Campbellsville University InfoTech in a Global Economy Discussion Question 1:
Technology is ever-evolving, there has been a constant introduction of new technology into the market for quite a while now. Somewhere someone discovers something new that is better than the existing technology so there comes the need for change or upgrade to that new technology because that new technology does a better job than the existing technology. All this new technology that is being brought into the market is sometimes good for the well being of the people and sometimes it is not. There needs to be someone on the top of these new technologies to regulate and control if the technology is doing more harm than being beneficial. So, the new technology needs regulations and rules to be within bounds and produce maximum benefits. Regulations also control the cost of the new technology and make it more affordable to everyone. Without regulations, the technology can be priced at any level based on the demand. Regulations also control the growth of these new technologies and control the harm or loss of jobs and unemployment that is because of the introduction of this new technology.
I am going to talk about blockchain and cryptocurrency as an example of new technology. There has been massive popularity of this cryptocurrency among all the youth and investors and digital currency have become a craze. This violent growth of cryptocurrency has affected the financial system of several countries and the stock markets have seen massive losses when this cryptocurrency came into the market (Hughes, 2017). Because of the lack of proper regulations on this cryptocurrency, several countries have faced financial losses. There should be a regulatory body to control cryptocurrencies. This proves that new technologies should have regulations to control the growth of that new technology and produce maximum gains from it.
Hughes, S. (2017). Cryptocurrency Regulations and Enforcement in the U.S. Western State Law Review, 45(1), 1-28.
I think regulations are needed because:
1. To improve the economic efficiency this provides information asymmetries and helps in minimizing the cost. While working on a new technology the cost necessary and involved could be unpredictable, so it’s important to identify economic policies.
2. Regulations and policies provide independence, transparency, privacy, predictability, legitimacy, and credibility for the entire system. These rules impact the advancement of technologies and help prior to planning for the study and research regarding the technologies.
3. The responsibility of regulations and governance is global; any technology should be flexible enough to accommodate the differences across the countries with the legal systems and cultural values. Werlin (2003), claims that the difference between the rich and poor countries has to do with the governance rather than resources.
There can always be more valid reasons based on the particular technology and the field it belongs to. But I think, these three reasons should be accumulated and considered with every new emerging technology.
The technology I’m leaning towards is AI, hence AI has numerable amount of threats (such as AI systems should be monitored or cannot be trusted entirely) which are indisputably real, regulations are necessary and inevitable. AI is still an emerging technology and many people have different opinions and ideas on this topic, so regulations are needed to address and satisfy all the people. Even though AI has established its impact until now, it still needs a few more years to advance and prove in all the possible ways. While formulating the regulations and policies for AI, it helps in sighting the future developments, academic progress, understanding the economic, social and political impacts of AI better.
Wang, W., & Siau, K. (2018). Artificial Intelligence: A Study on Governance, Policies, and Regulations. In Thirteenth Annual Midwest Association for Information Systems Conference (MWAIS).
Wright, S. A., & Schultz, A. E. (2018). The rising tide of artificial intelligence and business automation: Developing an ethical framework. Business Horizons, 61(6), 823-832.