WEBVTT - Hunter Biden Plea Deal and AI Regulation 0:00:02.080 --> 0:00:04.000 This is Bloomberg Law. 0:00:04.080 --> 0:00:08.200 Are plaintiff's leries involved in a kind of competition in Congress? 0:00:08.240 --> 0:00:10.320 Force a judicial code on the justices? 0:00:10.360 --> 0:00:13.640 Interviews with prominent attorneys in Bloomberg Legal experts. 0:00:13.720 --> 0:00:16.680 My guest is former federal prosecutor Robert Mintz. Joining me 0:00:16.760 --> 0:00:18.919 is Bloomberg Law reporter Kyle Janner. 0:00:18.720 --> 0:00:22.040 And analysis of important legal issues, cases and headlines. 0:00:22.239 --> 0:00:25.480 Is it unusual a grand jury like this to suspect 0:00:25.480 --> 0:00:27.840 people aren't telling the truth? One of the first times 0:00:27.840 --> 0:00:30.360 the Justice Department has called for the breakup of a 0:00:30.440 --> 0:00:31.200 major company. 0:00:31.320 --> 0:00:34.960 Bloomberg Law with June Grasso from Bloomberg Radio. 0:00:37.920 --> 0:00:40.920 Welcome to Bloomberg Law on Bloomberg Radio. I'm Madison Mills 0:00:40.960 --> 0:00:45.280 in for June Grasso. This week. Two big headlines today, 0:00:45.479 --> 0:00:47.960 both for the top contenders so far in the twenty 0:00:48.000 --> 0:00:51.279 twenty four election. We've got former President Trump. He has 0:00:51.320 --> 0:00:55.400 a new trial date. Meanwhile, President Biden's son reaching a 0:00:55.480 --> 0:00:58.480 deal on US tax crimes, just as the President himself 0:00:58.520 --> 0:01:01.600 heads to San Francisco for meeting with experts in the 0:01:01.640 --> 0:01:04.000 AI space. We're going to cover all of that, but 0:01:04.080 --> 0:01:06.520 first let's start with the Hunter Biden news. Because the 0:01:06.520 --> 0:01:10.480 President's son will plead guilty to two misdemeanor tax crimes 0:01:10.520 --> 0:01:13.720 in an effort to avoid a separate gun charge. Joining 0:01:13.800 --> 0:01:16.319 us to discuss the news is Zoe Tellman, Bloomberg News 0:01:16.440 --> 0:01:19.399 legal reporter, and Bloomberg's Kaylee Lines on the phone with 0:01:19.480 --> 0:01:22.280 us from DC. Kaylee, I want to start off with you. 0:01:22.800 --> 0:01:25.000 Just walk me through what we know about this deal 0:01:25.120 --> 0:01:26.040 for Hunter Biden. 0:01:26.600 --> 0:01:29.440 Well, it was revealed in a filing by the district 0:01:29.440 --> 0:01:34.160 attorney in Delaware earlier today that there is a deal 0:01:34.240 --> 0:01:37.400 that has been struck with prosecutors. The Hunter Biden, the 0:01:37.400 --> 0:01:40.160 President's son, is going to plead guilty, as you said, 0:01:40.200 --> 0:01:43.319 to these two misdemeanor tax charges basically related to charges 0:01:43.360 --> 0:01:46.959 that he didn't pay taxes on time, and in doing so, 0:01:47.480 --> 0:01:51.080 will likely avoid prosecution on a gun related charge because 0:01:51.080 --> 0:01:54.920 that is going to go to what they call a 0:01:54.960 --> 0:01:58.600 diversion program. So as long as he complies with certain 0:01:58.640 --> 0:02:02.040 conditions for a period of time, that will be dismissed. 0:02:02.040 --> 0:02:05.280 In that charge in particular, is about lying about his 0:02:05.400 --> 0:02:08.560 drug use when purchasing a handgun several years ago. So 0:02:08.600 --> 0:02:11.160 that's what we know about the agreement. It seems likely 0:02:11.720 --> 0:02:14.080 that he would avoid prison time under this deal. And 0:02:14.120 --> 0:02:16.680 of course you aren't hearing much about the White House 0:02:17.400 --> 0:02:19.280 response to it, other than a statement that was put 0:02:19.280 --> 0:02:21.200 out by a spokesperson saying that the President and the 0:02:21.200 --> 0:02:24.639 First Lady love their son and support him. You are 0:02:24.639 --> 0:02:26.320 hearing a lot though, on the other side of the aisle, 0:02:26.400 --> 0:02:29.280 with Republicans like House Speaker Kevin McCarthy calling it a 0:02:29.280 --> 0:02:32.200 sweetheart deal, as has the Oversight Committee chairman in the House, 0:02:32.720 --> 0:02:35.480 Congressman James Comer, talking about a sweetheart deal and saying 0:02:35.480 --> 0:02:37.720 that Congress is going to continue to pursue his own 0:02:37.760 --> 0:02:40.800 investigation into Hunter Biden and the Biden family's dealings. 