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AI-Related Tokens Stumble After White House Executive Order

Critics of President Biden's action wonder if innovation could be stifled.

Updated Nov 1, 2023, 1:00 p.m. Published Oct 31, 2023, 8:47 p.m.
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President Joe Biden yesterday delivered the long-awaited Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence aimed at potential threats posed by artificial intelligence (AI).

"Artificial intelligence holds extraordinary potential for both promise and peril," read the order. "Responsible AI use has the potential to help solve urgent challenges while making our world more prosperous, productive, innovative, and secure ... Irresponsible use could exacerbate societal harms such as fraud, discrimination, bias, and disinformation; displace and disempower workers; stifle competition; and pose risks to national security."

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Calling the order an "ambitious attempt to accommodate the hopes and fears of everyone from tech CEOs to civil rights advocates," Vox's Sara Morrison reminds of the limits of White House power, noting execution of the Biden vision will depend on the actions of executive branch agencies which could find themselves challenged in court. There's also the legislative branch, which is working on its own plans for regulating AI.

"It's terrible for U.S. innovation," wrote former a16z partner and currently Gensyn Network Head of Operations Jeff Amico, calling the order's reporting requirements "essentially public company reporting for startups building large models."

Pointing to language requiring disclosures when large amounts of computing power are acquired, the order, argued Amico, "Treat[s] compute – an inherently neutral technology – as a dangerous resource that must be regulated."

While the cryptocurrency markets are posting modest gains over the past 24 hours, AI-related tokens are lower across the board. Among the movers are The Graph's [[GRT]], Fetch.AI's [[FET]], SingularityNET's [AGIX] and Ocean Protocol's [OCEAN] – each down 4%-7%.

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