Regulating Generative Artificial Intelligence: Identifying the Need for Consumer Protection

In the technology ecosystem, the emergence of Generative Artificial Intelligence (Gen AI) has sparked both excitement and anxiety. While its potential to revolutionize various industries is undeniable, concerns about its ethical implications and potential abuses have come to the fore.

Calls to regulate this technology have been heard around the world. The UK in particular has taken a balancing act of innovation, with the government expecting responses from various industry regulators at the end of the month detailing their approach to AI.

A recent survey by KPMG in the UK highlighted consumers’ willingness to regulate Gen AI, with a large majority of respondents expressing a desire to act quickly. However, the study also found that there are other ways to ensure consumers feel safe using this technology and feel optimistic about the future of generative AI.

Ian West

Technology Director at KPMG UK.

Overwhelming support for regulation

Generation AI became popular among consumers in 2022 when several user-friendly text-based AI systems were made publicly available. Even though the technology is still in its infancy, consumers express an urgent need for regulation of this technology. The survey found that people are eager to regulate generative artificial intelligence (Gen AI) technology, with over half (53%) saying regulation should be introduced as soon as possible and almost all (96%) believing that Gen AI regulation either very or quite important.

Some are happy to take a more measured approach; another 18% would like Gen AI regulations to be implemented within the next six months, and 14% would like it to happen within a year. However, since new regulations such as the EU Artificial Intelligence Act won’t come into force for at least another twelve months, they will have to wait.

Safety considerations

A significant number of respondents, almost a quarter (24%), expressed reservations about the safety of using generative AI (Gen AI). An additional 4% said they didn’t feel safe using it at all. However, when asked about measures that would strengthen their sense of protection, over half (53%) of participants emphasized the importance of increased regulation.

The education of Gen AI creators also proved to be a key factor in strengthening the sense of security among users. This may include the use of comprehensive user manuals that clearly explain the tools’ capabilities and limitations. Additionally, in-product warnings and alerts within the Gen AI tool itself can also be an effective way to inform users about potential risks or ethical considerations associated with specific activities or inputs.

Despite these concerns, a significant 13% of respondents supported the complete removal of Generation AI due to concerns about potential threats. This highlights the need for Gen AI developers to take proactive steps to educate users about safe and responsible use, build trust, and address security concerns to ensure widespread adoption of this revolutionary technology.

Basic security issues

When considering the potential impact of generative artificial intelligence (gen AI), respondents expressed several key concerns. The greatest concern was the potential use of this tool for criminal purposes – 52% of respondents considered this to be the main problem. This was closely followed by the misappropriation of information entered into Gen AI models, such as personal photos, health data and personal information, which was of concern to 51% of respondents.

Moreover, with more than 2 billion voters expected to vote in 50 countries this year, almost half (46%) of people expressed concern about the spread of misinformation and misinformation via generational AI. The use of this technology to create fake politicians, as evidenced by incidents involving London Mayor Sadiq Khan and Labor leader Keir Starmer, underscores the validity of these concerns.

Balancing risks and benefits

Despite concerns about generative AI, it’s encouraging to see that many consumers are aware of the value this technology can bring, as over a third (37%) of respondents said its benefits outweigh its risks. Moreover, more than three-quarters (78%) were very or somewhat optimistic about the impact of generative AI on society.

It is important to allay any fears people have about generative AI to encourage its use. As long as people think that AI will take their jobs or that there is a risk of bias in decision-making, etc., encouraging people to adopt this technology and make the most of it will be an impossible task. We need to talk more about opportunities that ensure that AI is not seen as a distant piece of black box technology, competing with or replacing humans, but reframe it as “your new AI collaborator” that can support and help humans in achieving their goals.

This new data only underscores the urgent need for regulation of generational AI to address public concerns and ensure the responsible development and deployment of this revolutionary technology. Fortunately, governments and regulators around the world, including the UK, are working to put in place appropriate barriers to generational AI so that people can use this new technology. However, our data suggests that people want the companies that create these models to make more of an effort to teach the public how to use them safely.

Generative AI companies should use this as an opportunity to not only build trust with their customers, but also help them achieve better results when using the tools. As Generation AI continues to shape our world, collaboration between governments, regulators and Generation AI businesses is critical to unlocking its benefits while mitigating potential risks.

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