0:02:40.960 --> 0:02:42.760 And we'll talk a little bit more, Kayley, about the 0:02:42.880 --> 0:02:45.720 political ramifications here, but I want to go to you, Zoe, 0:02:46.440 --> 0:02:49.560 talk to me in terms of the legal context here. 0:02:50.080 --> 0:02:53.600 I guess, how weird is it for defendants who enter 0:02:53.639 --> 0:02:57.639 into these agreements to plead guilty. Did that seem abnormal 0:02:57.680 --> 0:02:58.760 to you? 0:02:58.800 --> 0:02:59.000 No? 0:02:59.040 --> 0:03:02.200 I mean, if a defend and is willing to accept 0:03:02.200 --> 0:03:06.000 responsibility for the crimes that they're under investigation for, the 0:03:06.040 --> 0:03:10.360 government is certainly open to entering into agreements, they have 0:03:10.440 --> 0:03:14.720 discretion to also you know, sign off on you know, 0:03:15.000 --> 0:03:19.120 these diversion programs, especially for first time offenders. There are 0:03:19.160 --> 0:03:22.560 certain types of crimes that aren't eligible, but the offense 0:03:22.600 --> 0:03:26.520 that Hunter Biden has been charged with, this gun offense, 0:03:27.000 --> 0:03:31.000 doesn't fall under that category. So the idea is by 0:03:31.280 --> 0:03:36.120 admitting responsibility but not pleading guilty, if he can stay 0:03:36.280 --> 0:03:39.680 you know, drug free, not possess any guns, you know, 0:03:39.760 --> 0:03:43.320 not commit other crimes, comply with other conditions. After a 0:03:43.360 --> 0:03:45.640 period of time, the government agrees it's not going to 0:03:45.640 --> 0:03:48.960 prosecute that particular offense. And we've been told, although it's 0:03:48.960 --> 0:03:51.640 not public yet, that the plea deal on the tax 0:03:51.680 --> 0:03:56.320 crimes will include a recommendation from prosecutors of twenty four 0:03:56.320 --> 0:04:01.200 months of probation, so he seems to be in a 0:04:01.240 --> 0:04:04.800 situation where he will not serve any jail time. Of course, 0:04:04.840 --> 0:04:08.040 it's up to the judge. Those tax crimes, although they're misdemeanors, 0:04:08.080 --> 0:04:10.640 they do carry up to a year in prison, so 0:04:10.720 --> 0:04:13.960 the judge could decide to not abide by that probation recommendation. 0:04:14.520 --> 0:04:16.440 But they're going to give it a lot of weight. So, 0:04:16.720 --> 0:04:19.360 you know, it seems like legally he is coming out 0:04:19.360 --> 0:04:23.320 of this with not so much exposure, you know, publicly 0:04:23.520 --> 0:04:26.760 pr wise, politically it's a different story. 0:04:27.360 --> 0:04:31.120 So Kaylee, come back in here. I'm curious what's next 0:04:31.240 --> 0:04:34.960 for Hunter Biden because there's also the laptop situation that 0:04:35.000 --> 0:04:38.400 you mentioned earlier as well. What would be next for 0:04:38.520 --> 0:04:40.520 him and what else is there for us to kind 0:04:40.520 --> 0:04:44.279 of learn and figure out still that we might get 0:04:44.279 --> 0:04:46.159 more information about in the coming weeks. 0:04:46.400 --> 0:04:48.240 Well, of course, what's next for him in this case 0:04:48.240 --> 0:04:49.680 is he's going to have to go to the federal 0:04:49.760 --> 0:04:52.200 court in Delaware and actually enter this police so we 0:04:52.240 --> 0:04:54.840 will have to see him appear there, and then, as 0:04:54.880 --> 0:04:56.599 Zoe was alluding to, the judge is going to have 0:04:56.640 --> 0:04:58.960 to make some decisions about how all of this is 0:04:59.120 --> 0:05:02.160 going down. But I would say there also could potentially 0:05:02.160 --> 0:05:04.400 be more coming down the pike for him. Here in Washington, 0:05:04.440 --> 0:05:08.000 I mentioned Congressman James Comer, who heads up the Oversight Committee, 0:05:08.040 --> 0:05:11.960 already had ongoing investigations into Hunter Biden, into the wider 0:05:12.400 --> 0:05:15.120 Biden family, and he really doubled down today, committed to 0:05:15.279 --> 0:05:18.240 continuing that effort despite what we're seeing come out of 0:05:18.640 --> 0:05:22.960 the Justice Department today, that those efforts are going to continue. 