Regulating Emerging Technologies: Opportunities and Challenges for Latin America

Abstract

The world is on the brink of an all-encompassing technological and social revolution moving with exponential velocity. Innovative technological trends such as Artificial Intelligence (AI), the Internet of Things (IoT), robotics, 3D printing, nanotechnology, augmented and virtual reality, emerge and converge, generating the Fourth Industrial Revolution (4IR). The 4IR exists in a social setting and not just as a disruptive business case. Societies need to design regulatory approaches that are not only human-led and human-centered, but also nature-led and nature-centered. Balance needs to be struck between societal and public interests, such as human dignity and identity, trust, nature preservation and climate change, and private sector interests, such as business disruptiveness and profits. As novel business models such as fintech and the sharing economy emerge, regulators are faced with a host of challenges that range between rethinking traditional regulatory models, coordination problems, regulatory silos, and the robustness of dated rules. This paper will highlight the unique regulatory challenges posed by emerging technologies in the 4IR: the unpredictable nature of business models that rely on emerging technologies; the importance of data ownership, control, privacy and security; and the AI conundrum. The paper then will proceed in defining and providing a set of 4 principles to guide the future of regulation in the 4IR: innovative and adaptive regulation, outcome-focused regulation, evidence-based regulation, and collaborative regulation.