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Comment on the Request for Information on the Development of an Artificial Intelligence (AI) Action Plan

Comment on the Request for Information on the Development of an Artificial Intelligence (AI) Action Plan

The Consumer Choice Center is an independent, non-partisan consumer advocacy group championing the benefits of freedom of choice, innovation, and abundance in everyday life. We champion smart policies that are fit for growth, promote lifestyle choice, and defend technological innovation.

Herein, we will offer our comments on NSF, NITRD, and NSF’s development of an Artificial Intelligence (AI) Action Plan, albeit from a consumer-focused perspective of users and promoters of AI technology.

We offer several standing principles that should be central to any plan carried out by the Executive Branch and its agencies, as well as future areas of collaboration to ensure American citizens and consumers will have full access to the fruits of innovation in this space.

Permissionless Innovation

The United States must commit to empowering its markets and innovators by advancing permissionless innovation. In the past half-century, the most impactful inventions and technologies developed on American shores have emerged from the bottom-up, as self-maximizing entrepreneurs and industrialists have competed to feed consumer demand, employ talent, and deliver goods and services needed across the world. 

This status quo has provided dividends for American security and strength, allowing the country to become much nimbler and more adaptive while avoiding the pitfalls of centralized command and control as practiced in China.

In allowing the unprecedented growth of the Internet through light-touch regulation for decades, the U.S. set global standards for tech and innovation. As a result, rules and regulations have emerged over time rather than been imposed by above, giving innovators the ample space and runway to develop both the hardware 

and software that consumers have come to rely on. We must avoid top-down regulatory approaches on AI and other technologies as they have been tried in blue states, which would only serve to stunt our growth.

By shunning the precautionary principle, which hampers far too much innovation and growth elsewhere, the U.S. has embraced a system that rewards risk and punishes failures through market mechanisms rather than bureaucratic mandates. This unique system, matched with deep capital markets, stable rule of law, and protection of intellectual property, has made the U.S. the ideal launching pad for creative pursuits that have created vast amounts of wealth and opportunities.

Recommendation: In adopting an approach to permissionless innovation and avoiding the pitfalls of the precautionary principle, any future AI plan must guard against the instinct to preempt new AI technology or models by requiring burdensome governmental approval or licensing before launch. Only under rare exceptions related to military applications or deemed extremely high-risk should this be avoided.

Energy Supremacy

As a nation blessed with vast natural resources, the United States must continue to allow the development of energy projects of all stripes to continue to feed electricity grids, but also to power the next generation of data centers, transportation, and industry. This will be pivotal to advantage for next-generation AI technology.

Affordable and abundant energy will be a dominant force in freeing up the resources, time, and wealth for the economic and technological growth to remain competitive, as well as providing for the higher standard of living that will be demanded by the American population. For data centers and computing hubs, cheap energy will be requisite for maintaining an edge. 

While still maintaining environmental standards, removing red tape for pipelines, natural gas extraction, offshore wind, and nuclear energy will have to be viewed as an all-encompassing strategy to maintain the country’s energy supremacy and dominance. Outdated infrastructure will have to be replaced, and regulatory systems will have to be streamlined.

Recommendation: Prioritization of red tape reduction for energy projects and an expansion of a diverse energy mix will allow entrepreneurs to create the infrastructure needed to power the AI revolution. Removal of barriers and fast-tracking of projects should be a necessity, as would approval for new energy technologies.

Hardware and chips The federal government should continue a careful approach to chip exports to undemocratic regimes. At the same time, the federal government should consider liberalizing the rules to ally nations, including European Union member states,, understanding that common market structures and economic incentives better align entrepreneurs and consumers in liberal democracies than outside this sphere.

Recommendation: Continue to monitor export of AI-related hardware to authoritarian regimes, while prioritizing trade with ally nations with similar liberal democratic principles.

Open source development vs model development 

As consumers continue to benefit from open-source Large Language Models as well as proprietary models and products, the federal government should allow consumer competition to create the standards for this new era of technology, rather than codifying any requirements, structures, or computation limits into law. Allowing the best entrepreneurs to compete will deliver the most value for consumers who stand to gain from this technology.

Recommendation: Continue light-touch approach toward open-source developers while allowing closed-source developers and deployers of AI technology similar regulatory clarity to launch products for both commercial and personal use. Allow competition to create standards, rather than federal statutes.

Transatlantic cooperation

The US should collaborate with ally countries, especially European Union member states, for a “Free Nation” corridor for simple technology, capital, and product exchange that removes barriers and enshrines innovation in the AI sector. With an open dialogue and standard to be shared among free nations, this will ensure continued benefit to consumers and innovators in these nations, influencing and providing a model for nations that have yet to codify any AI policies into law.

