Regulatory

White House AI Guidelines

BitOoda Regulatory Analysis, 7/26/23

Tom Nath

Key Takeaway #1

Seven leading AI companies are voluntarily agreeing to adhere to a set of high-level White House guidelines for the development and deployment of AI in the United States.

Key Takeaway #2

These commitments represent a constructive set of initial standards for AI firms to follow while the official policymaking process takes its course.

Key Takeaway #3

The early establishment of high-level principles and agreed-upon guidelines for AI represents a solid approach toward the development of a clear set of rules for the AI industry.

Key Takeaway #4

Last week, the White House announced that seven leading AI companies – Amazon, Anthropic, Google, Inflection, Meta, Microsoft, and OpenAI – voluntarily committed to adhere to a set of guidelines governing the development and deployment of AI in the United States. The companies agreed to follow these standards until the establishment of more formal regulations, the timing of which is uncertain as agencies and legislators continue to explore the policy issues surrounding AI.

The companies are committing to:

Internal and external security testing before releasing AI systems.
Sharing information on managing AI risks across industry, government, society, and academia.
Investing in cybersecurity and insider threat safeguards.
Facilitating third-party discovery and reporting of vulnerabilities in their systems.
Developing mechanisms to ensure users know when content is AI-generated.
Publicly reporting their systems’ capabilities, limitations, and areas of appropriate use.
Prioritizing research on the societal risks of AI.
Develop and deploy AI systems to address societal challenges.

‍

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Last week, the White House announced that seven leading AI companies – Amazon, Anthropic, Google, Inflection, Meta, Microsoft, and OpenAI – voluntarily committed to adhere to a set of guidelines governing the development and deployment of AI in the United States. The companies agreed to follow these standards until the establishment of more formal regulations, the timing of which is uncertain as agencies and legislators continue to explore the policy issues surrounding AI.

The companies are committing to:

Internal and external security testing before releasing AI systems.
Sharing information on managing AI risks across industry, government, society, and academia.
Investing in cybersecurity and insider threat safeguards.
Facilitating third-party discovery and reporting of vulnerabilities in their systems.
Developing mechanisms to ensure users know when content is AI-generated.
Publicly reporting their systems’ capabilities, limitations, and areas of appropriate use.
Prioritizing research on the societal risks of AI.
Develop and deploy AI systems to address societal challenges.

These commitments represent a constructive set of initial standards for AI firms to follow while the official policymaking process takes its course. We view industry’s engagement with policymakers in both the executive and legislative branches early in the process as a positive step toward ensuring the U.S. becomes a global leader in the AI space.

The Administration coordinated these guidelines with counterparts in 20+ countries, and is taking a top-down, interagency approach to these initial forays into AI regulation. This approach is in stark contrast with the government’s approach to digital asset regulation in the U.S., which has largely been fragmented, uncoordinated, and based on an agency-by-agency (and even state-by-state) approach, rather than a coordinated executive branch effort or any legislative intervention.

The early establishment of high-level principles and agreed-upon guidelines for AI represents a solid approach toward the development of a clear set of rules for the AI industry, as well as the basis for an enduring and constructive public-private discussion as this dynamic field continues to evolve at an exponential pace.

The rapid pace of AI technology innovation, combined with the heightened concern from policymakers about the potential risks, will certainly make the evolution of AI regulation a critical element for industry participants to follow. BitOoda will continue to share our insights as we work to advance the market and provide our clients with compliant solutions.

‍

Disclosures

Purpose

This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.

Analyst Certification

Tom Nath, the author of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.

Conflicts of Interest

This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.

General Disclosures

Any information (“Information”) provided by BitOoda Holdings, LLC, BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or through http://www.bitooda.io/, including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties (express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.

The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, strategies, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance. Commodity trading involves substantial risk of loss.

Ooda Commodities, LLC is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.

BitOoda Technologies, LLC is a member of FINRA.

“BitOoda”, “BitOoda Difficulty”, “BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.

‍

Last week, the White House announced that seven leading AI companies – Amazon, Anthropic, Google, Inflection, Meta, Microsoft, and OpenAI – voluntarily committed to adhere to a set of guidelines governing the development and deployment of AI in the United States. The companies agreed to follow these standards until the establishment of more formal regulations, the timing of which is uncertain as agencies and legislators continue to explore the policy issues surrounding AI.

