WEBVTT - Interview Only w/ Miriam Vogel & Anne Neuberger -  Can Government Effectively Regulate The AI Arms Race?

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<v Speaker 1>so use that code. Hello there, I'm Chuck Todd and

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<v Speaker 1>welcome to another episode of Sunday Night Tonight. It's a

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<v Speaker 1>one topic deep dive on artificial intelligence, and maybe the

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<v Speaker 1>simplest way to frame the AI debate right now is this,

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<v Speaker 1>Americans are being asked to trust a new technological revolution

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<v Speaker 1>at a moment when they're not entirely convinced the last

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<v Speaker 1>one worked out so well.

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<v Speaker 2>Think about it.

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<v Speaker 1>Search engines once felt empowering, social media once felt connective.

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<v Speaker 1>Online marketplaces once felt simpler and more useful. But over time,

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<v Speaker 1>many of those same technologies became harder to trust, distorted

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<v Speaker 1>by algorithms, advertising, misinformation, polarization, and the constant incentive to

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<v Speaker 1>monetize our attention. So when Selagon Valley tells the public,

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<v Speaker 1>don't worry, this next technological leap will change everything for

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<v Speaker 1>the better, it's understandable that many of us respond with

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<v Speaker 1>a little skepticism, or maybe a lot of skepticism, because

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<v Speaker 1>AI isn't some distant concept anymore. It's already shaping classrooms, workplaces,

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<v Speaker 1>financial systems, warfare, and even the information we consume every day,

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<v Speaker 1>which raises two very different but deeply connected questions. One,

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<v Speaker 1>how do we protect consumers from AI? And two how

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<v Speaker 1>do we protect country from AI? So tonight we're going

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<v Speaker 1>to explore both sides of this challenge.

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<v Speaker 2>Miriam Vogel joins me. First.

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<v Speaker 1>She chairs the National AI Advisory Committee and leads an

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<v Speaker 1>organization called Equal AI that's focused on governance, fairness, and

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<v Speaker 1>consumer trust. She's trying to answer the question how do

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<v Speaker 1>we build guardrails around AI before the technology outruns the

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<v Speaker 1>public's confidence in it. Then I'll be joined by and

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<v Speaker 1>Newburger on the issue of global security, because while Miriam

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<v Speaker 1>Vogel is trying to make sure AI doesn't discriminate against

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<v Speaker 1>you when you apply for a mortgage, and Newburger is

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<v Speaker 1>trying to make sure that same technology isn't used by

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<v Speaker 1>a foreign adversary.

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<v Speaker 2>To shut down the bank.

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<v Speaker 1>Altogether, it's the same technology, it's two completely different battlefields,

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<v Speaker 1>and somewhere between innovation and regulation, between opportunity and fear,

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<v Speaker 1>is the question governments around the world are now struggling

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<v Speaker 1>to answer in real time, how do you govern a

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<v Speaker 1>technology that evolves faster than governments themselves. Tonight's conversation comes

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<v Speaker 1>to you from the Unconventional Diner. It's one of Washington's

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<v Speaker 1>great neighborhood spots, known for taking classic American comfort food

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<v Speaker 1>and giving it an inventive twist, which trankully feels like

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<v Speaker 1>the perfect backdrop for a conversation about technology trying to

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<v Speaker 1>reinvent itself in our everyday life.

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<v Speaker 2>So let's get started. Very in Bogo. It's nice to

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<v Speaker 2>see you.

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<v Speaker 1>Let me start with tell me a little something about

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<v Speaker 1>what equal AI is supposed to be.

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<v Speaker 3>So we created equal AI seven and a half years

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<v Speaker 3>ago because we saw the emergence of AI. We saw

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<v Speaker 3>that there was a deep enthusiasm starting to root across

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<v Speaker 3>the country and the globe, but without a lot of

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<v Speaker 3>understanding of the potential risks and the need for guardrails,

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<v Speaker 3>and so we created it that time more of a

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<v Speaker 3>temporary place where companies, policymakers, lawyers, other key stakeholders could

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<v Speaker 3>align on guardrails. How do we make sure that this

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<v Speaker 3>really serves people? How do we contain risks and make

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<v Speaker 3>sure that we can optimize use. So flash forward seven

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<v Speaker 3>and a half years, it turns out we have not

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<v Speaker 3>gone out of style in terms of meeting the big

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<v Speaker 3>place to align on guardrails and best practices.

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<v Speaker 1>The American electorates skepticism and AI seems very rational to me.

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<v Speaker 1>When you look at Web one point zero search and commerce,

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<v Speaker 1>the user experience at first was great, then the.

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<v Speaker 2>User became the product.

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<v Speaker 1>Social media, the initial launch seemed great, building up communities.

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<v Speaker 1>Then what happened algorithms, the user becomes.

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<v Speaker 2>The product, and so we don't like social media.

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<v Speaker 1>We're more frustrated than ever with how the regular old

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<v Speaker 1>Internet works, how Amazon or any of the online commerce

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<v Speaker 1>marketplaces work.

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<v Speaker 2>And so to me, it's very rational.

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<v Speaker 1>They look at AI and, oh, great, yet another way

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<v Speaker 1>that just is going to exploit us.

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<v Speaker 3>I think you're absolutely right. We bring a lot of

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<v Speaker 3>tech baggage to this conversation, and I think There's another

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<v Speaker 3>layer of a problem here, and that's that we're not

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<v Speaker 3>listening to people we're expecting them to adopt AI. We're

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<v Speaker 3>talking about you say we.

