The European Commission is meticulously pulling together findings to assess export controls on “critical technology areas” that feature artificial intelligence (AI) and semiconductor technologies. The endeavour is in response to the potential risk that these technologies pose, not only technologically but also regarding human rights violation. On the latest update, four pivotal areas have been identified for risk assessments, namely AI, advanced semiconductors technologies, quantum technologies and biotechnologies.
Their choice was influenced by the transformative nature of these technologies and, more aggravatedly, the risk of civil or military fusion. Commissioner for the internal market at the EU Commission, Thierry Breton, deemed this procedure as indispensable to fortify the EU’s “resilience.”
Meanwhile, the US has been exerting concerted initiatives on evaluating the export risks harbored by similar sectors. Exemplifying this, the US administration has prohibited the export of high-grade AI semiconductor chips to China. Many US lawmakers are vouching for laws which necessitate industries to disclose any investments in Chinese technologies.
In contrast to the solid risk-averse stand of the EU and the US, this has stirred other global players to contemplate their governance on AI technologies. With the rise of blockchain and AI advancements unfolding at such speeds, these type of regulatory moves raise questions about both the future possibility for global cooperation, as well as whether these risk assessments could potentially staunch the flow of information and stifle innovation.
Risks assessments are supposed to be completed by the end of this year, with any decisions to be announced by spring 2024. The strategy pivots on “protection against risks” and strengthening the European competitive position in certain markets—a stance which might make waves for the crypto industry, given all the potential innovations and opportunities that AI technologies and AI chips may bear for the sector.
On another note, The Bank for International Settlements has developed a tracking system for on-chain and off-chain transactions from cryptocurrency exchanges and public blockchains. Named Project Atlas, the proof-of-concept aims to provide insights into the economic implications of cryptocurrency markets and decentralized finance protocols. As the AI and blockchain technologies are gradually becoming more entwined, this development points towards a future where AI might play a bigger role in the crypto space, one that would be carefully watched by EU regulatory authorities.
Take heed, however, before lapping up AI’s promises, as it comes with its own set of vulnerabilities. Among them, privacy, security, and the potential misuse of the tech. A healthy dose of scepticism could go a long way, as the industry navigates the uncharted waters of the AI-rife blockchain universe.
Source: Cointelegraph