0:05:23.000 --> 0:05:24.960 So this is not to say that by inking this 0:05:25.040 --> 0:05:29.000 deal with prosecutors Hunter Biden has now removed all of 0:05:29.040 --> 0:05:33.719 his potential legal or investigative woes that he was facing. 0:05:33.720 --> 0:05:35.520 If anything, this may just add more fuel to the 0:05:35.520 --> 0:05:39.680 fire for Republicans to really double down. 0:05:38.160 --> 0:05:39.320 On those efforts. 0:05:39.320 --> 0:05:41.680 And this is something that his father, President Joe Biden, 0:05:42.000 --> 0:05:44.400 is going to have to contend with on the campaign 0:05:44.480 --> 0:05:47.800 trail you mentioned, Maddie. He's out in California trying to 0:05:47.839 --> 0:05:51.039 raise money for his campaign, meeting with donors, and this 0:05:51.120 --> 0:05:54.840 is definitely just a very difficult issue for him to navigate, 0:05:54.880 --> 0:05:56.440 as he doesn't want to appear that he has the 0:05:56.480 --> 0:05:59.320 thumb on the scale at the Justice Department in any 0:05:59.320 --> 0:06:01.279 way on his side case or of course, in the 0:06:01.320 --> 0:06:04.960 case the Justice Department has brought against his likely opponent 0:06:05.000 --> 0:06:08.320 in the twenty twenty four general election, former President Donald Trump. 0:06:08.360 --> 0:06:10.279 We have to consider that factor here as well. 0:06:10.600 --> 0:06:12.520 And Kelly's sticking with you on that for a second. 0:06:12.640 --> 0:06:15.680 Have we heard yet how the Biden camp is going 0:06:15.720 --> 0:06:19.640 to strategize to kind of distance themselves from the Republican 0:06:19.720 --> 0:06:23.040 narrative of Biden having his finger on the Justice Department. 0:06:22.839 --> 0:06:26.479 Really by not commenting they will not engage in conversation 0:06:26.680 --> 0:06:28.960 around this, whether you're talking about, you know, the White 0:06:28.960 --> 0:06:31.680 House Press Secretary saying no comment, or the President himself 0:06:31.720 --> 0:06:33.160 saying he's not going to comment on it. They are 0:06:33.279 --> 0:06:37.480 really trying to stay at arm's length, likely to avoid 0:06:37.480 --> 0:06:40.440 that perception that this is in the case against former 0:06:40.480 --> 0:06:43.440 President Donald Trump politically motivated, or that you know, the 0:06:43.440 --> 0:06:45.920 president is trying to protect his son from the workings 0:06:45.920 --> 0:06:49.479 of the Justice Department. So I think really the strategy 0:06:49.560 --> 0:06:51.719 is to not engage with it much at all, to 0:06:51.800 --> 0:06:54.960 let the prosecutors and the Department of Justice do its work, 0:06:55.040 --> 0:06:57.600 and for the president and the Biden campaign to stay 0:06:57.640 --> 0:06:58.279 far away from that. 0:06:58.560 --> 0:07:01.719 Yeah, definitely a very different strategy from what we continue 0:07:01.720 --> 0:07:04.919 to see from former President Trump. Zoe, talk to me 0:07:04.920 --> 0:07:09.280 about this trial date August fourteenth, walk me through the 0:07:09.320 --> 0:07:11.960 timeline on that. Did that feel kind of speedy to you? 0:07:12.800 --> 0:07:16.160 It's very speedy, and I should say not surprisingly so. 0:07:16.480 --> 0:07:19.360 The South Florida District Court has been known historically as 0:07:19.360 --> 0:07:21.960 a rocket docket. You know, cases that get brought there 0:07:22.520 --> 0:07:24.080 move to trial fast. 0:07:24.160 --> 0:07:24.400 There. 