Recommendation: The creation of a “Free Nation” corridor with EU member states to align with the interests of other liberal democracies and better facilitate trade to benefit consumers in the United States in beyond.

Open-source is for everyone, even your adversaries

Last week, an investigation by Reuters revealed that Chinese researchers have been using open-source AI tools to build nefarious-sounding models that may have some military application.

The reporting purports that adversaries in the Chinese Communist Party and its military wing are taking advantage of the liberal software licensing of American innovations in the AI space, which could someday have capabilities to presumably harm the United States.

In a June paper reviewed by Reuters, six Chinese researchers from three institutions, including two under the People’s Liberation Army’s (PLA) leading research body, the Academy of Military Science (AMS), detailed how they had used an early version of Meta’s Llama as a base for what it calls “ChatBIT”.

The researchers used an earlier Llama 13B large language model (LLM) from Meta, incorporating their own parameters to construct a military-focused AI tool to gather and process intelligence, and offer accurate and reliable information for operational decision-making.

While I’m doubtful that today’s existing chatbot-like tools will be the ultimate battlefield for a new geopolitical war (queue up the computer-simulated war from the Star Trek episode “A Taste of Armageddon“), this recent exposé requires us to revisit why large language models are released as open-source code in the first place.

Added to that, should it matter that an adversary is having a poke around and may ultimately use them for some purpose we may not like, whether that be China, Russia, North Korea, or Iran?

The number of open-source AI LLMs continues to grow each day, with projects like Vicuna, LLaMA, BLOOMB, Falcon, and Mistral available for download. In fact, there are over one million open-source LLMs available as of writing this post. With some decent hardware, every global citizen can download these codebases and run them on their computer.

With regard to this specific story, we could assume it to be a selective leak by a competitor of Meta which created the LLaMA model, intended to harm its reputation among those with cybersecurity and national security credentials. There are potentially trillions of dollars on the line.

Or it could be the revelation of something more sinister happening in the military-sponsored labs of Chinese hackers who have already been caught attacking American infrastructure, data, and yes, your credit history?

As consumer advocates who believe in the necessity of liberal democracies to safeguard our liberties against authoritarianism, we should absolutely remain skeptical when it comes to the communist regime in Beijing. We’ve written as much many times.

At the same time, however, we should not subrogate our own critical thinking and principles because it suits a convenient narrative.

Consumers of all stripes deserve technological freedom, and innovators should be free to provide that to us. And open-source software has provided the very foundations for all of this.

Open-source matters

When we discuss open-source software and code, what we’re really talking about is the ability for people other than the creators to use it.

The various licensing schemes – ranging from GNU General Public License (GPL) to the MIT License and various public domain classifications – determine whether other people can use the code, edit it to their liking, and run it on their machine. Some licenses even allow you to monetize the modifications you’ve made.

While many different types of software will be fully licensed and made proprietary, restricting or even penalizing those who attempt to use it on their own, many developers have created software intended to be released to the public. This allows multiple contributors to add to the codebase and to make changes to improve it for public benefit.

Open-source software matters because anyone, anywhere can download and run the code on their own. They can also modify it, edit it, and tailor it to their specific need. The code is intended to be shared and built upon not because of some altruistic belief, but rather to make it accessible for everyone and create a broad base. This is how we create standards for technologies that provide the ground floor for further tinkering to deliver value to consumers.

Open-source libraries create the building blocks that decrease the hassle and cost of building a new web platform, smartphone, or even a computer language. They distribute common code that can be built upon, assuring interoperability and setting standards for all of our devices and technologies to talk to each other.

I am myself a proponent of open-source software. The server I run in my home has dozens of dockerized applications sourced directly from open-source contributors on GitHub and DockerHub. When there are versions or adaptations that I don’t like, I can pick and choose which I prefer. I can even make comments or add edits if I’ve found a better way for them to run.

Whether you know it or not, many of you run the Linux operating system as the base for your Macbook or any other computer and use all kinds of web tools that have active repositories forked or modified by open-source contributors online. This code is auditable by everyone and can be scrutinized or reviewed by whoever wants to (even AI bots).

This is the same software that runs your airlines, powers the farms that deliver your food, and supports the entire global monetary system. The code of the first decentralized cryptocurrency Bitcoin is also open-source, which has allowed thousands of copycat protocols that have revolutionized how we view money.

You know what else is open-source and available for everyone to use, modify, and build upon?

PHP, Mozilla Firefox, LibreOffice, MySQL, Python, Git, Docker, and WordPress. All protocols and languages that power the web. Friend or foe alike, anyone can download these pieces of software and run them how they see fit.

Open-source code is speech, and it is knowledge.

