So there is a lot of huff about AI companies pushing AI is dangerous, we need to regulate it, it will kill all humans, etc. why are they actually pushing AI is dangerous, going to kill all, etc. They want regulation. Why do they want regulation? This highly controls the market, and keeps new companies from spinning up easily. Basically it controls competition all in the name of “safety”. Who writes the regulations and lobbies for it? The AI companies that are pushing for it currently So in short, it’s a cartel. Like it’s about money at the end of the day. And this isn’t even the first time something like this has happened. We seen this a few times in the past. Tobacco: Philip Morris (maker of Marlboro) broke ranks with the rest of the tobacco industry and publicly supported the Family Smoking Prevention and Tobacco Control Act of 2009. They push it is a public health risk. The act banned almost all cigarette marketing, sponsorships, and point-of-sale displays. While this looked like an attack on smoking, it effectively froze market share in place. Philip Morris held roughly 50% of the US market; with advertising banned, new or smaller competitors could not market cheaper brands to peel away smokers. The law also subjected new tobacco products to costly pre-market approvals, shutting the door on low-cost upstarts. Similar thing happen with vaping. Note I’m not saying people should smoke and it wasn’t a health problem. But when major companies who make such things push it. It normally isn’t in the best interest of everyone. It is to protect their profits. Other examples is like Baby Formula. Infant formula manufacturers supported strict safety and nutritional regulations from the FDA. Sounds good, but the extreme regulatory red tape and protectionist import rules meant European formulas (even those meeting equivalent or superior European health standards) were effectively banned from store shelves in the US. By setting the domestic compliance bar so high, the US created a government-protected oligopoly dominated by just four companies (Abbott, Mead Johnson, Nestlé, and Perrigo). When Abbott’s single Sturgis plant shut down in 2022 due to contamination, the market broke because no outside competitors were legally allowed to sell infant formula. Boeing is also an example. Legacy aircraft manufacturers championed extensive, hyper-complex FAA safety certification procedures, arguing passenger flight is too dangerous to allow anyone without rigorous federal safety clearances into the airspace. Sounds good but, the cost to certify a single commercial passenger airframe runs into billions of dollars. Because the regulatory burden grew too massive for the FAA to oversee directly, the government granted Boeing the authority to self-certify much of its own safety compliance (Organization Designation Authorization). This dual reality made it impossible for domestic aerospace startups to emerge while simultaneously giving the incumbent a rubber stamp over its own safety shortcuts (which contributed to the 737 MAX crashes). In economics, this dynamic is known as “Raising Rivals Costs” or a “Bootleggers and Baptists” coalition : A genuine or perceived public hazard emerges (youth vaping, lethal smoking, plane crashes, AI risks). Moral advocates demand regulation (“The Baptists”). The dominant corporate player (“The Bootlegger”) steps in and agrees, volunteering to help draft the rules. The resulting rules impose fixed compliance costs that a multi-billion-dollar enterprise treats as a standard line item, but which completely bankrupt small challengers. This making it completely impossible for new companies to really show up, and it makes it where there can be fixed pricing similar to how streaming services are doing it. Not in a “illegal” way. But note how we went from $7 to like $20 for the same thing. It’s because it is nearly impossible for new companies to spin up. Should there be regulation? But a lot of the regulation is already there. Like Copyright and what not. Should there be regulation against them making a product to be used as a weapon or the like? Yes. But it’s funny how we see the same play book coming up time and time and time again. And what gets burry in needed regulation is highly anti-competition stuff. Again, in short, it’s a cartel. submitted by /u/crua9
Originally posted by u/crua9 on r/ArtificialInteligence
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