In a recent interview at Bloomberg House on the sidelines of the World Economic Forum’s annual meeting in Davos, Switzerland, Ruth Porat, president and chief investment officer at Alphabet and Google, discussed the global race for AI dominance between the United States and China. Porat highlighted that the U.S. currently leads in AI model development, estimating the lead to be over a year ahead. However, she noted that China is on par or possibly ahead in the diffusion of AI’s basic capabilities across various sectors, indicating a nuanced competition where strengths vary by application and implementation.
Porat emphasized that maintaining this lead is not guaranteed and requires strategic interventions. She stressed the importance of a regulatory framework that is both bold and responsible, advocating for regulations tailored to specific sectors rather than a uniform approach. According to Porat, the risks associated with AI applications in areas like email auto-complete are fundamentally different from those in healthcare, suggesting that existing regulations should be adapted rather than creating new, potentially cumbersome rules for AI applications.
Investment frameworks are another critical area, where Porat called for mechanisms that would encourage private sector capital investment while fostering public-private sector collaboration. She sees this as essential for driving innovation and ensuring that the economic potential of AI is fully realized.
Moreover, Porat underscored the need for the U.S. to engage globally, not just within its borders. She noted that many countries are eager to participate in digital transformation, preferably with the U.S., but are willing to proceed independently if necessary. This international aspect, she argued, should influence U.S. policy to ensure it remains competitive and attractive for global partnerships.
On the regulatory side, Porat introduced a mnemonic “FAB” – Focus, Aligned, and Balanced. ‘Focus’ suggests that regulation should be sector-specific; ‘Aligned’ points to the need for consistent regulatory standards across different geographies to avoid a patchwork that might deter investors; and ‘Balanced’ refers to weighing the risks of inaction against the potential benefits of AI deployment, particularly in life-saving applications like healthcare or safety-enhancing technologies like autonomous vehicles from Waymo.
Porat’s insights reveal a complex landscape where maintaining AI leadership involves not just technological advancements but also strategic, regulatory, and collaborative efforts across borders. Her discussion serves as a call to action for policymakers, businesses, and investors to craft an environment where AI can thrive, innovate, and contribute to global economic and social benefits while managing risks appropriately.
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