GenAI use is expanding faster than rules can keep up, experts warn

The Dutch privacy and data protection authority (DPA) is concerned that businesses and organizations are deploying generative artificial intelligence (GenAI) too easily, and hardly consider the consequences for people and society as a whole.

“GenAI has become part of the digital infrastructure of our society. This brings a whole new set of opportunities and challenges: economically, technologically, legally, and socially,” the Dutch DPA writes in a document detailing the authority’s vision on GenAI.

According to the Statistics Bureau of the Netherlands (CBS), approximately a quarter of all citizens (23%) use GenAI applications, such as ChatGPT. Among young people, that percentage is considerably higher, making the impact of GenAI immediately noticeable in everyday life.

At the same time, the capabilities of GenAI are constantly expanding, and people are increasingly using chatbots as their sole source of information. On top of that, organizations often deploy GenAI technology too easily, without considering the consequences for people and society.

“This brings new and complex challenges in terms of control,” says DPA Chairman Aleid Wolfsen. “Generative AI offers enormous opportunities, but we must use the technology carefully. Innovation is welcome, but it must be accompanied by robust safeguards.”

In its report, the regulator names several undesirable scenarios, including a “Wild West” scenario. In that case, GenAI grows slowly without clear rules, missing out on positive opportunities. Additionally, Europe comes to a standstill because complex and unclear legislation and regulations lead to uncertainty.

On the other hand, too much regulation leads to excessive caution and hinders innovation. This scenario is called the “bunker” scenario.

“GenAI is controllable, but only if we opt for responsible GenAI solutions as a starting point, rather than speed,” Wolfsen adds.

The privacy and data protection authority is asking businesses and organizations to use GenAI technology responsibly by being transparent, considering potential risks, and respecting fundamental human rights.

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Lastly, the supervisor emphasizes that the deployment of GenAI shouldn’t fall into the hands of a few large American tech companies.

“This increases European dependence and puts pressure on our digital autonomy. This is happening in a context of major geopolitical shifts, with economic integration increasingly being used as a means of exerting pressure,” the regulator concludes.

Earlier this week, the Dutch DPA warned that too much reliance on American tech companies would put vital services at risk.

“In recent years, the Netherlands has become heavily dependent on a limited number of large foreign cloud and IT service providers for its vital processes. This dependence, combined with rapidly changing geopolitical relations, means that the Dutch data protection authority (AP) has no choice but to share its serious concerns about the continuity of vital processes in the Netherlands with you,” the privacy regulator wrote.