kaal:claim:4796714-019

Mandatory AI use reporting fails as a transparency mechanism because it assumes accurate and complete disclosure, while regulated entities have incentives to underreport or misreport in order to avoid scrutiny and regulatory burdens.

However, this approach assumes that entities will accurately and fully disclose their AI applications and potential issues. There may be incentives for underreporting or misreporting to avoid scrutiny or regulatory burdens, which could undermine the effectiveness of the regulations.

Wulf A. Kaal, AI Governance (2024), Challenges, p. 30
https://ssrn.com/abstract=4796714 · source PDF

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

• applies to self reporting mandates such as the White House AI reporting proposals
• holds where disclosure is unverified

failuresupport: arguedfailure: self reporting incentive failurefamily: disclosure-ineffectivenessdisclosurerisk-and-incentives

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