Open letter cautions about AI urging caution for crypto as well
AI and crypto are two rapidly advancing and complex fields that pose challenges for regulation. However, the voices of whistleblowers in these industries are being silenced, hindering accountability. This was highlighted by an open letter signed by anonymous employees of OpenAI, the creator of ChatGPT, expressing concerns about AI exacerbating inequalities, spreading misinformation, and potentially leading to human extinction. The fact that employees deeply involved in bringing AI to the masses are worried about its future is significant. While they acknowledge the potential benefits of AI, they believe the public and regulators are not fully aware of the risks.
The similarities between AI and crypto are striking. Both industries move at a fast pace and require technical expertise, making it difficult for governments and regulators to keep up. Understanding the issues themselves can be challenging for politicians, as demonstrated by U.S. Representative Brad Sherman’s infamous mispronunciation of Bitcoin’s creator. This lack of understanding hinders the creation of effective laws that promote innovation while deterring illegal activities. By the time authorities catch up, these industries have evolved so much that the legislation in place does not reflect the current use of technology or address the biggest risks. This is evident in the significant regulatory paralysis surrounding cryptocurrencies in the U.S., even after more than 15 years since Bitcoin’s launch.
The open letter focused on AI also highlights the lack of effective government oversight, which results in a heavy reliance on whistleblowers within companies to hold them accountable. One of the authors’ main concerns is how confidentiality agreements prevent them from speaking out. This parallels the situation in the crypto industry, as revealed by a recent report on FTX’s collapse in 2022. The report exposed how legitimate whistleblowers were paid off to remain silent, raising concerns about the industry’s transparency and accountability.
While the crypto industry has taken steps to address past failures, such as bankruptcies, there is still work to be done. The four commitments requested of AI companies in the open letter are also applicable to the digital assets sector. These commitments include refraining from silencing employees who raise concerns, implementing anonymous reporting procedures, and pledging not to retaliate against workers who release confidential information after exhausting all other avenues to address the issue. Similar safeguards in the crypto industry could have prevented some of its biggest controversies.
It remains to be seen how much impact this open letter will have on AI regulation. However, both AI and crypto industries face dire consequences if action is not taken to address the potential harms faced by everyday consumers. Many crypto investors have lost their savings due to a lack of awareness about the risks, and international regulatory coordination is needed to prevent bad actors from operating unchecked. Additionally, as AI becomes smarter and more widely used, the livelihoods of millions of hard-working people could be at risk.
In a related development, Kraken and Binance have been sued for $13 billion, highlighting the need for accountability and regulation in the crypto industry.
