{"id":9751,"date":"2023-10-30T12:08:31","date_gmt":"2023-10-30T12:08:31","guid":{"rendered":"\/blogs\/?p=9751"},"modified":"2024-03-25T08:07:56","modified_gmt":"2024-03-25T08:07:56","slug":"how-todays-technology-is-influencing-tomorrows-compliance-structures","status":"publish","type":"post","link":"https:\/\/seersco.com\/blogs\/how-todays-technology-is-influencing-tomorrows-compliance-structures\/","title":{"rendered":"How Today&#8217;s Technology is Influencing Tomorrow&#8217;s Compliance Structures"},"content":{"rendered":"\n<p>In our modern era, technology is moving much faster than human laws can regulate. And while we hope that tech companies will universally look out for consumer rights, this typically isn\u2019t the case. In fact, it took the American government <a href=\"https:\/\/www.usg.edu\/galileo\/skills\/unit07\/internet07_02.phtml\" target=\"_blank\" rel=\"noopener\">nearly 20 years after the internet\u2019s inception<\/a> to regulate it at all. To this day, all governments still struggle with how to regulate it.&nbsp;<\/p>\n\n\n\n<p>If history repeats itself, then it\u2019s very likely that our consent laws will fall behind. They already have. With the advent of AI technology, artists and writers have to opt-out, rather than opt into technology that uses their work to train AI systems. They can do this thanks to legal loopholes.<\/p>\n\n\n\n<p>Technology is only going to continue to move at a faster pace. If lawmakers want to stay ahead of the game, they need to become more responsive, proactive, and dynamic. Fortunately, multiple kinds of technology can play a role in our regulatory systems of tomorrow.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The Three Principles for Regulation Tomorrow&nbsp;<\/h2>\n\n\n\n<p>A fascinating paper by the <a href=\"https:\/\/digitalcommons.wcl.american.edu\/cgi\/viewcontent.cgi?article=1028&amp;context=aublr\" target=\"_blank\" rel=\"noopener\">American University Business Law Review<\/a> created three principles for future regulation. These principles will likely shape how we\u2019ll regulate new technologies.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Minimum Regulatory \u201cSandbox\u201d&nbsp;<\/h3>\n\n\n\n<p>The minimum regulatory sandbox was created by The Financial Conduct Authority (FCA), the financial regulatory body in the UK. This legislation allows Fintech companies to test out new technology-based ideas, even if they don\u2019t meet applicable regulatory rules and regulations.<\/p>\n\n\n\n<p>But to ensure tech companies don\u2019t go overboard, the FCA declared some parameters:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The duration of the test is limited to three to six months<\/li>\n\n\n\n<li>The customer pool should be big enough to generate relevant data and information<\/li>\n\n\n\n<li>Customers should be informed about the test, know the parameters, and be paid<\/li>\n<\/ul>\n\n\n\n<p>In a sense, tech companies could violate some laws, but not every law. If these parameters made it to the US, companies couldn\u2019t violate <a href=\"https:\/\/activeprospect.com\/blog\/tcpa-consent\/\" target=\"_blank\" rel=\"noopener\">TCPA consent<\/a> laws because consent is required.<\/p>\n\n\n\n<p>According to the American University Business Law Review study, the Sandbox law has been pretty successful. Not only does this allow companies to test new ideas under discussion and democratic supervision, but it also allows the public to participate in regulatory debates. What results are more laws and regulations that suit the consumer, not the tech companies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">The Data-Driven Regulatory Intervention<\/h3>\n\n\n\n<p>It would be nearly impossible to regulate technology without technology. Our ability to gather and learn from real-time data is a thing we take for granted, but data isn\u2019t being used to its full potential. With data, we can understand what, when, and how to regulate new technology.<\/p>\n\n\n\n<p>As the American University Business Law Review study mentioned, a big reason why governments stay away from data-collecting, especially when it comes to creating regulations, is because the task is tedious. However, data can be used to predict when the next big thing will be, and that can save time. It\u2019s also really easy to <a href=\"https:\/\/seersco.com\/blogs\/the-most-important-steps-in-data-management\/\">grab this data<\/a> from American startups.&nbsp;<\/p>\n\n\n\n<p>If we switch to a data-driven regulatory system, we can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Understand what technologies are up-and-coming. This allows governments to be more proactive and avoid time wasted on technologies that won\u2019t make it to the market.<\/li>\n\n\n\n<li>Understand when a regulatory investment should be made. If we use data in tandem with the sandbox regulation, we can actually know precisely when tech will come out.<\/li>\n\n\n\n<li>Understand how to regulate based on demand. If a lot of people are showing interest in a tech product or service, then it would be worth it for governments to regulate it.<\/li>\n<\/ul>\n\n\n\n<p>These steps would completely avoid the issues we\u2019re seeing with AI technology, as we\u2019d know why consumers want it to be regulated and when these regulations should come into place.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">A Principle-Based Approach&nbsp;<\/h3>\n\n\n\n<p>Tech is a global phenomenon, and even if it wasn\u2019t, the laws that regulate it are. For example, the <a href=\"https:\/\/seersco.com\/articles\/gdpr-compliance\/\">GDPR act that legislates the EU<\/a> isn\u2019t tied to EU countries. If an American business wants to sell to a person in an EU country and not get in trouble, they have to abide by these rules.<\/p>\n\n\n\n<p>This phenomenon is why many lawmakers see legislation as competitive. The first country that makes fair, people-first legislation becomes the envy of other countries. Soon, lawmakers will have to adopt this new law or be left in the dust. A technology-first country has to be adaptable and flexible to compete, meaning finality and legal certainty have to become a thing of the past.<\/p>\n\n\n\n<p>The quickness of technology should determine the quickness of legislation. If governments get something wrong, there\u2019s no reason why they can\u2019t change it. It shouldn\u2019t be more difficult to change a law than it is to create a new one. This system will hurt every person on the planet.<\/p>\n\n\n\n<p>If we adopt a principle-based approach, we can change compliance laws based on new data. This is much safer than \u201cwaiting and seeing,\u201d which clearly hasn\u2019t worked for modern legislation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">In Conclusion\u2026&nbsp;<\/h2>\n\n\n\n<p>Change is difficult for anyone to grapple with, but it\u2019s an inevitability. Trying to fight how technology is shaping our world will mean that the wrong people will govern how it\u2019s used.<\/p>\n\n\n\n<p>There\u2019s no doubt that we\u2019re going to get a few things wrong, even with the three principles. But getting things wrong shouldn\u2019t cause fear, as flexibility will make it possible for us to fix our mistakes. When any law is created, there will always be positive and negative consequences.<\/p>\n\n\n\n<p>If any country wants to keep up with <a href=\"https:\/\/moonpreneur.com\/blog\/latest-developments-in-artificial-intelligence\/\" target=\"_blank\" rel=\"noopener\">advancements in AI<\/a>, new privacy laws, and the rights of workers\/consumers, governments must play their part. Everyone benefits from a system that\u2019s proactive in creating laws and regulations surrounding technology, so there\u2019s no reason not to.&nbsp;<\/p>\n\n\n\n<p>After all, without some rules in place, our consent laws won\u2019t be applicable in the new world.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":9752,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-9751","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-50","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/posts\/9751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/comments?post=9751"}],"version-history":[{"count":0,"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/posts\/9751\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/media\/9752"}],"wp:attachment":[{"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/media?parent=9751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/categories?post=9751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/seersco.com\/blogs\/wp-json\/wp\/v2\/tags?post=9751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}