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<v Speaker 2>Who do you feel like you're speaking for when you.

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<v Speaker 3>Say week leadership in general, corporate leadership, policymakers, I think

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<v Speaker 3>civil society. I think we all need to do a

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<v Speaker 3>better job of listening to people.

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<v Speaker 2>Know.

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<v Speaker 3>We've published a book in October called Governing the Machine

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<v Speaker 3>where we outline nine categories of risk, and each of

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<v Speaker 3>those categories is very meaningful, and we need to be

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<v Speaker 3>taking those into account when we're talking about how people

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<v Speaker 3>and why people should be using AI. So if your

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<v Speaker 3>concern is privacy, we can't dismiss that. We need to

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<v Speaker 3>talk about how we're going to address your privacy concerns

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<v Speaker 3>before we can expect you to be using it. I

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<v Speaker 3>think we need to be doing a better job of

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<v Speaker 3>having a nuanced conversation where first of all, we're telling

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<v Speaker 3>people how we're using AI. Too many people don't know

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<v Speaker 3>that they have been using it all day, every day,

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<v Speaker 3>unlocking their phones, meeting their news feeds, scrolling through social media.

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<v Speaker 3>When to let people know that they are using it,

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<v Speaker 3>then we need to let people know what safe use

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<v Speaker 3>looks like. We need to be establishing what the frameworks

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<v Speaker 3>are that companies and organizations are putting in place so

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<v Speaker 3>they know who to trust and what trustworthy governance looks like.

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<v Speaker 1>All of this makes sense, except it doesn't look like

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<v Speaker 1>anybody in the industry is even remotely thinking about this.

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<v Speaker 1>Whether it's Open AI, whether it's Plowed, whether it's the

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<v Speaker 1>other Gemini, whether it's Rock everybody. I mean, when you

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<v Speaker 1>look at the amount of money being invested in infrastructure

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<v Speaker 1>to build out even more AI, that means there's a

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<v Speaker 1>whole bunch of investors looking to get their money extract

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<v Speaker 1>profits out of this. Nobody seems to be worried about guardrails.

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<v Speaker 1>In fact, I look at the whenever a new update concept,

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<v Speaker 1>it feels like, you know, there's how we so powerful.

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<v Speaker 1>We're not sure we can you know, we're not sure

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<v Speaker 1>that the new cybersecurity can handle it. It's like a

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<v Speaker 1>marketing ploy, not actually a serious attempt to add actually

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<v Speaker 1>doing baby steps.

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<v Speaker 3>Well, you're not wrong. A report last year from McKenzie

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<v Speaker 3>said that over eighty eight percent of companies are using

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<v Speaker 3>AI in at least one pivotal function that was a

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<v Speaker 3>year ago. It's probably a much higher number now, but

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<v Speaker 3>at that point only a third had any AI governance

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<v Speaker 3>in place. The World Economic Forum had a report earlier

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<v Speaker 3>this year that said only less than one percent of

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<v Speaker 3>companies have strong AI governance frameworks in place. So you

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<v Speaker 3>are correct that it is not something we're seeing a

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<v Speaker 3>lot of our hearing a lot about. Although I have

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<v Speaker 3>the privilege of working with companies that really do prioritize

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<v Speaker 3>AI governance, so I can tell you the good news

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<v Speaker 3>is there is alignment across industry for companies, for leaders

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<v Speaker 3>that care about AI governance. You'll not see a lot

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<v Speaker 3>of distinction between what those best practices are across the

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<v Speaker 3>companies and organizations that have strong AI governance frameworks. You'll

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<v Speaker 3>see visibility into how they're using AI. You'll see accountability

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<v Speaker 3>from the top. It has to start at the top,

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<v Speaker 3>but then across divisions so people understand who's the point person,

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<v Speaker 3>what they should be looking for. You'll see not just

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<v Speaker 3>AI principles, but operationalization.

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<v Speaker 1>I feel like you're describing what a company that might

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<v Speaker 1>adopt an AI platform into their business and integrate it,

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<v Speaker 1>that they may be taking care in trying to do

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<v Speaker 1>these things.

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<v Speaker 2>That's not who I'm talking about. I'm talking about.

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<v Speaker 1>The purveyors themselves, whether it's Open AI, Anthropic Google, with

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<v Speaker 1>Gemini or ix whatever we're calling the elon of musk

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<v Speaker 1>operation these days. What evidence that there is any interest

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<v Speaker 1>in good governance in those far entities.

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<v Speaker 3>I can tell you the ones that I work with

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<v Speaker 3>so in our Badge program for senior executives, in our

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<v Speaker 3>agentic AI summit we had this week, we have some

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<v Speaker 3>of the best minds at Google, Deep Mind, at AWS

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<v Speaker 3>and Amazon Microsoft who are being very intentional about their

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<v Speaker 3>governance frameworks. You can look online to see what they've implemented.

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<v Speaker 3>You can talk to their senior executives who will be

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<v Speaker 3>very well versed in what they are doing intentionally and

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<v Speaker 3>across their companies to make sure they have strong governance

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<v Speaker 3>in place. But I don't want to dismiss the deployer

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<v Speaker 3>role because most of their applications that will have access

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<v Speaker 3>to and that we're currently using, are from those large

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<v Speaker 3>companies small companies that are using AI who also have

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<v Speaker 3>a key role in making sure that it's safe.

