Tools & Platforms
Ted Cruz bill would let Big Tech go wild with AI experiments for 10 years
In the one-pager, Cruz noted that “most US rules and regulations do not squarely apply to emerging technologies like Al.” So “rather than force Al developers to design inferior products just to comply with outdated Federal rules, our regulations should become more flexible,” Cruz argued.
Therrier noted that once regulations are passed, they’re rarely updated and backed Cruz’s logic that AI firms may need support to override old rules that could restrict AI innovation. Consider the “many new applications in healthcare, transportation, and financial services,” Therrier said, which “could offer the public important new life-enriching service” unless “archaic rules” are relied on to “block those benefits by standing in the way of marketplace experimentation.”
“When red tape grows without constraint and becomes untethered from modern marketplace realities, it can undermine innovation and investment, undermine entrepreneurship and competition, raise costs to consumers, limit worker opportunities, and undermine long-term economic growth,” Therrier wrote.
But Therrier acknowledged that Cruz seems particularly focused on propping up a national framework to “address the rapid proliferation of AI legislative proposals happening across the nation,” noting that over 1,000 AI-related bills were introduced in the first half of this year.
Netchoice similarly celebrated the bill’s “innovation-first approach,” claiming “the SANDBOX Act strikes an important balance” between “giving AI developers room to experiment” and “preserving necessary safeguards.”
To critics, the bill’s potential to constrict new safeguards remains a primary concern. Steinhauser, of the Alliance for Secure AI, suggested that critics may get answers to their biggest questions about how well the law would work to protect public safety “in the coming days.”
His group noted that just during this summer alone, “multiple companies have come under bipartisan fire for refusing to take Americans’ safety seriously and institute proper guardrails on their AI systems, leading to avoidable tragedies.” They cited Meta allowing chatbots to be creepy to kids and OpenAI rushing to make changes after a child died after using ChatGPT to research a suicide.
Clorox’s lawsuit cites transcripts of help desk calls as evidence of Cognizant’s negligence, but what if those calls been captured, transcribed, and analyzed to send real-time alerts to Clorox management? Could the problem behavior have been discovered early enough to thwart the breach?
Here, generative AI could have a significant impact, as it delivers the capability to capture information from a wide range of communication channels — potentially actions as well via video — and analyze for deviations from what a company has been contracted to deliver. This could deliver near-real-time alerts regarding problematic behavior in a way that could spur a rethinking of the SLA as it is currently practiced.
“This is flipping the whole idea of SLA,” said Kevin Hall, CIO for the Westconsin Credit Union, which has 129,000 members throughout Wisconsin and Minnesota. “You can now have quality of service rather than just performance metrics.”
AI provides a technique to extract value from this untapped resource, said Ben Kus, chief technology officer at Box. To use the widely scattered data properly requires preparation, organization, and interpretation to make sure it is applied accurately, Kus said.
Box Extract uses reasoning to dig deep and extract relevant information. The AI technology ingests the data, reasons and extracts context, matches patterns, reorganizes the information by placing it in fields, and then draws correlations from the new structure. In a way, it restructures unstructured data with smarter analysis by AI.
“Unstructured data is cool again. All of a sudden it’s not just about making it available in the cloud, securing it, or collaboration, but it’s about doing all that and AI,” Kus said.
Despite short-term stock pressure, CoreWeave remains positioned to meet overwhelming AI compute demand, supporting long-term optimism in the sector.
Nvidia-backed CoreWeave says peak AI investment is still far off, as demand for compute capacity from OpenAI, hyperscalers, enterprises, and governments continues to surge. CEO Michael Intrator said CoreWeave is rapidly scaling to meet soaring global GPU demand.
Since the IPO lockup expiry, insider stock sales have added to the downward pressure.
Intrator defended the company’s strategy, describing debt as the most efficient way to fund growth. Analysts warn CoreWeave shares could stay volatile, though strong AI infrastructure demand supports long-term optimism.
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