While the porn industry is busy dealing with draconian age verification laws, the AI industry faces its own problems under what has been called KYC or Know Your Customer requirements. This is something that OnlyFans content creators have learned about as well.

In short, the law says you can’t just assume the person you are doing business with, is who they say they are.  As the business owner, you are required to put some real effort into getting to know your customers.

This time, the regulation is in the name of AI (artificial intelligence) and, more specifically, to slow down China from getting an edge over the US by using US technology.

You may ask yourself why you care about KYC rules if you don’t use AI, but these same regulations also affect the adult industry, as well as social media and platforms like OnlyFans.

Carl Szabo, the general counsel for NetChoice, a prominent tech industry trade association, has raised concerns about the Biden administration’s latest executive order. Szabo claims the order, which mandates U.S. cloud companies to report on the usage of their resources by foreign entities for training large language models, is not only “illegal” but also potentially damaging to international tech collaboration.

The directive, part of a broader initiative to regulate AI development, has been met with resistance from various corners of the tech industry. Szabo argues that this move to enforce industry reporting requirements could hinder the global cooperative efforts essential for advancing AI technology.

“Imposing such stringent regulations on U.S. cloud companies risks isolating them from the global stage,” Szabo stated. “This could not only stunt the growth and innovation in AI but also undermine America’s position as a leader in this critical tech sector.”

The executive order, seen as a step to bolster transparency and accountability in AI development, particularly in relation to large language models, has sparked a debate over its implications for privacy, security, and international tech diplomacy.

NetChoice, representing a swath of tech firms, asserts that the order could have unintended consequences, deterring international entities from utilizing U.S. cloud resources for AI development. This, they argue, could lead to a fragmentation of efforts in AI research and development, impeding progress in a field that thrives on global input and diversity of data.

The controversy surrounding the executive order underscores the delicate balance governments must strike in regulating emerging technologies like AI, where rapid innovation often outpaces policy development. As the debate continues, the tech industry and policymakers alike are grappling with how to foster innovation while ensuring responsible use of AI technologies.