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Executive summary: The US, EU, and China are taking different approaches to classifying and regulating AI systems, with key differences in centralization, scope, and priorities.
Key points:
AI systems can be classified by application, compute power, risk level, or as a subclass of algorithms. The classification approach informs the point of regulation in the AI supply chain.
Centralized vs decentralized enforcement and vertical vs horizontal regulations are key structural choices with important tradeoffs for AI governance.
China is taking an iterative, vertical approach focused on specific AI domains, with an emphasis on social control and alignment with government priorities.
The EU AI Act takes a comprehensive, centralized, horizontal approach prioritizing citizen rights protection, with strict requirements for high-risk AI systems.
The US is pursuing a decentralized approach driven by executive actions, with a focus on restricting China’s AI capabilities through semiconductor export controls.
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