0:07:24.840 --> 0:07:27.840 That said, you know, our understanding is that this order 0:07:28.080 --> 0:07:31.360 is standard process for the court, but we haven't seen 0:07:31.640 --> 0:07:35.160 any motions from the defense yet and we're expecting some, 0:07:35.600 --> 0:07:38.680 if not, you know, quite a few from them, challenging 0:07:38.800 --> 0:07:42.880 the validity of the indictment, contesting evidence that the government 0:07:42.920 --> 0:07:47.720 wants to use, possible issues related to how classified information 0:07:48.320 --> 0:07:50.680 gets used in a future trial, and all of these 0:07:50.680 --> 0:07:53.000 are issues that are going to take weeks or months 0:07:53.000 --> 0:07:56.920 to litigate. So it's unlikely that August fourteenth remains the 0:07:56.960 --> 0:07:59.880 trial date, but it is certainly the judge, you know, 0:08:00.560 --> 0:08:03.520 at least putting down an anchor and making clear that 0:08:03.600 --> 0:08:07.240 she would like to move this along as quickly as possible. 0:08:07.680 --> 0:08:10.400 And what do we know, Zoe about the jury here 0:08:10.480 --> 0:08:12.240 is this This is going to be in Palm Beach 0:08:12.280 --> 0:08:13.600 County now correct. 0:08:14.120 --> 0:08:17.080 We're still waiting to see where the trial will take place. 0:08:17.120 --> 0:08:19.480 The judge's order had said it would actually be in 0:08:19.560 --> 0:08:22.440 her home district of Fort Pierce, Florida, and not in 0:08:22.480 --> 0:08:28.960 West Palm Beach. There are some process quirks in that 0:08:29.000 --> 0:08:31.560 district where cases that are filed in West Palm Beach 0:08:31.600 --> 0:08:36.520 can actually go to judges who sit in adjacent districts. So, 0:08:36.640 --> 0:08:38.800 you know, but either way, whether it's in Fort Pierce 0:08:38.920 --> 0:08:41.920 or West Palm Beach, Florida, you know, is a state 0:08:41.960 --> 0:08:44.840 that went for Trump in twenty twenty. You know, it 0:08:44.920 --> 0:08:48.280 is a red state, and the pool of potential jurors 0:08:48.440 --> 0:08:52.160 is likely going to include, you know, more people who 0:08:52.240 --> 0:08:55.480 voted for Donald Trump than say, if the trial were 0:08:55.679 --> 0:08:59.040 here in Washington. So you know, we don't know what 0:08:59.200 --> 0:09:02.320 that pool will look like. And you know, certainly jury's 0:09:02.360 --> 0:09:07.160 election is meant to screen people not necessarily have an opinion, 0:09:07.360 --> 0:09:09.960 but who feel that their minds are made up and 0:09:10.160 --> 0:09:13.560 they can't look at the evidence objectively, you know. And 0:09:13.600 --> 0:09:16.680 that may mean that some of the former president's political 0:09:16.720 --> 0:09:19.160 supporters are on the jury, but that certainly doesn't mean 0:09:19.640 --> 0:09:22.680 it's a you know, stacked deck at this point either way. 0:09:23.360 --> 0:09:25.920 Well, Kayleie, talk to me about the politics here. That 0:09:26.000 --> 0:09:29.599 August fourteenth date comes just ahead of a pretty important 0:09:29.640 --> 0:09:32.280 event when it comes to the twenty twenty four election. 0:09:32.440 --> 0:09:33.240 Talk to me about that. 0:09:33.360 --> 0:09:35.600 Well, it does. This trial would last for two weeks, 0:09:35.600 --> 0:09:37.880 which would mean it would still be ongoing on August 0:09:37.920 --> 0:09:41.079 twenty third, when the first Republican primary debate is scheduled 0:09:41.120 --> 0:09:44.480 to happen in Milwaukee. Granted, former President Trump hasn't actually 0:09:44.480 --> 0:09:46.920 committed to be at that debate either way, but clearly 0:09:46.920 --> 0:09:49.360 that would put this front and center on the topic 0:09:49.400 --> 0:09:52.199 for discussion for his opponents in the primary to really 0:09:52.880 --> 0:09:56.360 attack him on potentially, So there's that consideration. Also, we 0:09:56.440 --> 0:09:58.240 have to keep in mind that for months now we 0:09:58.280 --> 0:10:01.480 have expected August could the month where a potential indictment 0:10:01.520 --> 0:10:04.360 comes down in Georgia in Fulton County, where the district 0:10:04.400 --> 0:10:07.200 attorney there is looking into president former President Trump's efforts 0:10:07.200 --> 0:10:10.120 to overturn the results of the twenty twenty election in 0:10:10.160 --> 0:10:13.040 that state. So August could be a very politically legally 0:10:13.040 --> 0:10:16.200 briefe month for the former president. Again, assuming that this 