'REALLY COMPLICATED ISSUES': Inside the push to regulate AI

Key Concepts

• AI Regulation: The need for, and challenges of, regulating Artificial Intelligence, particularly concerning energy consumption and mental health applications.
• Energy Grid Impact of AI: The significant strain AI compute demands will place on energy infrastructure and the potential for consumer price increases.
• Mental Health Chatbots: Risks associated with AI-powered mental health support, including potential for harm and calls for regulation or limitations.
• Biometrics: Growing adoption of biometric technologies for age verification and security purposes, particularly in online platforms.
• Cannabis Rescheduling: The impact of moving cannabis from Schedule I to Schedule III under federal law on the cannabis industry and investment opportunities.
• Mobile Voting: The push for increased accessibility in voting through mobile platforms.

AI Regulation and Energy Consumption

The discussion centers on the urgent need for AI regulation, particularly as the industry scales. Bradley Fussing highlights the current chaotic state of Washington D.C. regarding policy, stating, “Someone has to be in charge…the question is, is it knowledgeable?” He expresses a desire for a “thoughtful AI regulatory framework” from Congress, lamenting the lack of progress thus far.

A primary concern is the immense energy demand of AI, specifically related to data centers and “regenerative AI.” Fussing explains that powering the necessary compute requires “tremendous amounts of energy consumption,” leading to potential price increases for consumers. He predicts regulations will emerge at the state level, preventing local governments from issuing permits for data centers without assurances that local consumers won’t face “massive price increases.” He emphasizes this isn’t a partisan issue, stating, “They just want to protect themselves.” The example of New Jersey’s recent election being heavily influenced by utility cuts and the removal of Georgia Public Commission members demonstrates the voter sensitivity to energy costs.

Mental Health Chatbots: Risks and Regulation

Fussing predicts a widespread ban or severe limitation of mental health chatbots following incidents where some were linked to suicides. He notes bans already in place in Illinois and Nevada. While acknowledging the potential value of accessible mental health support, he cautions, “They’re encouraging people to kill themselves.” He advocates for careful regulation rather than outright rejection, suggesting, “Let’s figure out how to regulate it properly and not throw out the baby with the bath water.” He posits that perhaps AI can be a “good Alps” – a supportive tool – without needing to be “perfect.”

Biometrics and Online Safety

The conversation shifts to the growing use of biometrics, particularly for age verification. Fussing points to Roblox’s voluntary implementation of biometric requirements to protect children using the app. He expands on this, suggesting biometrics can also be used to prevent minors from accessing gambling apps like FanDuel and DraftKings, citing a “huge epidemic of young men that shouldn’t be gambling but are.” This highlights the potential of biometrics to enhance online safety and enforce age restrictions.

Cannabis Rescheduling and Investment

The recent move by the Biden administration to reschedule cannabis from Schedule I to Schedule III is discussed. Fussing characterizes this as a “really positive step” for investors, as it eases restrictions around banking and transportation. However, he cautions against overvaluation of cannabis companies, referencing the Canadian public markets as a cautionary tale. He states, “Things got wildly overpriced,” and emphasizes the importance of sound financial fundamentals: “If the math doesn’t work, the math doesn’t work.” He reveals his personal reluctance to invest in cannabis startups due to perceived overpricing.

Mobile Voting and Voter Turnout

Fussing briefly mentions a push to make voting mobile, suggesting it as a potential solution to low voter turnout. He connects this to the earlier discussion on energy bills, implying that making voting more accessible could increase engagement.

Logical Connections

The discussion flows logically from broad concerns about AI regulation to specific applications and their associated risks. The energy consumption issue is presented as a key driver for regulation, while the mental health chatbot and biometrics segments illustrate areas where regulation is actively being considered or implemented. The cannabis rescheduling discussion provides a case study of how regulatory changes can impact an industry, and the mention of mobile voting ties back to the theme of accessibility and voter engagement.

Notable Quotes

• “Someone has to be in charge…the question is, is it knowledgeable?” – Bradley Fussing, on the need for effective AI regulation.
• “They just want to protect themselves.” – Bradley Fussing, on voter priorities regarding energy costs.
• “Let’s figure out how to regulate it properly and not throw out the baby with the bath water.” – Bradley Fussing, on the potential of mental health chatbots.
• “If the math doesn’t work, the math doesn’t work.” – Bradley Fussing, on the importance of sound financial fundamentals in cannabis investing.

Conclusion

The interview highlights the multifaceted challenges and opportunities presented by the rapid advancement of AI and related technologies. The core takeaway is the urgent need for thoughtful and proactive regulation, particularly concerning energy consumption, mental health applications, and online safety. The discussion underscores the importance of balancing innovation with consumer protection and the potential for regulatory changes to significantly impact industries like cannabis. Ultimately, the success of these technologies will depend on addressing the practical concerns of voters and ensuring that the benefits are widely shared.