Striking the Balance: Navigating the Ethics of Generative AI and the Need for Regulation

Big Data at Berkeley
Big Data at Berkeley
4 min readNov 28, 2023

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Photo: Shutterstock

by Surya Mamidyala, EECS ‘24

In the ever-evolving landscape of technology, the debate surrounding the ethical use of generative Artificial Intelligence (AI) tools, particularly in the creative industries, has taken center stage. Two articles shed light on distinct perspectives — one addressing the need for a uniform data privacy system at the state and federal levels, and the other delving into the ethical minefield surrounding generative AI tools in the creative realm. In this piece, we will synthesize both viewpoints and at the end, provide a comprehensive framework to approach AI regulation moving forward.

The first article appears on Bloomberg and is titled “Data Protection Leaders Differ on Powers of New US Privacy Law” and examines the different approaches the federal and governments have taken to protect consumer’s data privacy.

The Urgency for Federal Data Privacy Laws

The absence of a comprehensive federal data privacy law in the United States has led several states, including California, Colorado, and Virginia, to enact their own consumer data privacy laws. Alan Butler, Executive Director of the Electronic Privacy Information Center, argues that the current patchwork system creates gaps and necessitates a strong national standard for data protection. He emphasizes the threats posed by the surveillance economy to human rights and democracy, where technology has outpaced legislation, enabling big tech companies to exploit and monetize user data.

Butler advocates for the American Data Privacy and Protection Act, a bipartisan initiative that stalled in Congress, emphasizing the importance of limiting data collection through a robust data minimization rule. He contends that strong federal protections, ensuring both user rights and corporate obligations, are essential for striking a balance between privacy and innovation. The overarching goal is to safeguard individuals’ privacy rights uniformly across all states and major platforms.

Preserving States’ Flexibility in the AI Arena

Contrastingly, Hayley Tsukayama from the Electronic Frontier Foundation (EFF) asserts that a federal data privacy law overriding state protections is not the solution. She argues that states have been proactive in enacting privacy rights, citing examples like Illinois’ Biometric Information Privacy Act. Tsukayama contends that federal legislation should preserve states’ agility to build additional privacy protections on top of a national foundation. She warns against framing the debate as a battle between federal and state jurisdiction, emphasizing that it is a broader struggle between the present and the future.

It’s important to realize the AI landscape is constantly changing and in recent years, compute and machine learning architectures have advanced to the point where generative AI is now possible and widely used in applications like Stable Diffusion and ChatGPT. With this technology, it’s important to also consider the disruption made to the creative industries and how we can continue to protect artist’s creative freedom but at the same time encourage innovation. This leads us to our second article on Medium which explores exactly that and is aptly titled “The Great Generative AI Debate: To Use or Abuse.”

Generative AI: A Creative Ethical Dilemma

The article outlines the ethical challenges posed by generative AI tools. In particular, the writers, who are in a research studio called Domestic Data Streamers, highlight the dilemma of using AI models trained on datasets containing both public domain and copyrighted content, often without explicit consent from the artists. The discussion revolves around the potential misuse of generative AI tools, exemplified by the Lensa app that transformed selfies into digital illustrations, generating revenue without compensating the original artists.

The Need for Regulation in Generative AI

The article underscores the necessity of regulation in the AI industry, pointing out the lack of rules governing the use and development of generative AI technology. It raises concerns about the potential economic impact on artists and calls for opt-in programs, payment to artists for the use of their work, and algorithmic disgorgement to remove artists’ work from datasets.

Finding a Balanced Approach

Combining insights from both articles, it is evident that a balanced approach is needed in the regulation of AI ethics, both in data privacy and generative AI. While federal legislation is crucial for ensuring a baseline of privacy protections, it should not stifle states’ ability to adapt and enhance these protections. Similarly, in the realm of generative AI, regulations should strike a balance between fostering innovation and protecting the rights of content creators.

Recommendations for a Comprehensive Framework

Federal Data Privacy Laws:

  • Enact strong federal data privacy laws that set a baseline for user protection.
  • Allow states to augment these laws to address specific regional concerns and give states the flexibility needed to quickly address consumer privacy issues

Generative AI Regulation:

  • Create a registration and verification process for ensuring that all commercial generative AI models use public domain content or legally use non-public domain content (get consent from relevant artists)
  • Implement opt-in programs for artists, ensuring consent before their work is used
  • Establish payment mechanisms for artists (upfront sums and royalties) when their work is utilized by AI models. Ensure there’s a backward payment procedure where for-profit AI companies can pay all previously affected artists a sum per generation where they used their works/names without permission
  • Develop algorithmic disgorgement processes to remove artists’ work from datasets upon request.

Ongoing Evaluation and Adaptation:

  • Periodically review and update regulations to keep pace with evolving AI technologies. May involve creating a regulatory board/council in federal and states government that regularly evaluates AI capabilities/use cases and makes sure consumer data privacy and artist’s copyrighted work are protected
  • Encourage a collaborative approach involving lawmakers, technologists, and artists to ensure a comprehensive and ethical framework.

In conclusion, a nuanced and adaptable regulatory framework is imperative to navigate the complex landscape of AI ethics. Balancing the need for privacy, innovation, and artistic rights requires collaborative efforts at both the state and federal levels, ensuring a future where technology coexists harmoniously with ethical considerations.

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