While AI and privacy dominated discussions, the consumer tech showcase also brought reflections on spectrum policy and the digital divide
AI policy debates centred on competition concerns and the leadership of the FTC
From 7 to 12 January, leading tech firms and industry followers gathered in Las Vegas for the Consumer Electronics Show (CES) put on by the Consumer Technology Association. This year’s iteration of the annual event was dominated by developments in artificial intelligence (AI), including discussions of how to regulate the technology to maximise its benefits while ensuring its safety and security. Despite the recent landmark agreement struck on the AI Act in the EU, most discussions centred on the Biden Administration’s Executive Order on AI and more specific topics in AI safety, such as the use of the technology in healthcare settings. Underlying the policy landscape at CES was a consistent tension with the increased attention competition regulators are paying to the emerging tech. Federal Trade Commissioner (FTC) Rebecca Slaughter emphasised the regulator’s focus on unfair business practices by AI firms, including deceptive practices and privacy violations, alongside a broader interest in tracking any “gatekeepers'' in the field. Familiar tensions with the Biden Administration’s more active approach to competition enforcement through the FTC flared in response, with Gary Shapiro (President, Consumer Technology Association) warning that the US stands to lose its prestige as a leader in the innovation economy if it pursues more stringent antitrust standards in the tech field.
Consensus was found on federal privacy laws, while the GDPR model sparked debate
Across many of the panels, including those themed on AI, agreement was found on the need for the US to pass a federal privacy law. Industry leaders such as Melanie Tiano (Director of Federal Regulatory Affairs, T-Mobile) and Simone Hall Wood (Privacy and Public Policy Manager, Meta) noted the difficulty of navigating privacy standards that vary from state to state, which can slow innovation and discourage further investment. The importance of privacy was highlighted in the context of AI, including in the context of so-called “commercial surveillance” practices that are driven by algorithmic systems and currently under investigation by the FTC. Despite agreement around the importance of a unified approach to privacy in the US, there was no clear agreement on a model for data protection that would suit all interests. Tim Kurth (Chief Counsel, House Subcommittee on Innovation, Data and Commerce) cautioned that the EU’s GDPR and similar models like those employed at the state-level in California could overburden small businesses and raise barriers to entry in tech markets. Kurth did note that federal privacy laws were a Congressional priority for 2024, aligning with President Biden’s call for legislation in his Executive Order on AI. However, the lack of meaningful legislative progress has led US regulators such as the FTC to note its intention to move forward with rulemaking and enforcement under its present mandate and regardless of lawmaking efforts.
Among the glamour of high tech, connectivity and closing digital divides remained central
In the background of new product announcements, congressional policymakers and regulators from the National Telecommunications and Information Administration (NTIA) took the time to emphasise the ongoing importance of sound and consistent efforts in spectrum allocation and universal service. Phil Murphy (Senior Advisor, NTIA) praised the flexibility offered to global regulators to authorise the 6GHz band for unlicensed use agreed to at the recent World Radiocommunication Conference, which coordinated well with the Wi-Fi Alliance’s recent announcement of its official certification of Wi-Fi 7. However, representatives from the House Subcommittee on Communications and Technology stressed the basic importance of restoring the Federal Communications Commission’s spectrum auction authority which lapsed in March 2023 without congressional reapproval. A bipartisan group of Senators also took to the stage to champion ongoing work to close digital divides in the US, including through additional funding for the Affordable Connectivity Program which is otherwise likely to run out of funds by April 2024. In a showcase of cutting edge consumer technology, priority remained on achieving the policy and regulatory environment needed to ensure the full benefits of that innovation can be appreciated by all.