We build upon it to make information and technology accessible. Attempts to curb open-source, therefore, amount to restricting speech and knowledge.

Open-source is for your friends, and enemies

In the context of Artificial Intelligence, many different developers and companies have chosen to take their large language models and make them available via an open-source license.

At this very moment, you can click on over to Hugging Face, download an AI model, and build a chatbot or scripting machine suited to your needs. All for free (as long as you have the power and bandwidth).

Thousands of companies in the AI sector are doing this at this very moment, discovering ways of building on top of open-source models to develop new apps, tools, and services to offer to companies and individuals. It’s how many different applications are coming to life and thousands more jobs are being created.

We know this can be useful to friends, but what about enemies?

As the AI wars heat up between liberal democracies like the US, the UK, and (sluggishly) the European Union, we know that authoritarian adversaries like the CCP and Russia are building their own applications.

The fear that China will use open-source US models to create some kind of military application is a clear and present danger for many political and national security researchers, as well as politicians.

A bipartisan group of US House lawmakers want to put export controls on AI models, as well as block foreign access to US cloud servers that may be hosting AI software.

If this seems familiar, we should also remember that the US government once classified cryptography and encryption as “munitions” that could not be exported to other countries (see The Crypto Wars). Many of the arguments we hear today were invoked by some of the same people as back then.

Now, encryption protocols are the gold standard for many different banking and web services, messaging, and all kinds of electronic communication. We expect our friends to use it, and our foes as well. Because code is knowledge and speech, we know how to evaluate it and respond if we need to.

Regardless of who uses open-source AI, this is how we should view it today. These are merely tools that people will use for good or ill. It’s up to governments to determine how best to stop illiberal or nefarious uses that harm us, rather than try to outlaw or restrict building of free and open software in the first place.

Limiting open-source threatens our own advancement

If we set out to restrict and limit our ability to create and share open-source code, no matter who uses it, that would be tantamount to imposing censorship. There must be another way.

If there is a “Hundred Year Marathon” between the United States and liberal democracies on one side and autocracies like the Chinese Communist Party on the other, this is not something that will be won or lost based on software licenses. We need as much competition as possible.

The Chinese military has been building up its capabilities with trillions of dollars’ worth of investments that span far beyond AI chatbots and skip logic protocols.

The theft of intellectual property at factories in Shenzhen, or in US courts by third-party litigation funding coming from China, is very real and will have serious economic consequences. It may even change the balance of power if our economies and countries turn to war footing.

But these are separate issues from the ability of free people to create and share open-source code which we can all benefit from. In fact, if we want to continue our way our life and continue to add to global productivity and growth, it’s demanded that we defend open-source.

If liberal democracies want to compete with our global adversaries, it will not be done by reducing the freedoms of citizens in our own countries.

California threatens the future of open source tech and AI

SACRAMENTO, CA – This week, the California legislature will once again consider SB1047, the “Safe and Secure Innovation for Frontier Artificial Intelligence Models Act,” a sweeping framework that aims to regulate and issue compliance guidelines for AI large language models and related products and services.

Consumers of existing AI models and products benefit greatly from what’s happening right now in this sector, thanks to open source developers that make the ecosystem competitive, free, and accessible for all sorts of people with unique use cases in mind.

The mandates and compliance forced by SB1047 threaten innovation and should be rejected by state legislators.

Yaël Ossowski, deputy director of the consumer advocacy group Consumer Choice Center, said of SB1047:

“California’s proposed AI law would bring virtually all development to a grinding halt. This law would require developers to usher their innovations through government bureaucracies to meet various demands and standards that are neither clear nor realistic.

“Most alarmingly, the proposed bill would assign an unprecedented liability standard to open source developers, reducing the incentives for intelligent and creative coders to dedicate themselves to building the next generation of artificial intelligence technologies,” said Ossowski. “This would be perilous for emerging tech innovations that rely on open source models to exist.

“While we all understand the safety concerns that surround AI tools, the people of California – as well as the United States – cannot surrender to doomer fantasies that will only inhibit innovation and development, as well as push this out to countries and jurisdictions more willing to embrace it.

“California legislators may be eager to address the safety and security of AI tech, but it should not be done in haste lest we threaten the very benefits that many users have already come to enjoy. We hope state lawmakers revise this proposed law and support efforts that will at once support innovation, boost open source development, and assuage the fears of certain stakeholders,” concluded Ossowski.


About the Consumer Choice Center:

The Consumer Choice Center is a non-profit organization dedicated to defending the rights of consumers around the world. Our mission is to promote freedom of choice, healthy competition, and evidence-based policies that benefit consumers. We work to ensure that consumers have access to a variety of quality products and services and can make informed decisions about their lifestyle and consumption. 

Find out more at www.consumerchoicecenter.org

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