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<v Speaker 1>If the industry is so concerned about governance, why are

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<v Speaker 1>they fighting Why are they fighting state based regulation? Why

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<v Speaker 1>is it so important to them to convince the Trump

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<v Speaker 1>administration to do whatever it takes to prevent.

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<v Speaker 2>What many of us refer to as the laboratories of democracy.

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<v Speaker 1>In state government's figuring out a way to protect consumers.

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<v Speaker 2>From a state level.

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<v Speaker 3>Yeah, and it's a fair question. I think, first of all,

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<v Speaker 3>there's nuance in what different companies are and are not

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<v Speaker 3>pushing for. But to your question about state versus federal

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<v Speaker 3>I'm a former general counsel, so I have sympathy into

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<v Speaker 3>how hard it is to respond to a patchwork of laws.

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<v Speaker 3>I think it's in everyone's best interest that there're certainty

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<v Speaker 3>and clarity, not just across the country, but across the globe.

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<v Speaker 3>I mean, we're talking about AI. It doesn't have boundaries,

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<v Speaker 3>and users across the globe are going to need that

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<v Speaker 3>it's safe and lawful. So the war we have clarity

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<v Speaker 3>and certainty and uniformity, the easier it is to be compliant.

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<v Speaker 1>I understand that. But if you have a dysfunctional Congress,

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<v Speaker 1>it is not a functioning body of government. They're at

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<v Speaker 1>war with each other. You have a we don't have

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<v Speaker 1>a federal government interested in these safeguards, So why step

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<v Speaker 1>on the state governments from Trump.

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<v Speaker 3>I can't speak to that. What I can say is

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<v Speaker 3>I do personally have some great experience of good things happening,

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<v Speaker 3>the very thoughtful, proactive things happening in the government space.

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<v Speaker 3>So for instance, at our agentic AI summit this week,

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<v Speaker 3>we got to talk with the Acting Secretary of Labor

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<v Speaker 3>who's being very forward thinking and proactive about preparing the

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<v Speaker 3>workforce and employers for an AI economy. They have an

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<v Speaker 3>AI literacy framework. Most people don't know what AI literacy is,

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<v Speaker 3>and so they've broken it down for employers so they

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<v Speaker 3>can adopt and learn from this framework. They have text

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<v Speaker 3>based AI literacy tools, and that's really important because when

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<v Speaker 3>we're thinking about AI literacy, not every American has access

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<v Speaker 3>to Wi Fi, and so if you have an application online,

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<v Speaker 3>many people will not have access to it. So they've

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<v Speaker 3>created a digestible text based program where people can get

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<v Speaker 3>a ten minute overview and introduction to AI. That will

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<v Speaker 3>not make everybody AI ready workforce in terms of being

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<v Speaker 3>an end and neuro computer scientists, but at least gets

0:13:02.480 --> 0:13:04.560
<v Speaker 3>people over the hump of knowing what AI is and

0:13:04.559 --> 0:13:05.360
<v Speaker 3>how they're using it.

0:13:05.840 --> 0:13:08.600
<v Speaker 2>I feel like we're trying to do multiple things here.

0:13:08.640 --> 0:13:11.560
<v Speaker 1>That sounds like we're on the education side, how to

0:13:11.559 --> 0:13:13.800
<v Speaker 1>get people up to speed, how to get people comfortable

0:13:13.920 --> 0:13:15.640
<v Speaker 1>with using if it was like trying to teach me

0:13:15.640 --> 0:13:19.400
<v Speaker 1>a body, he's a personal computer. Well, what about the

0:13:19.400 --> 0:13:22.920
<v Speaker 1>consumer protection side? And that's where it seems as if

0:13:24.160 --> 0:13:29.640
<v Speaker 1>the industry is petrified of any attempt at a regulation

0:13:29.760 --> 0:13:32.800
<v Speaker 1>that's consumer protection because they say, well, that's stepping on

0:13:32.840 --> 0:13:38.760
<v Speaker 1>our ability to be able to either beat China in

0:13:38.800 --> 0:13:40.800
<v Speaker 1>the AI race or keep up with China.

0:13:41.040 --> 0:13:43.840
<v Speaker 3>You're right, we need to have our eye on the

0:13:43.880 --> 0:13:47.680
<v Speaker 3>state houses and the congresses across the globe to understand

0:13:47.679 --> 0:13:50.720
<v Speaker 3>what new laws are coming down. But we also should

0:13:50.720 --> 0:13:52.960
<v Speaker 3>not lose sight where I think most of this plays out,

0:13:53.000 --> 0:13:56.360
<v Speaker 3>and that's in the courthouses. I think most of how

0:13:56.400 --> 0:14:00.440
<v Speaker 3>AI is regulated will come down to how courts are citing,

0:14:00.520 --> 0:14:03.320
<v Speaker 3>how current laws on the books will be applied to

0:14:03.400 --> 0:14:06.360
<v Speaker 3>AI use. We have three chapters in the book on

0:14:06.960 --> 0:14:12.120
<v Speaker 3>how different countries across the globe have laws currently in

0:14:12.240 --> 0:14:15.120
<v Speaker 3>place that will be impactful. We've seen it play out

0:14:15.120 --> 0:14:17.680
<v Speaker 3>in IP and copyright that will only increase in the

0:14:17.760 --> 0:14:22.360
<v Speaker 3>years to come. We've seen it in several other privacy

0:14:22.400 --> 0:14:24.800
<v Speaker 3>areas and so forth. I think we can expect.

