It's not 'regulatory capture' by the AI giants, but it's still regulatory robbery
"Regulatory capture" is a counterintuitive concept to some, but it makes perfect sense to those who have watched Washington work.
TL;DR
- Regulatory capture is when government regulators become a benefit to the big businesses they regulate, rather than protecting competitors, customers, workers, and taxpayers.
- Alex Tabarrok argues that classic regulatory capture takes time and happens subtly, suggesting the AI industry's call for regulation isn't this phenomenon.
- Dario Amodei, Sam Altman, and Elon Musk, leaders in the AI industry, are advocating for stricter federal regulation of AI.
- The author argues that Big Business often lobbies for and benefits from stricter regulation, sometimes even being the architect or first proposer of such rules.
- Historically, industries have often fathered regulations rather than capturing agencies after their creation, with examples including tax preparers, hedge funds, and Big Tobacco.
- George Stigler defined regulation as being acquired by the industry for its own benefit.
- The author calls the AI giants' proactive creation of regulations for their own benefit 'regulatory robbery'.