Can our Regulatory Policies be as Smart as our Technology?

Once again, I arrived at the annual Consumer Electronics Show (CES) in Las Vegas this week excited to see the latest ways in which technology promises to change my life. As I walked the miles (yes miles) of exhibit floor space, I realized that there is not an aspect of our life which will not be impacted by evolving - and increasingly smart - technologies. It really is an amazing experience.  

What also struck me as I walked through exhibits demonstrating the latest in everything from drones to automated vehicles that sense your mood to robotic coffee makers was how little regulatory guidance there is around many of these emerging technologies (outside of the obvious roles of the FCC and FTC). Whenever anything can have such a big impact on how we live our lives, it will eventually become a focal point for policymakers. As they try to figure out what may need to be regulated and how, policymakers will have to find the right balance between no regulation, self-regulation and smart regulation. It won’t be easy. 

The speed with which technology is evolving is making the job of policymakers challenging on several fronts. First of all, it will be difficult to define a regulatory approach that will keep up with the technologies and their ever changing impact on business, society and culture. They will also have to balance the potential need for regulation with a desire not to implement a regulatory approach that might impede the speed and ease of innovation that has marked this era of rapid technological evolution, which some are calling “the 4th industrial revolution.”  Finally, they have to find the right balance between local, federal and global regulatory policies. As technology continues to make the world smaller, a consistent regulatory approach is important and will require tradeoffs from policymakers at all levels. 

The policy approach that appears to be emerging in the U.S. is one of incremental regulatory change. Where there is an urgent public safety or national security need, policymakers will respond with targeted legislation or regulation. Outside of that realm, the incremental approach has involved information gathering through hearings, studies, Congressional caucuses (e.g., Internet of Things and Sharing Economy caucuses) and other means. The result of this information gathering is typically some type of report or policy guidelines (such as the recent Department of Transportation/NHTSA Guidelines for Highly Automated Vehicles), which puts the onus on the industry to come up with solutions for key policy issues. In addition, industry and government collaboration forums - like the Drone Advisory Committee - help facilitate needed dialogue on policy, regulation and innovation. As the policy needs and objectives become clearer it will allow for a smarter regulatory approach to evolve where needed. 

Creating some uncertainty about the future approach to an emerging technology regulatory policy is the arrival of the new Trump administration on January 20th. President-elect Trump’s relationship with the technology sector has been bumpy at best and it is not clear that they are on the same page on many issues (e.g. encryption, H1B visas). How that relationship translates into the new administration’s approach to regulatory policies around emerging technologies is difficult to predict. The Trump transition team and GOP Congressional leadership have promised a lighter regulatory touch, but they have also highlighted their concerns about encryption and cybersecurity. As with many other aspects of this new administration, we will just have to take a wait and see approach with regard to their policies around emerging technology.

From my perspective, the incremental approach taken to date in the U.S. (recent FCC rules aside) has been the right approach and I believe that that approach will continue. Policymakers at all levels are realizing how much catching up they have to do around the impact of emerging technologies and, for the most part, have not jumped the gun on imposing unnecessary regulations. That being said, there are some topics - such as drones - where additional regulatory clarity would be helpful in order for the U.S. industry to continue to evolve at the same pace as countries that have more clearly defined and permissive drone policies - such as Poland.

While a lot of CES is about “wow factor” and getting the word out about the “next great thing,” it is also about informing the public - and policymakers - that the industry understands and is addressing concerns around issues such as privacy and security. If the industry continues to take a proactive approach to addressing these types of policy concerns - and viewing their solutions as competitive differentiators - it will bode well for the adoption of a smart regulatory approach. It will also bode well for many more years of me getting to see some very cool - and ever smarter - technology being unveiled in Vegas each January.