0:14:24.720 --> 0:14:26.200
<v Speaker 2>All eminating out of Europe.

0:14:26.000 --> 0:14:27.920
<v Speaker 3>Right we have no way of case law here in

0:14:27.960 --> 0:14:31.240
<v Speaker 3>the US as well. For sure, I think will increasingly

0:14:31.360 --> 0:14:37.440
<v Speaker 3>see towards law consumer protection laws, contract laws where we'll

0:14:37.480 --> 0:14:40.760
<v Speaker 3>be deciding who has liability because the lawyers are catching

0:14:40.800 --> 0:14:44.040
<v Speaker 3>on to this and they will make sure that there

0:14:44.120 --> 0:14:46.640
<v Speaker 3>is liability for those that are taking their eye off

0:14:46.640 --> 0:14:50.920
<v Speaker 3>the ball in terms of safety and what the negative

0:14:51.000 --> 0:14:52.640
<v Speaker 3>risks and impacts could result in.

0:14:52.960 --> 0:14:57.400
<v Speaker 1>Let's assume we had a functioning, feral legislative branch that

0:14:58.520 --> 0:15:00.640
<v Speaker 1>was going to look at this not as seeing which

0:15:00.640 --> 0:15:02.680
<v Speaker 1>side is going to contribute the most amount of money

0:15:02.720 --> 0:15:04.680
<v Speaker 1>to their mentor, because that's the other part of this.

0:15:04.760 --> 0:15:09.280
<v Speaker 1>All of the AI associated super PACs I think are

0:15:09.320 --> 0:15:12.080
<v Speaker 1>sort of warping the conversation on regulation. Let's assume we

0:15:12.120 --> 0:15:19.400
<v Speaker 1>didn't have this political cloud hanging over what would what

0:15:20.360 --> 0:15:24.720
<v Speaker 1>is a recommendation of what first step regulation.

0:15:24.240 --> 0:15:27.480
<v Speaker 2>Would look like with AI bodels and what.

0:15:29.080 --> 0:15:34.040
<v Speaker 1>Entity in the government is best equipped to regulate these ais.

0:15:34.720 --> 0:15:39.800
<v Speaker 3>It's a great question. I think there's more. We need

0:15:39.840 --> 0:15:43.080
<v Speaker 3>more certainty on what the expectations are out of companies.

0:15:43.160 --> 0:15:48.120
<v Speaker 3>We need to understand The basic question with AI use

0:15:48.160 --> 0:15:50.200
<v Speaker 3>that we always need to be able to answer, which

0:15:50.240 --> 0:15:52.360
<v Speaker 3>is for who could this fail? We need to make

0:15:52.400 --> 0:15:56.720
<v Speaker 3>sure that AI deployment are designed around thinking about what

0:15:56.760 --> 0:16:00.360
<v Speaker 3>the human use cases are and what the actual application are.

0:16:00.440 --> 0:16:03.960
<v Speaker 3>And I think there's a role for every agency and government.

0:16:04.120 --> 0:16:06.640
<v Speaker 3>They're all going to be using AI personally if they're

0:16:06.680 --> 0:16:09.280
<v Speaker 3>not already. We know there's an executive order mandating it's

0:16:09.320 --> 0:16:12.680
<v Speaker 3>being used across agencies as well as the oversight, but

0:16:12.720 --> 0:16:15.600
<v Speaker 3>I don't want to lose sight of the other ways

0:16:15.640 --> 0:16:19.320
<v Speaker 3>that this is where leadership is popping up. So with

0:16:19.520 --> 0:16:22.280
<v Speaker 3>Equal AI, we've been doing an AI literacy tour across

0:16:22.400 --> 0:16:25.720
<v Speaker 3>the country to listen to people, to hear what they're seeing,

0:16:25.760 --> 0:16:29.400
<v Speaker 3>what they're worried about, but also to elevate leadership. What

0:16:29.440 --> 0:16:35.240
<v Speaker 3>it looks like when AI leadership is what it looks

0:16:35.280 --> 0:16:37.920
<v Speaker 3>like when we have AI leadership. So for instance, we've

0:16:37.920 --> 0:16:42.040
<v Speaker 3>been to Tennessee, We've been to Arizona. We're having conversations

0:16:42.040 --> 0:16:44.920
<v Speaker 3>and cities across the country where we're seeing mayors who

0:16:45.000 --> 0:16:49.040
<v Speaker 3>are using it for smart traffic management, creating resource hubs

0:16:49.280 --> 0:16:53.120
<v Speaker 3>so that small businesses are in touch with academics, training,

0:16:53.480 --> 0:16:57.440
<v Speaker 3>our next gen, but also getting small businesses AI ready.

0:16:57.960 --> 0:16:59.880
<v Speaker 3>I think there's a lot of tools that we have

0:17:00.120 --> 0:17:04.200
<v Speaker 3>now at our disposal where we have foundations of leadership,

0:17:04.200 --> 0:17:06.520
<v Speaker 3>and so we just need to understand what does that

0:17:06.560 --> 0:17:09.919
<v Speaker 3>look like. You know, at ASU where they are leaning

0:17:09.960 --> 0:17:14.920
<v Speaker 3>into AI USE, they're giving students the capabilities of generative

0:17:14.960 --> 0:17:18.480
<v Speaker 3>models and that even how will I am teaching augentic

0:17:18.560 --> 0:17:22.480
<v Speaker 3>AI used to their students. So I think we actually

0:17:22.520 --> 0:17:25.040
<v Speaker 3>have a lot of opportunities for leadership that we shouldn't

0:17:25.040 --> 0:17:25.639
<v Speaker 3>be overlooking.

