“Fragmentation” in AI Regulation & Sentiment Creates Headwinds for Tech Trade

tech spotlight here. Lisa Martin tech and business analyst at Lisa and Martin Media is m So much urgency is evident now with AI rules, regulations, rogue agents that people don't even realize have gone rogue for a time. Tell me a little bitout w. What what are we seeing here? The trends. Hey, Nicole, it's great to be with you. Thanks for having me. So AI,ot shock. It's at another inflection point, right? We're moving from the systems that can answer questions for us, but now they can do things for us, right? More actions. They're also getting more and more access data and software and networks. We're seeing right now this confluence of a lot of things going on, which makes it even more interesting. Washington's moving. The president said that he's going to create arce and a. Those are concepts right now. We do know he met privately with Dario last night, who's one of strongest voices pushing for greater safeguards. But the AI czar authority, I'm very curious about this, Nicole, because it's still undefined. But the question remains, well, who establishes the baseline while still allowing U.S. companies to innovate, to compete? And there's a collision also happening rightw, autonomy, geopolitical competition. So we're scaling AI faster than what we're doing in terms establishing accountability for it. So that urgency rises to the top. And look, we know that these hyperscalers are spending a lot. There's a lot that's going on. In fact, I read that Dario andIe going to be going to the white House conversation about AI, which is interesting because they had a little bit of differing views, We had Dario Amodei on one side and Sam Altman and E M and then on the other side, which one? Jensen Wong was on the other side talking about the AI agents l that. So at this point now, you know, does the regulation help? You know, a lot of folks, for regulation on Bitcoin. The more they get, it's easier for them to then navigate.hey know what they can and cannot do. Does that actually help in some way? What k regulatioo you expect or does it slow the innovation or both? That's been my question about does it slow the integration? I think if it's regulated poorly, then it could slow innovation. But my biggest concern right now is this fragmentation. Because if we have different countries, they're all goi govern AI differently. And I don't think one that's a problem. And two, there's much w do about it. I think the problem is for, for the theopic's, theopening, the e those requirements don't work together. And these AI companies then get forced into this, this patchwork to start engineering around different regulations because that, like I said, that's going to i the speed of regulation. At the same time, I don't think it'sace book can happen. So I say,hat about major AI producing countries working together? Iste compatible like a baseline minimum outcomes, that common denominator around the things like security incident reportingt we're seeing more of. Then once that common denominator is the let the companies across countries compete on how they meet those outcomes What did you think today of Nvidia's news a open am that they were working on? You know, and Jensen Wong saying this is a solvableroblem? It seemed like a mountain last week. And suddenly it's, you know, and also OpenAI saying, look, we're going to shut down the lab of the or, you know, sort of pull in advanced AI agents. How come it's so so this And last week it felt like it was the end of humanity.ight. And we even have Bill gates commenting on that yesterday on Meet the Press. My concern is the narrative. I mentioned fragmentation and regulations. The narrative is incredibly fragmented. We have some on one side, Jensen talking about the fear mongering. They were allatn Valley a couple of weeks ago. We've got them saying we're going to keep the foot pedal to the metal, the administration saying the same thing. Then we have some who are really, really close to the actual A models, the anthropic, Sam Altman's, for example, saying,hd pause. What concerns me most is that that nve, not only is it fragmented, the fear mongering among citizens which have to have a stake in the game here is huge. No won people don't trust this. And trust is currency tat a enterprise has to earn, but they also have to maintain it. And regulatio and clarity can go a long way towards achieving just that.h. What about global coordination on the AI ti, we had President XI Jinping here. The two presidents are due to meet again in November. Any sign of that? Is that even needed or would you trust that. Oh that's such a good question. Would I trust it? I think, you know, right now I was looking at the reports that came out in the last few days about that meeting at the white House, and there were words that were not rs early stage there shouldn't be, because what we're in right now, , at least, right? We've got the US lea in private investment. We're leaving here and computing infrastructure with media production of those leading models. So I mentioned, I think OpenAI, aopic, Google, we see China leading in areas as well resea publications, citations, patent grants and industrialotics with their Alibaba's Deep Sea, ByteDance and others. Underneath it all is the semiconductor race. And it is just that because none of this skills without compute. And that's why we'reking at Nvidia, AMD, Huawei, they're so strategically important. So I thin we want to look at right now is watch what happens from that geopolitical perspectd how quickly. But who from a company perspective can t capability into adoption. Adoption has to go to scale, and then scale has to become ROI without adoption or semiconductors, none of that matters. You know, is the AI story a dangerous playground for investors? I know you don't do stock recommend, but ween the hyperscalers spending over 800 billion. That's going int trillions next year. You have bonds being sold. You have compa investing into AI related groups, billions of dollars. What are your thoughts on investing in AI overall on where it's headed? Is the frontier real? Is the advancement real for the years to come? You know, what I am interested in is AI, the companies themselves. I mentioned the fragmented narrative Jen-hsun Huang said the other day. And I agree engineering rather safety has to beineered into t AI and these companies should be the investors should be looking at what are these AI companies doing as that first line o defense. But then I think, let's let's clear this and look at our irs, the hig risk systems, because the AI companies shouldn't be the only on creating their own homework. And I think that's into play that investors should be watching. We know some of the leaders are pro that I think what not just the investors, should be looking at. Or race is for enterprise buyers that independent tes, that credibility, that clarity, that creates confidence, which is critical for investors. I surface and lets them knowe these are the risks we know of today. Here's what we're doingtr the public who's very anti AI, it creates accountability on the part of those companies. And I think that's the first stepto earning trust. As I said, I think what what investors can't do is just, hey, don't just well, they're saying, don't just tell me to trust your technology, give me a reason to trust it because it's been verified. Yeah. Understood. Well, we've seen tech at record highs, so people are believers. Last week we saw the Nasdaq hitting records a couple of ti Lisa Martin, great to see you. Tech and business analyst Lisa Martin.