US AI Regulation Lacks Transparency, Warns Alphabet Board Member

US President Donald Trump has officially signed an executive order to regulate artificial intelligence (AI) technology. The regulation is viewed as inconsistent, largely due to Trump’s close ties with tech giants who played significant roles in supporting his 2024 US Presidential campaign.

The regulation requires technology companies developing AI to voluntarily share their latest models for government review before they are released to the public.

However, the AI regulation initiated by the US government is considered problematic and inconsistent. This is the view of Martin Chavez, Vice Chairman at the investment firm Sixth Street, as reported by Reuters.

Speaking at the Reuters Momentum AI London event, Chavez criticised the current US government regulatory approach, which focuses on reviewing every new AI model individually. He questioned how decisions would be made and who would be responsible for making them.

In essence, Chavez believes the rules lack transparency. He expressed concern that such regulations could further distance the AI industry from equality, potentially increasing future risks.

Chavez is a senior figure in the technology and finance industries and serves on the board of directors of Alphabet, Google’s parent company.

“Proper regulation always emerges after an event has occurred,” said Chavez, referring to financial crises. “We tend to do nothing until something bad happens, and only then do we create regulations,” he added.

The AI boom has heightened concerns regarding the future of the workforce. Many fear that their jobs will be replaced by AI, especially as reports of companies conducting layoffs under the guise of adopting more productive and efficient AI become more frequent.

Chavez emphasised that AI requires regulations similar to post-crisis rules that mandate annual stress tests for financial systems to enhance security.