0:17:25.960 --> 0:17:28.520
<v Speaker 1>I hear you, but this I mean talk about scattershot

0:17:28.680 --> 0:17:33.720
<v Speaker 1>like we just described, seems the scatter shot and frankly,

0:17:35.440 --> 0:17:37.760
<v Speaker 1>and again I'm liking you'd like defend all of these

0:17:37.960 --> 0:17:40.480
<v Speaker 1>and and I don't. I don't mean to try to

0:17:40.480 --> 0:17:43.240
<v Speaker 1>put you on the defensive, but it does appear to

0:17:43.240 --> 0:17:46.359
<v Speaker 1>be that it's all scattershot, and it's really those that

0:17:46.480 --> 0:17:52.439
<v Speaker 1>have the ability to to maybe even curiosity to be

0:17:52.600 --> 0:17:55.359
<v Speaker 1>first movers and to learn this stuff. We'll do it,

0:17:56.280 --> 0:17:59.639
<v Speaker 1>but we I mean, it does feel as if this

0:17:59.680 --> 0:18:02.879
<v Speaker 1>is way ahead of anny guardrails that are even remotely

0:18:02.920 --> 0:18:04.320
<v Speaker 1>ready to be used.

0:18:04.720 --> 0:18:06.600
<v Speaker 3>You know, I think you're getting at something check that

0:18:06.640 --> 0:18:09.879
<v Speaker 3>we need to be prepared for AI is a disruptor,

0:18:10.200 --> 0:18:11.920
<v Speaker 3>and I think we need to look at this as

0:18:12.280 --> 0:18:15.520
<v Speaker 3>a disruption for good. We can't operate in silos anymore.

0:18:15.680 --> 0:18:19.240
<v Speaker 3>AI connects us all and makes us all dependent on

0:18:19.240 --> 0:18:22.800
<v Speaker 3>one another to ensure that we know how each other

0:18:22.840 --> 0:18:26.080
<v Speaker 3>fit into the use cases. We can't imagine that only

0:18:26.119 --> 0:18:28.280
<v Speaker 3>within our company are we going to be impacted by

0:18:28.320 --> 0:18:30.680
<v Speaker 3>our AI use We can't imagine only within our state.

0:18:31.000 --> 0:18:34.879
<v Speaker 3>There's overlap across boundaries when we're talking about AI, and

0:18:34.920 --> 0:18:36.840
<v Speaker 3>so we're going to have to break silos. We're going

0:18:36.880 --> 0:18:40.720
<v Speaker 3>to have to rethink culture in organizations where you can't

0:18:40.880 --> 0:18:45.480
<v Speaker 3>just you know, pinpoint which agency or which department is

0:18:45.480 --> 0:18:49.239
<v Speaker 3>in charge of AI. It is across organizations, it is

0:18:49.280 --> 0:18:52.600
<v Speaker 3>across states, and you're right, it's dissipated. It's not the

0:18:52.600 --> 0:18:55.840
<v Speaker 3>way we're constructed. But we're going to have to rethink that's.

0:18:55.359 --> 0:18:55.840
<v Speaker 2>Talking about it.

0:18:57.119 --> 0:19:02.600
<v Speaker 1>I guess, agentic AI, do you really think we're ready

0:19:02.920 --> 0:19:05.800
<v Speaker 1>for AI to make decisions without a human interface.

0:19:06.560 --> 0:19:10.120
<v Speaker 3>I think there are a lot of concerns about the

0:19:10.160 --> 0:19:14.480
<v Speaker 3>state of readiness with agentic AI because of the statistics

0:19:14.520 --> 0:19:17.280
<v Speaker 3>we talked about that if less than one percent of

0:19:17.359 --> 0:19:20.800
<v Speaker 3>companies have strong AI governance in place, they are not

0:19:20.960 --> 0:19:25.040
<v Speaker 3>prepared for AI deployment, let alone agentic AI deployment. I

0:19:25.119 --> 0:19:28.240
<v Speaker 3>mentioned we had an agentic AI summit this week where

0:19:28.240 --> 0:19:31.760
<v Speaker 3>we were looking at what is the optimal use cases

0:19:31.800 --> 0:19:33.680
<v Speaker 3>of a dentic AI. What does it look like if

0:19:33.920 --> 0:19:37.240
<v Speaker 3>we get this right. We looked at challenges, We looked

0:19:37.280 --> 0:19:40.160
<v Speaker 3>at the map between where we are today and how

0:19:40.200 --> 0:19:43.040
<v Speaker 3>we will need to prioritize the steps to get to

0:19:43.119 --> 0:19:46.400
<v Speaker 3>the optimal end state. And you could only do this

0:19:46.480 --> 0:19:49.600
<v Speaker 3>if you have strong governance in place. And again, I

0:19:49.600 --> 0:19:51.960
<v Speaker 3>think we need to break down what we mean by governance.

