# kaal:claim:4941807-011

**Claim.** Although the move toward more explainable, private, and transparent AI is desirable, Kaal argues these regulations paradoxically consolidate power within large technology companies, because only they hold the data resources and infrastructure needed to comply and still ship effective AI.

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

**Holds when.**

- where compliance requires vast data resources and sophisticated infrastructure
- where smaller developers cannot absorb compliance cost

**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 Via Web3 Reputation System* (2024), ORIGIN OF AI, page 8

**Cite as.** Wulf A. Kaal, AI Governance Via Web3 Reputation System (2024). SSRN: https://ssrn.com/abstract=4941807

**Verify.** sha256 of source PDF `ab66c1e99a88da1fa36b0c6b536df5184231fe6aa427f3dd53287a4e0ac79853` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202024%20-%20AI%20Governance%20Via%20Web3%20Reputation%20System.pdf

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

**Topics.** regulatory-failure, economics, governance-design, ai-and-agents

**Keywords.** regulatory-capture, big-tech, gdpr, competition, ai-governance

**Related claims.**

- restates: https://wulfkaal.github.io/claims/4796714-008

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