0:10:16.280 --> 0:10:19.319 trial actually happens two months from now, which Zoe was 0:10:19.400 --> 0:10:22.480 just outlining, there's a very real chance that it does not. 0:10:23.280 --> 0:10:26.640 Kaylee, final thirty seconds here, what's going to be your 0:10:26.880 --> 0:10:29.280 big question heading into that debate? What do you think 0:10:29.360 --> 0:10:31.320 is going to be like the headline the next day? 0:10:31.960 --> 0:10:33.240 Well, I want to know who's going to get on 0:10:33.280 --> 0:10:34.839 the stage first of all, because you need to have 0:10:34.920 --> 0:10:37.920 a certain number of donations and people signed on to 0:10:37.960 --> 0:10:41.679 support you. And now that we're over a dozen Republican 0:10:41.679 --> 0:10:43.800 primary candidates, is the stage going to be big enough? 0:10:43.800 --> 0:10:45.160 Are we going to have to have, you know, two 0:10:45.160 --> 0:10:46.920 debates at once, and then of course, how do they 0:10:46.960 --> 0:10:50.560 approach the Trump question, whether or not they would pardon him, 0:10:50.840 --> 0:10:52.800 what they think about his actions. Those have been very 0:10:52.800 --> 0:10:55.280 difficult questions for these other candidates to navigate. 0:10:55.480 --> 0:10:57.040 Well, we're going to have you here with us to 0:10:57.080 --> 0:10:59.000 cover all of it. Kaylee, thank you so much. That 0:10:59.040 --> 0:11:01.960 was Kelly Lions and Zoe Tilman down in DC with us. 0:11:02.240 --> 0:11:04.880 You're listening to Bloomberg Law. I'm Madison Mills and this 0:11:05.240 --> 0:11:05.920 is Bloomberg. 0:11:12.320 --> 0:11:17.120 This is Bloomberg Law with June Grasso from Bloomberg Radio. 0:11:19.280 --> 0:11:22.160 I'm Madison Mills in for June Grasso, and this is 0:11:22.200 --> 0:11:25.800 Bloomberg Law. The AI craze it's not just hitting markets, 0:11:25.800 --> 0:11:29.880 it's also definitely been hitting Washington and President Joe Biden 0:11:29.960 --> 0:11:32.800 is scheduled to meet with business leaders and experts on 0:11:32.920 --> 0:11:37.079 artificial intelligence today. This is part of a broader shift 0:11:37.120 --> 0:11:40.560 from his administration and a move from his administration pushing 0:11:40.600 --> 0:11:44.600 for news security and privacy safeguards surrounding AI. So joining 0:11:44.679 --> 0:11:48.120 us to discuss is Jackie Davilos, Bloomberg News technology reporter. 0:11:48.480 --> 0:11:51.120 We've also got Courtney Rosen, our White House reporter from 0:11:51.160 --> 0:11:54.160 Bloomberg Government on the line. From DC. Thank you both 0:11:54.240 --> 0:11:56.319 so much for being here at Courtney, I want to 0:11:56.360 --> 0:11:59.120 start with you, what do we know about this meeting 0:11:59.160 --> 0:12:01.000 and what can we expel back to the big headlines 0:12:01.040 --> 0:12:01.640 to come out of it? 0:12:01.679 --> 0:12:06.000 To be President Biden is in California this week otherwise 0:12:06.080 --> 0:12:08.720 for political fundraisers, but on the way he's having a 0:12:08.720 --> 0:12:12.439 meeting today with AI experts and leaders. And what's a 0:12:12.480 --> 0:12:15.439 little different about this meeting compared to others he's done 0:12:15.480 --> 0:12:18.320 in the past is today he's talking to researchers, he's 0:12:18.360 --> 0:12:21.560 talking to advocates. In the past, he's met with tech 0:12:21.600 --> 0:12:25.360 industry CEOs, so he's definitely getting a different perspective here 0:12:25.720 --> 0:12:28.160 on his trip to California that he got from a 0:12:28.160 --> 0:12:30.680 meeting at the White House several weeks ago on the topic. 0:12:31.480 --> 0:12:34.440 His Chief of Staff, Jeff Zience, is leading the White 0:12:34.480 --> 0:12:37.880 House's effort to respond to AI. And I would note 0:12:37.880 --> 0:12:41.120 that mister Science was on the board of META right 0:12:41.120 --> 0:12:45.080 before President Biden took office, so he definitely has experience 0:12:45.120 --> 0:12:46.000 in the tech sector. 