0:19:52.040 --> 0:19:55.600
<v Speaker 3>You know, too many people think it's a government responsibility

0:19:55.880 --> 0:20:00.560
<v Speaker 3>or a stop gapped innovation. We really need to understand

0:20:00.600 --> 0:20:04.800
<v Speaker 3>that governance is something that leadership needs to be held

0:20:04.800 --> 0:20:08.520
<v Speaker 3>accountable for and take ownership of whatever your organization is

0:20:08.520 --> 0:20:11.159
<v Speaker 3>because you're going to be using AI, and we need

0:20:11.200 --> 0:20:14.440
<v Speaker 3>to be realizing that it is the norms, the culture,

0:20:14.520 --> 0:20:19.200
<v Speaker 3>the practices that build trust and really unlock the benefits

0:20:19.240 --> 0:20:20.360
<v Speaker 3>of this innovation.

0:20:20.960 --> 0:20:25.119
<v Speaker 1>Is you know, and this could happen because of the

0:20:25.160 --> 0:20:27.600
<v Speaker 1>populist backlash that I think is coming right now with AI.

0:20:27.840 --> 0:20:29.240
<v Speaker 2>Right some of it has to do with what I

0:20:29.240 --> 0:20:30.320
<v Speaker 2>talked about with social.

0:20:30.040 --> 0:20:33.239
<v Speaker 1>Media, Others will be fear of AI job displacement, and

0:20:33.320 --> 0:20:36.720
<v Speaker 1>you can just feel that there is certainly exploitable anger

0:20:36.720 --> 0:20:39.720
<v Speaker 1>out there in our politics that you could see if

0:20:39.760 --> 0:20:46.480
<v Speaker 1>Congress passed the law next that said no AIP, you

0:20:46.600 --> 0:20:49.480
<v Speaker 1>cannot use agentic AI.

0:20:51.280 --> 0:20:51.680
<v Speaker 2>Period.

0:20:51.760 --> 0:20:53.960
<v Speaker 1>There has to be a human interface at the very

0:20:54.040 --> 0:20:59.600
<v Speaker 1>very end, whether it's confirming a purchase, confirming a decision,

0:21:01.119 --> 0:21:02.119
<v Speaker 1>that it cannot be.

0:21:02.119 --> 0:21:03.399
<v Speaker 2>Left only to.

0:21:05.000 --> 0:21:08.639
<v Speaker 1>The AI platform.

0:21:08.920 --> 0:21:10.359
<v Speaker 2>What would the industry say to something.

0:21:11.280 --> 0:21:12.760
<v Speaker 3>I think it would say that you're a little late

0:21:12.920 --> 0:21:17.080
<v Speaker 3>because it is being deployed. So we cannot slow down innovation.

0:21:17.600 --> 0:21:22.119
<v Speaker 3>We can speed up governance. That's our only option. Governance

0:21:22.400 --> 0:21:26.040
<v Speaker 3>is the seatbelts in a car. It's the speed limits.

0:21:26.119 --> 0:21:28.919
<v Speaker 3>It's knowing there's a doometer. We wouldn't get in a

0:21:28.960 --> 0:21:32.080
<v Speaker 3>car if we wouldn't if we weren't sure that we

0:21:32.080 --> 0:21:32.359
<v Speaker 3>had these.

0:21:32.520 --> 0:21:37.160
<v Speaker 1>The industry bought seatbelts literally until the debts piled up.

0:21:37.760 --> 0:21:40.040
<v Speaker 1>I mean, are we going to have the industry fight

0:21:40.160 --> 0:21:45.320
<v Speaker 1>regulation literally until there are what we have right now

0:21:45.320 --> 0:21:48.920
<v Speaker 1>with social media, a pile up of lawsuits that hey,

0:21:48.960 --> 0:21:50.400
<v Speaker 1>they made a defective product.

0:21:51.040 --> 0:21:54.000
<v Speaker 3>Well that's why we need to have more of alignment

0:21:54.080 --> 0:21:57.920
<v Speaker 3>on what these best practices are, What are the safeguards

0:21:57.920 --> 0:22:00.560
<v Speaker 3>that everyone should be adopting when they're you using AI,

0:22:00.680 --> 0:22:03.199
<v Speaker 3>because then we know what it looks like to be

0:22:03.240 --> 0:22:06.440
<v Speaker 3>doing this well. I think at the end of the day,

0:22:06.800 --> 0:22:10.680
<v Speaker 3>we've seen time and again that people will not adopt innovation.

0:22:11.200 --> 0:22:13.560
<v Speaker 3>I mean, look at the ROI on investment. You see

0:22:13.800 --> 0:22:17.560
<v Speaker 3>tremendous investment in AI. We're not seeing the ROI for

0:22:17.720 --> 0:22:21.320
<v Speaker 3>many companies, and I'm very convinced, and the data show

0:22:21.600 --> 0:22:24.040
<v Speaker 3>it's because they don't have governance in place and because

0:22:24.080 --> 0:22:27.680
<v Speaker 3>they haven't taken the time to deploy AI literacy.

0:22:28.320 --> 0:22:31.320
<v Speaker 1>Is there anything to be learned as as we try

0:22:31.320 --> 0:22:34.360
<v Speaker 1>to catch up on governments governance with AI, about.

0:22:34.160 --> 0:22:36.320
<v Speaker 2>What we didn't do with social media?