The companies are committing to:

Internal and external security testing before releasing AI systems.
Sharing information on managing AI risks across industry, government, society, and academia.
Investing in cybersecurity and insider threat safeguards.
Facilitating third-party discovery and reporting of vulnerabilities in their systems.
Developing mechanisms to ensure users know when content is AI-generated.
Publicly reporting their systems’ capabilities, limitations, and areas of appropriate use.
Prioritizing research on the societal risks of AI.
Develop and deploy AI systems to address societal challenges.

These commitments represent a constructive set of initial standards for AI firms to follow while the official policymaking process takes its course. We view industry’s engagement with policymakers in both the executive and legislative branches early in the process as a positive step toward ensuring the U.S. becomes a global leader in the AI space.

The Administration coordinated these guidelines with counterparts in 20+ countries, and is taking a top-down, interagency approach to these initial forays into AI regulation. This approach is in stark contrast with the government’s approach to digital asset regulation in the U.S., which has largely been fragmented, uncoordinated, and based on an agency-by-agency (and even state-by-state) approach, rather than a coordinated executive branch effort or any legislative intervention.

The early establishment of high-level principles and agreed-upon guidelines for AI represents a solid approach toward the development of a clear set of rules for the AI industry, as well as the basis for an enduring and constructive public-private discussion as this dynamic field continues to evolve at an exponential pace.

The rapid pace of AI technology innovation, combined with the heightened concern from policymakers about the potential risks, will certainly make the evolution of AI regulation a critical element for industry participants to follow. BitOoda will continue to share our insights as we work to advance the market and provide our clients with compliant solutions.

‍

Disclosures

Purpose

This research is only for the clients of BitOoda. This research is not intended to constitute an offer, solicitation, or invitation for any securities and may not be distributed into jurisdictions where it is unlawful to do so. For additional disclosures and information, please contact a BitOoda representative at info@bitooda.io.

Analyst Certification

Tom Nath, the author of this report, hereby certifies that all of the views expressed in this report accurately reflect his personal views, which have not been influenced by considerations of the firm’s business or client relationships.

Conflicts of Interest

This research contains the views, opinions, and recommendations of BitOoda. This report is intended for research and educational purposes only. We are not compensated in any way based upon any specific view or recommendation.

General Disclosures

Any information (“Information”) provided by BitOoda Holdings, LLC, BitOoda Digital, LLC, BitOoda Technologies, LLC or Ooda Commodities, LLC and its affiliated or related companies (collectively, “BitOoda”), either in this publication or document, in any other communication, or on or through http://www.bitooda.io/, including any information regarding proposed transactions or trading strategies, is for informational purposes only and is provided without charge. BitOoda is not and does not act as a fiduciary or adviser, or in any similar capacity, in providing the Information, and the Information may not be relied upon as investment, financial, legal, tax, regulatory, or any other type of advice. The Information is being distributed as part of BitOoda’s sales and marketing efforts as an introducing broker and is incidental to its business as such. BitOoda seeks to earn execution fees when its clients execute transactions using its brokerage services. BitOoda makes no representations or warranties (express or implied) regarding, nor shall it have any responsibility or liability for the accuracy, adequacy, timeliness or completeness of, the Information, and no representation is made or is to be implied that the Information will remain unchanged. BitOoda undertakes no duty to amend, correct, update, or otherwise supplement the Information.

The Information has not been prepared or tailored to address, and may not be suitable or appropriate for the particular financial needs, circumstances or requirements of any person, and it should not be the basis for making any investment or transaction decision. The Information is not a recommendation to engage in any transaction. The digital asset industry is subject to a range of inherent risks, including but not limited to: price volatility, limited liquidity, limited and incomplete information regarding certain instruments, products, or digital assets, and a still emerging and evolving regulatory environment. The past performance of any instruments, strategies, products or digital assets addressed in the Information is not a guide to future performance, nor is it a reliable indicator of future results or performance. Commodity trading involves substantial risk of loss.

Ooda Commodities, LLC is a member of NFA and is subject to NFA’s regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians or markets.

BitOoda Technologies, LLC is a member of FINRA.

“BitOoda”, “BitOoda Difficulty”, “BitOoda Hash”, “BitOoda Compute”, and the BitOoda logo are trademarks of BitOoda Holdings, Inc.

‍

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White House AI Guidelines

BitOoda Regulatory Analysis, 7/26/23

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