0:12:46.440 --> 0:12:48.440 Corney, I want to go back to you, because you're 0:12:48.520 --> 0:12:51.960 obviously in DC, you cover the White House. Do you 0:12:52.000 --> 0:12:55.040 get a sense that this has always been a priority 0:12:55.120 --> 0:12:57.520 for the Biden administration or is this kind of a 0:12:57.559 --> 0:12:59.679 newer move for them to look into AI. 0:13:00.360 --> 0:13:03.280 It's definitely new. I didn't hear them up until a 0:13:03.280 --> 0:13:06.520 couple months ago talking about AI and press briefings or 0:13:06.559 --> 0:13:10.120 in speeches. When it really became a topic was when 0:13:10.240 --> 0:13:14.119 chat GPT became public where people could test it out, 0:13:14.240 --> 0:13:17.600 and Congress started talking about it, the White House started 0:13:17.640 --> 0:13:19.920 talking about it, and that's when we really started to 0:13:19.960 --> 0:13:22.320 see Washington zone in on AI. 0:13:23.720 --> 0:13:26.360 Yeah, that makes a lot of sense. I wonder too, 0:13:27.080 --> 0:13:30.160 what you think the regulators in Washington might be missing 0:13:30.200 --> 0:13:34.280 when it comes to AI, because there is always that 0:13:34.360 --> 0:13:38.560 kind of criticism that Washington doesn't necessarily keep up with 0:13:38.600 --> 0:13:41.240 all of the technology booms that we experience. Do you 0:13:41.280 --> 0:13:43.280 get a sense that that story is going to be 0:13:43.320 --> 0:13:44.840 a little bit different when it comes to AI. 0:13:45.760 --> 0:13:48.880 Senator Schumer, who's the Senate majority leader, is definitely trying 0:13:48.920 --> 0:13:52.079 to create a different story here. He's scheduled tomorrow to 0:13:52.200 --> 0:13:55.800 release his proposal on how to regulate AI, and today 0:13:55.880 --> 0:13:58.280 he's having a meeting with senators to talk about what 0:13:58.320 --> 0:14:01.480 the technology is, how it works, so they're educated on 0:14:01.679 --> 0:14:03.360 what it is they're going to be writing a law 0:14:03.480 --> 0:14:06.199 about or writing a bill about I should say, and. 0:14:06.160 --> 0:14:08.079 I imagine a lot of the big tech players are 0:14:08.080 --> 0:14:10.880 going to be key in that conversation. Jackie, I want 0:14:10.880 --> 0:14:12.760 to come back to you. You were talking to me 0:14:12.840 --> 0:14:15.560 earlier about how the big tech players and those big 0:14:15.640 --> 0:14:18.760 names are also the big names that we're seeing push 0:14:18.840 --> 0:14:20.680 into AI. Can you tell me a little more about that. 0:14:21.040 --> 0:14:25.600 Absolutely, and you know, related to the wave of movement 0:14:25.680 --> 0:14:29.040 coming from Capitol Hill, these big players have a lot 0:14:29.080 --> 0:14:32.800 to do with the conversation that lawmakers are ultimately going 0:14:32.840 --> 0:14:35.280 to push forward when it comes to raining in some 0:14:35.360 --> 0:14:40.080 of this technology. We had spoken with representative from Virginia 0:14:40.160 --> 0:14:43.440 Don Bayer for our show, and there was a lot 0:14:43.440 --> 0:14:47.520 of excitement about the technology, but also an acknowledgment that 0:14:47.640 --> 0:14:50.960 lawmakers don't really know where to begin. Today was interesting 0:14:51.000 --> 0:14:54.080 and that the first bipart is a bill aimed at, 0:14:54.240 --> 0:14:56.960 you know, creating some kind of guardrails around AI, was 0:14:57.000 --> 0:15:00.240 released today and what it was pretty telling and that 0:15:00.360 --> 0:15:02.720 you know, it wasn't that meaty when it came to 0:15:02.800 --> 0:15:07.120 the specifics on how to create some guardrails. That's quite 0:15:07.520 --> 0:15:10.040 a bit of a contrast when you think about how 0:15:10.080 --> 0:15:14.720 far the European Union is in starting to enact pretty 0:15:14.760 --> 0:15:19.520 specific rules when it comes to reigning in AI, some 0:15:19.600 --> 0:15:24.040 of that being you know, banning facial recognition software for example, 0:15:24.160 --> 0:15:28.760 something that wasn't explicitly called out in the bipartisan bill 0:15:29.360 --> 0:15:32.160 proposed today. So just some differences there and just how 0:15:33.000 --> 0:15:37.880 far ahead one region is from another. But here especially, 0:15:38.320 --> 0:15:40.280 you know, the big tech players are going to have 0:15:40.320 --> 0:15:43.400 a big say given lotmakers need some of that guidance. 