0:22:37.960 --> 0:22:39.920
<v Speaker 3>Yeah, there's a lot of lessons to be learned. Where

0:22:39.960 --> 0:22:44.800
<v Speaker 3>to begin, We need to first of all understand the

0:22:44.840 --> 0:22:50.320
<v Speaker 3>pace we are. We moved quickly with social media. I

0:22:50.320 --> 0:22:54.879
<v Speaker 3>think that innovation was adopted with record speed. For our

0:22:55.359 --> 0:22:58.879
<v Speaker 3>past innovations, usually it takes decades for adoption. That happened

0:22:58.880 --> 0:23:01.359
<v Speaker 3>in a pretty integrated way within a decade. Within less

0:23:01.400 --> 0:23:05.119
<v Speaker 3>than that, AI will continue to scale at a pace

0:23:05.240 --> 0:23:08.760
<v Speaker 3>that is exponentially higher than that, So I think any

0:23:08.800 --> 0:23:14.080
<v Speaker 3>comfort people can take in waiting should be disabuse. There's

0:23:14.160 --> 0:23:18.919
<v Speaker 3>no opportunity to wait. AI is being used in our

0:23:19.040 --> 0:23:22.520
<v Speaker 3>daily life every day. It is being used in our workplaces,

0:23:22.800 --> 0:23:26.400
<v Speaker 3>and so there needs to be a clear path towards

0:23:26.480 --> 0:23:30.160
<v Speaker 3>ensuring its safety and ensuring there's more agency, more people

0:23:30.280 --> 0:23:33.160
<v Speaker 3>understand why and how to use AI. I mean, we're

0:23:33.160 --> 0:23:36.679
<v Speaker 3>seeing these very problematic adoption gaps, not just across the

0:23:36.720 --> 0:23:39.760
<v Speaker 3>fifty percent of the US that is not interested in

0:23:40.160 --> 0:23:43.879
<v Speaker 3>adopting AI, but we see a gender gap in age gap,

0:23:44.160 --> 0:23:48.399
<v Speaker 3>education and wealth, and even a regional gap where in

0:23:48.800 --> 0:23:51.880
<v Speaker 3>the middle of the country there's more anxiety towards AI

0:23:52.000 --> 0:23:55.520
<v Speaker 3>than on the coasts. These are all understandable. It's communities

0:23:55.560 --> 0:23:58.040
<v Speaker 3>that have deep concerns that need to be heard and

0:23:58.080 --> 0:23:59.960
<v Speaker 3>addressed before they're going to be willing to use AIA.

0:24:02.520 --> 0:24:04.399
<v Speaker 2>Have you had any luck with the AI.

0:24:05.720 --> 0:24:09.520
<v Speaker 1>Platform companies in understanding what they have or do you

0:24:09.560 --> 0:24:11.080
<v Speaker 1>feel like they're just in a hurried anyday.

0:24:12.600 --> 0:24:15.400
<v Speaker 3>I think there's several conversations going on right now. There's

0:24:15.400 --> 0:24:20.160
<v Speaker 3>certainly that competition once amongst one another, with amongst.

0:24:21.680 --> 0:24:28.640
<v Speaker 1>Us open AYE trial, it's not reassuring to watch all

0:24:28.680 --> 0:24:31.360
<v Speaker 1>of this sort of dirt get circulated out, but you're

0:24:31.359 --> 0:24:34.159
<v Speaker 1>just sitting there going it's just a bunch.

0:24:34.040 --> 0:24:35.479
<v Speaker 2>Of people trying to make more money off of us.

0:24:35.520 --> 0:24:38.920
<v Speaker 1>Again, this doesn't feel like anybody's actually been concerned about

0:24:38.920 --> 0:24:40.240
<v Speaker 1>what the technology.

0:24:39.760 --> 0:24:40.679
<v Speaker 2>Is going to do to the public.

0:24:41.520 --> 0:24:43.320
<v Speaker 3>Well, I think the more we can do to empower

0:24:43.359 --> 0:24:48.800
<v Speaker 3>the public, policymakers, lawyers to understand what good outcomes look like,

0:24:49.440 --> 0:24:53.000
<v Speaker 3>the better off we are. I think you know it's in.

0:24:53.080 --> 0:24:53.399
<v Speaker 2>You're right.

0:24:53.560 --> 0:24:56.200
<v Speaker 3>It's an interesting look into what's happening under the hood.

0:24:56.720 --> 0:25:00.240
<v Speaker 3>But again, people have agency here and there's many yders

0:25:00.280 --> 0:25:04.160
<v Speaker 3>across the spectrum. Journalists have brought it to account many

0:25:04.200 --> 0:25:07.200
<v Speaker 3>of the AI use cases that have been problematic, and

0:25:07.280 --> 0:25:10.000
<v Speaker 3>that's where you see changes. So the more there's clarity

0:25:10.119 --> 0:25:12.760
<v Speaker 3>in what good looks like and the more we're able

0:25:12.800 --> 0:25:16.760
<v Speaker 3>to pressure test what some of these problematic outcomes look like,

0:25:17.440 --> 0:25:20.480
<v Speaker 3>the more we can have our expectations in place. But again,

0:25:20.520 --> 0:25:24.119
<v Speaker 3>I wouldn't lose sight of some of the forces, the

0:25:24.119 --> 0:25:27.639
<v Speaker 3>market forces we have in place, whether it's ROI or

0:25:27.720 --> 0:25:30.400
<v Speaker 3>the litigation we're seeing increasingly in the courts. Last year

0:25:30.440 --> 0:25:34.480
<v Speaker 3>there was a the AI Index report. They said there

0:25:34.560 --> 0:25:37.800
<v Speaker 3>was a six times increase in litigation over sixty years.

