Caution Needed in Regulating AI Use in Manufacturing
Randy Wolken, President & CEO

Artificial Intelligence (AI) continues to have a positive impact on manufacturers as the technology works to enhance the industry. Manufacturers are using AI on the shop floor and throughout  their operations. On February 12th, The National Association of Manufacturers (NAM) reported on the effect of AI at a hearing of the House Subcommittee on Commerce, Manufacturing, and Trade. In their report they cited the essential data that they observed. The diverse use cases of AI in manufacturing suggest the need for a cautious regulatory approach. It must support innovation and U.S. leadership in AI while providing context-specific, risk-based, right-sized rules for manufacturers.

It’s vital to distinguish between industrial and consumer-facing AI, as the two are very different. Industrial AI uses controlled data from the manufacturing environment to help manufacturers create business value. This results in better products, more efficient operations, and a better prepared workforce. AI enables companies, from startups to industrial giants, to thrive in this new era of American manufacturing.

Regulation of AI, especially for industrial uses, must be undertaken with a light touch. Policymakers should review existing laws and regulations before enacting new ones because most uses of AI correspond to tasks and objectives that the industry has faced for a long time and may already have been addressed. In its testimony, NAM referred to the AI report they released last May: “Working Smarter: How Manufacturers Are Using Artificial Intelligence.”

Congress should also advance industrial AI by prioritizing strong rules for digital trade, especially by including strong source code and algorithm protections. In doing so, the U.S. can build upon the success of its previous efforts to protect intellectual property.

The importance of AI and its ability to transform many aspects of manufacturers’ operations is becoming clearer. The right federal policies for manufacturers in the U.S. can help them devise new and exciting ways to leverage AI to lead, innovate, and stay ahead of their global competitors.