0:15:43.960 --> 0:15:46.520 Well, Jack, you asked such a great question to one 0:15:46.560 --> 0:15:48.920 of your guests on the show. You were like, what 0:15:49.040 --> 0:15:53.320 are the conversations at dinners in San Francisco about AI? 0:15:54.000 --> 0:15:56.400 Talk to me about the answer you got on that. 0:15:56.920 --> 0:16:00.680 Yeah, you know, there's a lot of excitement, but when 0:16:00.680 --> 0:16:04.720 it comes to the dinner table of these venture capitalists 0:16:04.800 --> 0:16:07.600 and the kinds of things that excite them, it's not 0:16:07.800 --> 0:16:13.440 always you know, rooted in reality. Let's put it nicely. 0:16:14.440 --> 0:16:18.600 There is just so much potential and a lot of optimism. 0:16:18.800 --> 0:16:23.320 That's really I think the vibe that Silicon Valley always 0:16:23.400 --> 0:16:27.000 has when introducing something new to the mainstream. But it 0:16:27.080 --> 0:16:30.200 was interesting because for the first time I think in 0:16:30.280 --> 0:16:34.520 a while, social media, for example, you know, the lawmakers 0:16:34.640 --> 0:16:38.200 and companies industry, we're never really on the same page 0:16:38.240 --> 0:16:41.200 when it comes to artificial intelligence. You're really seeing more 0:16:41.240 --> 0:16:45.360 of a common tenor with the acknowledgment that, look, we 0:16:45.440 --> 0:16:48.720 have something really exciting on our hands, but also, hey, 0:16:49.160 --> 0:16:53.600 this also has so much more to go. But we 0:16:53.640 --> 0:16:56.480 really need to start putting in the rules now much 0:16:56.520 --> 0:16:59.600 more proactive, let's learn from our mistakes, and just hearing 0:16:59.680 --> 0:17:03.240 that tone coming from both sides, I think is a 0:17:03.280 --> 0:17:04.960 new shift for technology. 0:17:05.359 --> 0:17:08.760 So Courtney, come back in here. I'm curious where things 0:17:08.800 --> 0:17:14.520 stand when it comes to AI regulation from the congressional perspective. Here, 0:17:14.920 --> 0:17:17.520 I guess what inning would you say that we're in. 0:17:17.640 --> 0:17:20.000 Are we in the first inning of that regulation? Are 0:17:20.000 --> 0:17:21.240 we down in the seventh? 0:17:21.320 --> 0:17:25.240 Where are we at sports metaphors? Congress loves that. I 0:17:25.359 --> 0:17:28.200 definitely say we're still toward the beginning of the game. 0:17:28.240 --> 0:17:32.000 They beginning too. When open ais CEO was here a 0:17:32.040 --> 0:17:35.639 couple of weeks ago talking about chat DBT, that was 0:17:35.680 --> 0:17:38.879 definitely the beginning of Congress getting interested in this topic. 0:17:39.560 --> 0:17:41.119 We saw a lot of headlines, we saw a lot 0:17:41.160 --> 0:17:44.000 of questions come out of members, and now we're starting 0:17:44.040 --> 0:17:46.040 to see them actually get to the work of drafting 0:17:46.040 --> 0:17:48.399 a bill, and like Jackie was just saying, we're not 0:17:48.440 --> 0:17:50.800 really sure what that'll look like. And it's the bill 0:17:50.920 --> 0:17:52.800 so far that has been out is not very meaty, 0:17:53.080 --> 0:17:56.040 so we'll see how that goes for sure. But Congress 0:17:56.040 --> 0:17:57.359 does love a sports analogy. 0:17:58.240 --> 0:18:01.520 They love a sports analogy, that is for sure. Jackie, 0:18:01.640 --> 0:18:04.280 talk to me about what your sources are saying when 0:18:04.320 --> 0:18:07.960 it comes to financing and how regulation might impact that. 0:18:08.160 --> 0:18:11.080 Are you hearing anyone say, you know, I'm so worried 0:18:11.080 --> 0:18:14.159 about the DC regulation story that I'm gonna hold my 0:18:14.200 --> 0:18:16.640 money for a little while and wait and see. 0:18:17.200 --> 0:18:22.240 Not so much. I think that, you know, the biggest players, Google, Microsoft, 0:18:23.119 --> 0:18:26.800 the chip makers, the cloud providers, they've all done a 0:18:26.840 --> 0:18:30.680 really good job at being proactive in engaging Capitol Hill 0:18:30.760 --> 0:18:34.960 and getting a sense of, you know, what is the sentiment, 0:18:35.440 --> 0:18:39.120 how can we shift that? And not in any nefarious way, 0:18:39.160 --> 0:18:42.480 but in a much more proactive manner in working with lawmakers. 