The United States (US) has urged G20 countries to take a lighter approach to artificial intelligence regulation, arguing that excessive rules could slow innovation, investment and the development of new AI technologies. 

The proposal was discussed at a G20 Innovation Ministerial meeting in Chapel Hill, North Carolina, where US officials pushed for a more flexible framework focused on growth rather than introducing broad new AI-specific laws.

White House technology adviser Michael Kratsios introduced what the US calls the “Carolina Principles”, which encourage governments to avoid creating new regulations for AI where existing laws can already address the issue. 

The approach suggests that policymakers should focus mainly on problems that are unique to AI instead of treating every new technological development as a separate regulatory challenge.

The US position has received support from major technology companies, which have warned that heavy regulation could increase costs, slow product launches and make it harder for companies to compete globally. 

Nvidia CEO Jensen Huang, OpenAI CEO Sam Altman and other technology leaders participated in discussions around AI development and regulation. Huang has argued that governments should focus on real-world risks rather than restricting AI because of possible future harms.

Interestingly, China also backed the Carolina Principles, despite having introduced several AI-related rules of its own. However, the details of the G20’s agreement were not fully disclosed, and countries continue to have different views on how AI should be governed.

The debate also highlights the growing divide between the US and the European Union. While Washington is pushing for fewer AI-specific restrictions, the EU has taken a more structured, risk-based approach through its AI regulations. The difference could make it difficult for countries to agree on a single global framework.

For India and other emerging economies, the issue is more complex. Governments need to encourage AI investment and innovation while also dealing with concerns around privacy, jobs, copyright, misinformation and safety. The G20 discussions could therefore shape how countries balance technological growth with safeguards.

The latest meeting shows that the global AI policy debate is moving towards finding a middle ground between innovation and regulation, with the US clearly pushing for a growth-friendly approach.

Unlock profitable opportunities every day! Tradz by EquityPandit provides actionable intraday trading signals for stocks and futures. Don’t miss out – download Tradz by EquityPandit and start winning now!