The Politics of U.S. AI Regulation: An Exploratory Study of Industry Influence and Regulatory Capture in U.S. AI Policymaking

Abstract

The rapid innovation of AI (artificial intelligence) models has struck the world with excitement and fear, drawing AI policy to center stage in public discourse and on Capitol Hill. The nascent nature of AI technology has created information asymmetries between industry experts and governing bodies. Partnerships between industry experts and policymakers are an important part of the regulatory process, but structural challenges arise where industry incentives are misaligned with the public interest. This is the problem of regulatory capture: when regulatory bodies become dominated by the industries they regulate and deviate from the public interest. This is an exploratory study aiming to understand the extent of industry influence and regulatory capture in the U.S. AI policymaking process. To do so, this study examines RFI (Request for Information) comments from U.S. organizations responding to President Biden’s Executive Order 14110 on AI. Findings suggest that although incentives to capture AI Policy appear limited, the technology industry shows signs of regulatory capture mechanisms. Further discussion elaborates on how competitive dynamics within the technology industry and public perception of AI may help explain behaviors of regulatory capture. Since U.S. AI policy is largely still developmental, this study is a timely call to action for policymakers to ensure a democratic regulatory process and for researchers to further explore the subject.