# kaal:claim:4796714-008

**Claim.** Strict privacy and transparency regulation produces a perverse result: because only large technology companies hold the data resources and infrastructure needed to comply and still build effective AI, such regulation consolidates rather than disperses their power.

**Type.** failure  **Support.** argued

**Holds when.**

- applies to stringent data privacy regimes such as GDPR
- holds where compliance cost scales with organizational resources

**Source quote.**

> Furthermore, while the move towards more explainable, private, and transparent AI is commendable, these regulations can paradoxically consolidate power within large tech companies.

**From.** Wulf A. Kaal, *AI Governance* (2024), Origin of AI, page 9

**Cite as.** Wulf A. Kaal, AI Governance (2024). SSRN: https://ssrn.com/abstract=4796714

**Verify.** sha256 of source PDF `59fa63bae179e8f9b6b8efbdf90cee28400276512a1b04f9f579a48641305c93` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202024%20-%20AI%20Governance.pdf

**Failure mode.** compliance cost consolidation  (family: compliance-cost-and-barrier-to-entry)

**Topics.** regulatory-failure, economics, consensus-and-security

**Keywords.** gdpr, regulatory-capture, market-concentration, privacy-regulation, competition

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/4941807-011
- extended_by: https://wulfkaal.github.io/claims/4941807-010

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.