AI rules vs innovation: US urges G20 to avoid new regulations as China’s open

The United States is preparing to urge G20 countries to take a hands-off approach to artificial intelligence regulation, arguing that governments should avoid creating broad new rules that could slow innovation. The proposal will be presented at a two-day meeting of G20 commerce ministers and technology industry leaders beginning Tuesday in North Carolina. US tech adviser Michael Kratsios, who is co-hosting the meeting, is expected to promote a framework for AI policy called the “Carolina Principles.” According to the remarks reviewed by Reuters, countries supporting the principles would: -Reserve new AI regulations for genuinely new or novel issues -Invest in foundational AI research to accelerate scientific discovery -Strengthen commercial opportunities for emerging technologies -Avoid treating every new technology as a completely new policy challenge Kratsios is expected to argue that policymakers do not need to regulate each technological innovation separately or assume that every emerging technology requires a first-of-its-kind policy response, Reuters reported. The US is also expected to push G20 members not to create new regulatory organisations to oversee AI development, according to a White House official cited by Reuters. The approach reflects the Trump administration's broader effort to promote technological innovation while limiting what it considers unnecessary regulatory barriers. The discussions come as the global race for AI dominance intensifies, particularly between the US and China. American companies such as OpenAI, Nvidia, Anthropic, Google and Meta have become major players in the AI industry. At the same time, Chinese developers are rapidly improving their AI capabilities. Chinese open-weight AI models are becoming increasingly competitive with proprietary systems developed by American AI companies. These Chinese models are also gaining ground among US companies. That has created concerns in Washington that businesses and other countries could increasingly turn to Chinese AI systems rather than American technology. Vivek Chilukuri, a technology and national security fellow at the Center for a New American Security, told Reuters that these developments have increased the urgency for the US administration to ensure the rest of the world remains within the American technology ecosystem rather than seeking alternatives. Several leading technology executives are expected to participate. Meta CEO Mark Zuckerberg will address ministers by video, while Google DeepMind co-founder Demis Hassabis has also been added to the list of virtual speakers, Reuters reported. OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang are expected to appear before delegates on Wednesday alongside US Commerce Secretary Howard Lutnick, who is also hosting the meeting. The US also plans to have SpaceX CEO Elon Musk and venture capitalist and former White House AI adviser David Sacks address attendees via video on Tuesday. Not necessarily. The US proposal comes as concerns about AI safety and security are growing. A United Nations panel recently warned that AI development is moving faster than scientific understanding and government policy. Concerns have also been raised over AI agents, which can perform tasks with minimal human supervision. Reuters reported that a hack triggered by a rogue OpenAI agent compromised infrastructure at AI company Hugging Face, adding to questions about how effectively companies are testing and monitoring increasingly autonomous AI systems. This puts the G20 debate between two competing priorities: encouraging innovation while managing emerging safety and security risks. Canadian officials are also expected to participate in the meeting. Canada plans to advocate for an approach that balances technological innovation with public trust and safety, according to a Canadian government spokesperson cited by Reuters. The discussions come amid an ongoing trade dispute between the US and Canada. Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.