Artificial intelligence is reshaping the very soul of media—how we create, how we distribute, and how we engage with content. From optimizing content on YouTube to delivering precisely targeted ads, AI's disruptive potential in media is undeniable.
But AI is reshaping the soul of almost every industry.
And as this technology grows more powerful, governments are rushing to lay down some ground rules. Still, the USA is the most fertile environment for the development of AI, and this creates more opportunities for American companies to be leaders.
What’s the USA Doing?
The U.S. Commerce Department recently introduced new reporting requirements for developers of advanced AI models and the infrastructure providers that support them. These regulations are part of an initiative following Biden’s executive order aimed at ensuring the "Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence" without stifling innovation.
Under the new rules, developers working with AI models requiring over 10²⁶ integer or floating-point operations to train must report their activities. In other words, if you’re building GPT-4 or processing high-resolution video, you have to inform the government. For those using biological sequence data, the threshold is lower at 10²³ operations—applicable to genomic sequencing or modeling synthetic organisms. AI that creates deep fakes based on human data may also need to report on their models' capabilities and security measures, especially concerning potential misuse in cybercrime or weapon development.
These requirements extend to infrastructure providers who must report if their computing clusters surpass 300 Gbit/sec in networking capacity or meet certain performance benchmarks. By setting these standards, the US allows innovation while protecting national security through transparency.
This move follows the Commerce Department's tightened restrictions on exporting quantum computing and semiconductors to countries like China, Iran, and Russia. While this may sound limiting, the U.S. remains less restrictive and more flexible around AI than the EU and China. Europe leads in comprehensive regulation, and China focuses on strict control, which is why the US will continue to lead in AI innovation.
Should there be more regulation in the USA?
Historically, the US has fostered environments where experimentation thrives. This light-touch regulatory framework is key. But as AI grows more powerful, it does need guardrails—just not too many. Transparency of algorithms and clear rules for social media? That’s a good idea. Requiring more visibility into how AI systems work? Definitely useful. But overly restrictive controls could stifle the innovation fueling growth in this space.
The EU: The Most Comprehensive Restrictions
Europe’s Artificial Intelligence Act, which came into force on August 1, 2024, categorizes AI systems based on risk, from “minimal” to “unacceptable”, with higher-risk applications—like those in healthcare facing strict oversight.
The Most Restrictive: China
China’s approach to AI is more tightly controlled. For instance,“Generative AI Measures” are focused on content moderation and privacy, requiring companies to comply with strict regulations aimed at “maintaining social stability.” If only TikTok in the USA were held to the same standard! Domestically, AI innovation is closely monitored, while Chinese companies are pushed to compete globally.
But while the EU and China are moving quickly to regulate AI, the USA has taken a more measured approach. Agencies like the National Institute of Standards and Technology (NIST) have rolled out voluntary guidelines (note the word “voluntary”) that focus on fostering AI that remains trustworthy while allowing room for businesses to innovate.
Should Content Moderation and Healthcare be on the Same Footing?
Interestingly in the EU and China both, content moderation is treated with almost the same level of scrutiny as healthcare applications. Media companies using AI for personalized content recommendations or advertising must adhere to transparency standards to ensure fairness and prevent the manipulation of audiences.
What about Tech Savvy Israel?
Israel, renowned for its thriving tech industry, has adopted a more flexible approach to AI regulation. Instead of broad sweeping laws, Israel uses a layered framework adjusting to different sectors' needs. This allows media companies the freedom to innovate while addressing ethical concerns like bias and privacy through industry-specific guidelines.
Industries like healthcare and financial services have stricter rules, while creative sectors like media and entertainment enjoy more freedom to experiment. The Israeli government actively participates in international discussions, ensuring its AI regulations promote domestic growth and global scalability.
Countries with flexible regulation—rather than stringent, all-encompassing rules—can foster innovation while still managing risks.
What Does Erik Schmidt Think?
Erik Schmidt, former Google CEO and well-recognized thought leader in AI, has been vocal about his concerns. He argues that demanding AI systems to explain their decisions could slow down innovation. After all, machine learning models are often black boxes—meaning we don’t always understand how they produce their results. Europe’s push for transparency, Schmidt warns, may hamper companies’ ability to fully leverage AI, particularly when it comes to innovation. He specifically said that the USA is 2-3 years ahead of China when it comes to AI, and Europe is not even “relevant” in the AI-arms race due to their restrictions.
The EU has said that their intentions are to protect consumers and maintain ethical standards. But there’s an underlying worry that these efforts could end up stifling technological progress.
Why Restrictions Matter… They block the ‘Magic’ in R&D
In a recent Vox article, Apple Intelligence, Apple’s new AI-powered Siri software, was labeled (hilariously) as “magically mediocre.” The term “magic” immediately made me think of OpenAI CEO Sam Altman’s response when asked about ChatGPT’s tendency to make “mistakes.” He pointed out that the very process that leads to those errors is what makes AI magical.
If AI can’t be wrong or experimental, it won’t stumble upon moments that make it the most thought-provoking technology today. Just like humans, sometimes mistakes are when the cool stuff happens. I fully support privacy, but maybe the reason Vox used “magically” in front of “mediocre” when discussing Apple’s AI is because Apple prioritizes privacy above all else, perhaps to the detriment of the very product that should freeing up our time and creativity, not constraining it.
Balancing Innovation with Oversight
The current regulatory climate offers a unique advantage to U.S. media companies. While Europe’s heavy regulations may slow AI adoption and China’s restrictive model may limit innovation, U.S. stations can thrive in a space that encourages experimentation while embracing responsible AI practices.
The flexibility to innovate, combined with a commitment to ethical AI, positions the U.S. media industry to lead in using AI. U.S. broadcasters, operating in an innovation-friendly environment, have the chance to lead the charge—leveraging AI to shape the future of broadcasting responsibly and creatively.
Fostering innovation with minimal oversight empowers industries beyond media—such as healthcare, finance, manufacturing, and logistics—to integrate AI more effectively. Without overly restrictive regulations, companies can enhance efficiency, reduce costs, and improve decision-making. This freedom leads to advancements in personalized medicine, predictive analytics, supply chain optimization, and smart manufacturing, driving economic growth. As AI becomes embedded across industries, the U.S. economy becomes more resilient and competitive, leading global technological advancements.
Moreover, new jobs will emerge. 75% of today's tech jobs didn't exist a decade ago. The Brookings Institute projects 700,000 new manufacturing jobs by 2030, and the U.S. Chamber of Commerce estimates that precision agriculture technologies will create over 250,000 new rural jobs by 2025.
By promoting innovation while ensuring transparency and accountability, the U.S. can continue to thrive. Striking the right balance will keep the nation at the forefront of AI development—now and in the future.
Daniel Anstandig is Founder and CEO of Futuri, whose AI-driven technology solutions are used by thousands of broadcasters worldwide to grow their content, audience, and revenue. He holds 20 published or pending patents in 151 countries worldwide. Reach him at linkedin.com/in/anstandig/.
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