconsistency and unpredictability in how laws are applied. This is particularly concerning for patent and trademark regulations, which often involve complex technical and legal issues. The USPTO’s decisions on patent term adjustments and other procedural rules might face heightened scrutiny, complicating the patent examination process and affecting applicants’ strategies.
3. Impact on Innovation: Smaller entities and startups, which rely on predictable regulatory frameworks to innovate and bring new products to market, may find it more challenging to navigate the legal landscape. The potential for increased legal complexity and costs could divert resources from research and development, stifling innovation.
4. Judicial Overreach: The shift in interpretive power from agencies to the judiciary may lead to courts making decisions on complex, technical issues without the necessary expertise. This could result in less effective and less informed policy outcomes.

The Kids are Gonna Be OK

As we stand on the precipice of significant change in the regulatory environment, the contrast between the adaptability of our younger generation and the rigidity of our legal frameworks couldn’t be starker. My daughter, once reliant on my guidance, now navigates the complexities of our evolving digital landscape with ease, even outpacing me in critical news acquisition and understanding.

Kids these days are smart. Smarter than we give them credit for.? When I taught AI in the early days (last year) to high school students, they could see right through AI hallucinations.? They know they can’t believe everything they read and they check their sources.? They are less likely to trust a response from AI as their adult counterparts.? And when it comes to news, they know what they care about and they are getting it out faster.

The upcoming US election is set up to be a doozy, but this next generation of voters do not have their heads buried in the sand.? They are educated. They are vocal. And they are fast. ?

The AI Regulators are Not

As we grapple with this seismic shift in regulatory oversight, it becomes clear that while our youth, like my daughter, adapt and thrive in a rapidly changing world, our institutions face unprecedented challenges. The Supreme Court’s decision to overturn Chevron deference marks the beginning of a turbulent era for AI regulation. Agencies like the FTC, FDA, U.S. Copyright Office, and the USPTO now find themselves in uncharted territory, stripped of the deference that allowed them to navigate complex and evolving technological landscapes.

This decision could result in a cascade of litigation, regulatory unpredictability, and a stifling of innovation. Smaller entities, which thrive on stable regulatory frameworks, may now find themselves entangled in a web of legal complexities and increased costs. The power shift from agencies to the judiciary introduces a new layer of unpredictability, as courts without specialized expertise in technology and AI are now tasked with interpreting nuanced statutory provisions.

The irony is striking: while our children are better equipped than ever to handle the digital deluge, the regulatory bodies designed to protect and guide technological innovation are faltering. The kids, as it turns out, are indeed going to be okay. The AI regulators, however, face a daunting uphill battle. As we move forward, the challenge will be to create a regulatory framework that is as agile and informed as the next generation, ensuring that innovation can flourish in a world that desperately needs it.?

I'm Lori Mazor. I teach AI with a Human Touch.? I'm reinventing how we educate, strategize, and build the future one article at a time. If you enjoy this newsletter.

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