Regulation Necessary for Artificial Intelligence, Says Y Combinator CEO
Garry Tan, the president and CEO of Y Combinator, recently spoke at The Economic Club of Washington, D.C., where he emphasized the need for regulation in the field of artificial intelligence (AI). Tan expressed overall support for the National Institute of Standards and Technology’s (NIST) efforts to establish a GenAI risk mitigation framework. He also praised the Biden Administration’s executive order, which covers various aspects of AI regulation, such as sharing safety data with the government and ensuring fair access for small developers.
However, Tan expressed concerns about certain regulatory efforts, particularly bills being considered in California and San Francisco. He specifically mentioned a bill proposed by state Sen. Scott Wiener that would allow the attorney general to sue AI companies for harmful products. Tan highlighted the importance of striking a balance between supporting innovation and mitigating potential harms.
To illustrate his point, Tan referred to Ian Hogarth, a former YC entrepreneur and AI expert who is part of the UK’s AI model taskforce. Tan commended Hogarth’s thoughtful approach to AI policy and his acknowledgment of the concentration of power in the industry.
When it comes to funding startups, Y Combinator takes responsibility seriously. Tan stated that if they believe a company’s mission or product would not benefit society, they choose not to fund it. He mentioned instances where they rejected applications from companies that they deemed unsuitable for society.
Artificial Intelligence Leaders Face Challenges
Despite Y Combinator’s responsible approach, the number of AI startups emerging from its cohorts continues to increase significantly. The Winter 2024 cohort included 86 AI startups, nearly double the previous year’s number. However, recent events have raised concerns about whether AI companies can be trusted to define responsible AI.
OpenAI, for example, disbanded its AI responsibility team, leading to questions about the company’s commitment to ethical AI practices. Additionally, Meta faced criticism for creating an all-white male AI advisory council, excluding women and people of color who have made significant contributions to the industry.
Tan, like many Silicon Valley VCs, focuses on the opportunities for new and lucrative businesses in the AI field. He views startups as an idea maze, where new technologies like large language models shake up the landscape. Tan cited the success of ChatGPT, highlighting the potential for rapid success in the consumer market.
The Future of Artificial Intelligence
Tan believes that San Francisco is at the forefront of the AI movement, with companies like Anthropic and OpenAI originating from the area. While he jokes about not starting an AI lab like former YC CEO Sam Altman, Tan recognizes the influence and success of AI startups.
Looking ahead, Tan stresses the importance of approaching AI technology intelligently and considering risks related to bioterrorism and cyberattacks. He advocates for a measured approach to regulation while fostering an environment that allows for consumer choice and entrepreneurial innovation.
Tan’s ultimate fear is not evil AIs but a lack of diversity and competition in the AI market. He warns against a monopolistic situation where only a few models dominate, leading to rent extraction and an undesirable world. Instead, he envisions a landscape with numerous successful startups that can make a positive impact on society while generating returns for investors.