0:18:42.480 --> 0:18:46.120 So everyone's somewhat on a similar page when it comes 0:18:46.280 --> 0:18:48.639 But when it comes to you know, the more nimble 0:18:48.760 --> 0:18:53.200 startups that don't have this like lobbying, funding and power 0:18:53.280 --> 0:19:00.119 and political capital in Washington, they do rely a lot 0:19:00.160 --> 0:19:04.040 on their you know, their biggest backers, whether it's the 0:19:04.160 --> 0:19:08.960 big vcs or you know some of these companies Microsoft, like, 0:19:09.040 --> 0:19:11.760 you know, they're backing Opening Opening, I obviously taking their 0:19:11.760 --> 0:19:15.080 own presence on Capitol Hill, but there's many other AI 0:19:15.160 --> 0:19:17.320 startups out there that have to rely on the vcs 0:19:17.359 --> 0:19:20.280 and the companies to kind of push the conversation forward 0:19:20.359 --> 0:19:22.679 for the industry on that front. 0:19:23.280 --> 0:19:26.320 Yeah, Courtney, final thirty seconds here, what is the next 0:19:26.359 --> 0:19:28.920 big thing when it comes to AI regulation? What should 0:19:28.920 --> 0:19:29.520 we be looking. 0:19:29.359 --> 0:19:33.560 Out for this summer? The White House Budget Office is 0:19:33.560 --> 0:19:36.880 set to set standards on how AI will be used 0:19:36.880 --> 0:19:41.160 in government. And we know that thousands, hundreds of thousands, 0:19:41.200 --> 0:19:43.680 millions of people interact with the US government every year, 0:19:44.040 --> 0:19:47.879 and how the US integrates AI into that experience is 0:19:47.920 --> 0:19:51.080 going to be really telling about how the Biden administration, 0:19:51.200 --> 0:19:53.880 how government sees AIM moving forward. So I would definitely 0:19:53.880 --> 0:19:54.439 be watching that. 0:19:54.760 --> 0:19:56.840 All right, Really good to know. Thank you so much, 0:19:56.920 --> 0:19:59.639 Courtney Rosen, White House reporter for Bloomberg Government. And we 0:19:59.720 --> 0:20:03.879 also Jackie Davilos, our Bloomberg News technology reporter. You're listening 0:20:03.920 --> 0:20:06.159 to Bloomberg Law coming up on the show, How the 0:20:06.400 --> 0:20:09.560 Justice Department is looking at bank mergers in a new way. 0:20:09.880 --> 0:20:12.480 I'm Madison Mills. I'm in for June Grasso, and this 0:20:12.880 --> 0:20:13.520 is Bloomberg. 0:20:21.920 --> 0:20:26.720 This is Bloomberg Law with June Grasso from Bloomberg Radio. 0:20:29.040 --> 0:20:32.760 I'm Madison Mills in for June Grasso this week. Remember 0:20:32.840 --> 0:20:35.520 those four banks they failed a few months ago. Some 0:20:35.640 --> 0:20:38.400 called it a banking crisis, others called a turmoil. There 0:20:38.440 --> 0:20:40.680 is a lot of turmoil over how to describe it, 0:20:41.040 --> 0:20:43.600 but either way, it led to some big questions at 0:20:43.600 --> 0:20:47.880 the Justice Department, with officials now weighing a revamp over 0:20:47.960 --> 0:20:51.720 how they scrutinize bank mergers. So joining us to discuss 0:20:51.800 --> 0:20:54.800 is Leah Nylan and Bloomberg News Andy Trust, reporter down 0:20:54.840 --> 0:20:57.560 in DC for us. Leah, thanks so much for being here. 0:20:58.640 --> 0:21:00.439 What's up with the DJ here? So what's up with 0:21:00.440 --> 0:21:03.280 the Justice Department? What are they saying about what the 0:21:03.320 --> 0:21:04.879 new regulation could look like? 0:21:05.520 --> 0:21:08.439 Yeah, So the Justice Department has a dual role with 0:21:08.520 --> 0:21:14.080 banking authorities to review any bank mergers, and they look 0:21:14.080 --> 0:21:16.000 at them just like they would any other deal, to 0:21:16.080 --> 0:21:18.560 sort of see how the merger of a bank would 0:21:18.560 --> 0:21:21.520