At the AI Action Summit in Paris this February, world leaders grappled with the future of artificial intelligence, but the path forward remains as fragmented as ever. As global AI regulation stumbles along, companies that proactively align with international standards are positioning themselves for a competitive edge, according to a series of reports from GlobalData, parent company of Power Technology.
The regulatory landscape for AI is a complex patchwork, with the EU prioritizing consumer protection, the US favoring business interests, and countries like China focusing on government security. This divergence, detailed in GlobalData’s Global AI Regulatory Landscape report, creates significant challenges for businesses trying to navigate the global market.
Delays further complicate the picture. The US government is pushing back against state-level regulations, while the European Commission may postpone the EU AI Act. In the UK, opposition to a proposed copyright reservation mechanism has stalled progress, leaving both businesses and creators in limbo, according to GlobalData’s Artificial Intelligence Executive Briefing.
Despite these challenges, GlobalData asserts that compliance with international standards will benefit companies in the long run. “Companies that already align with international standards (where available) and management risk frameworks will have an advantage over their competitors when regulation becomes fully applicable,” the report states.
The AI market is expected to grow exponentially, from $103 billion in 2023 to over $1 trillion by 2030, according to GlobalData forecasts. As organizations increasingly integrate AI into their software stacks, the technology’s evolution is set to accelerate. However, GlobalData emphasizes that there is no trade-off between innovation and regulation. “The common challenge of the different approaches is ensuring regulations remain relevant to a technology that is evolving quickly while not hampering innovation,” the report explains.
The key takeaway for businesses is clear: while the regulatory environment may be uncertain, proactive alignment with international standards can provide a significant competitive advantage. As the AI market continues to grow, companies that prioritize compliance and risk management will be well-positioned to capitalize on the technology’s transformative potential. The question now is whether businesses will seize this opportunity or be left behind by the pace of change.