AI needs more regulation, not less

In the early 1970s, the fledgling credit card industry routinely and shortsightedly held cardholders liable for fraudulent transactions, even if their cards had been lost or stolen. In response, Congress passed the 1974 Fair Credit Billing Act to limit cardholder liability. This protection increased public trust in the new payment system and spurred growth and innovation. Because they could no longer just pass fraud losses on to cardholders, payment networks devised one of the first commercial applications of neural networks to detect out-of-pattern card usage and reduce their fraud losses. Smart regulation, like the above example, that gets out in front of emerging technology can protect consumers and drive innovation.