President Joe Biden’s recent Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence has created ripples in the cryptocurrency market, leading to a decline in the value of AI-related tokens. This executive order, issued by the White House, aims to establish a regulatory framework for responsible AI usage. The order introduces guidelines, standards, and best practices with an emphasis on ensuring safety and security.
The Importance of Red-Teaming Tests
One key aspect of the executive order is the implementation of red-teaming tests to manage AI risks. These tests will assist in guaranteeing the robustness of AI systems against potential threats. By conducting such tests, the government aims to identify vulnerabilities and rectify them, thus ensuring the enhanced security of AI applications.
Disclosure of Significant Computing Resources
Another significant rule specified in the executive order involves the disclosure of significant computing resource acquisitions intended for AI work. This rule recognizes the potential risks associated with the computational power required for AI development and seeks to establish necessary oversight to mitigate these risks. By monitoring and regulating the procurement of computing resources, the government aims to prevent any potential misuse of AI technology.
“President Biden’s executive order marks a significant shift towards a more regulated and controlled AI development landscape in the United States. Its primary objective is to safeguard against potential threats arising from AI misuse,” said a spokesperson from the White House.
However, the AI executive order has evoked mixed reactions within the industry. Jeff Amico, Head of Operations at Gensyn Network, expressed concern that the new obligations may only be feasible for “the large incumbents.” According to Amico, the requirement for infrastructure providers to report any transactions involving foreign individuals who are training large AI models with potential malicious intent may hinder innovation and negatively impact the US ecosystem.
“It’s terrible for US innovation,” Amico stated. “The order imposes what are arguably the most expansive AI laws in the world.”
Not only developers but also AI artists have voiced their concerns about the regulations. Claire Silver, the founder of A2 Accelerate Art, described the AI executive order as “the most expansive AI laws in the world,” highlighting the scale and significance of the regulations.
“The impact of this executive order extends beyond the AI industry; it has reverberated throughout the crypto market as well,” said industry experts.
While the global crypto market cap has experienced a minimal increase of 0.08% over the past day, the total market cap of top AI and Big Data tokens has decreased by 3.58%, according to CoinMarketCap. This decline includes a 0.68% decrease for The Graph (GRT), a 4.37% decrease for Render (RNDR), and a 1.70% decrease for Oasis Network (ROSE).