0:25:37.960 --> 0:25:40.520
<v Speaker 3>I'm curious to see how much exponentially higher that is.

0:25:40.600 --> 0:25:43.719
<v Speaker 1>Now, all right, let's try to let's try to end on.

0:25:44.240 --> 0:25:48.520
<v Speaker 1>Give me some best practices of entities out there that

0:25:49.119 --> 0:25:50.960
<v Speaker 1>do seem to be prioritizing governments.

0:25:51.560 --> 0:25:57.160
<v Speaker 3>When you're seeing governance, there's at least five overlapping indicators.

0:25:57.240 --> 0:26:01.679
<v Speaker 3>There's visibility. Most companies have not done a survey to

0:26:01.800 --> 0:26:05.080
<v Speaker 3>understand where they are using AI across enterprise.

0:26:06.040 --> 0:26:09.760
<v Speaker 1>You think there's some companies their CEO doesn't even know where, yeah,

0:26:09.960 --> 0:26:10.920
<v Speaker 1>AI is being deployed.

0:26:11.000 --> 0:26:14.560
<v Speaker 3>It was a very problematic study out a year ago

0:26:14.720 --> 0:26:18.360
<v Speaker 3>where they looked for at HR uses of AI, which

0:26:18.400 --> 0:26:20.480
<v Speaker 3>is one of the most predominant use cases of AI.

0:26:21.359 --> 0:26:24.200
<v Speaker 3>They surveyed the global companies and about eighty eight percent

0:26:24.240 --> 0:26:27.520
<v Speaker 3>of the chief HR officers confirm their using AI in

0:26:27.720 --> 0:26:31.600
<v Speaker 3>HR functions. At those same companies, about sixty two sixty

0:26:31.640 --> 0:26:34.720
<v Speaker 3>four percent of CEOs indicated they were using AI and

0:26:34.760 --> 0:26:39.639
<v Speaker 3>their HAAR functions. Forty eight percent of general counsels indicated

0:26:39.760 --> 0:26:43.320
<v Speaker 3>the same. So, yes, I think there is a huge

0:26:43.440 --> 0:26:47.119
<v Speaker 3>problem of people not knowing, not having visibility into how.

0:26:46.960 --> 0:26:48.800
<v Speaker 2>AIS is inside their own.

0:26:49.119 --> 0:26:51.840
<v Speaker 3>Inside their own companies. We can do this in our

0:26:51.840 --> 0:26:55.760
<v Speaker 3>own homes too. Second of all, you have to have accountability.

0:26:56.080 --> 0:26:58.240
<v Speaker 3>You have to have someone in your C suite who

0:26:58.280 --> 0:27:00.879
<v Speaker 3>cares about this, who takes ownership of this, who make

0:27:00.920 --> 0:27:04.600
<v Speaker 3>sure that there's the budget. But even equally important is

0:27:04.640 --> 0:27:07.720
<v Speaker 3>that there's alignment across dvice. Too many people think that

0:27:07.800 --> 0:27:10.600
<v Speaker 3>this is the innovations of the past where you can

0:27:10.880 --> 0:27:13.280
<v Speaker 3>assign it to one department, and AI doesn't work that way.

0:27:13.320 --> 0:27:15.600
<v Speaker 3>AI is in every news media.

0:27:15.400 --> 0:27:17.800
<v Speaker 1>Will have a digital team. It's like all media is

0:27:17.800 --> 0:27:21.600
<v Speaker 1>on digital. I remember thinking that back then. So, yeah,

0:27:21.600 --> 0:27:25.040
<v Speaker 1>there's such an AI team. It's like saying you're going

0:27:25.080 --> 0:27:26.440
<v Speaker 1>to have a deskot you.

0:27:26.440 --> 0:27:29.320
<v Speaker 3>Got it, you got it. You have to have that

0:27:30.080 --> 0:27:34.199
<v Speaker 3>C suite level buy in and interest. But then you

0:27:34.240 --> 0:27:36.600
<v Speaker 3>also need that because a lot of this is going

0:27:36.640 --> 0:27:39.360
<v Speaker 3>to play out in the front lines. Your employees, your

0:27:39.359 --> 0:27:43.400
<v Speaker 3>consumers are going to find some of the errors play out,

0:27:43.640 --> 0:27:45.440
<v Speaker 3>and you need them to know who to report them

0:27:45.440 --> 0:27:47.840
<v Speaker 3>to and that it's safe to be reported up.

0:27:47.840 --> 0:27:52.160
<v Speaker 1>The play is the realistic first regulation, then just simply transparency.

0:27:53.119 --> 0:27:56.320
<v Speaker 3>Transparency. I think that's a complicated issue because it has

0:27:56.359 --> 0:27:58.359
<v Speaker 3>to be stated in such a way that could be

0:27:58.680 --> 0:27:59.920
<v Speaker 3>understood meaningfully.

0:28:00.160 --> 0:28:01.200
<v Speaker 2>Take surveillance pricing.

0:28:02.080 --> 0:28:04.120
<v Speaker 1>I know New York State passed the law about surveillance

0:28:04.160 --> 0:28:07.200
<v Speaker 1>pricing that if it was done with AI, it had

0:28:07.240 --> 0:28:10.320
<v Speaker 1>to be set how to say, so New York does

0:28:10.320 --> 0:28:13.760
<v Speaker 1>this regulation. But even if you got to know it

0:28:13.880 --> 0:28:16.320
<v Speaker 1>was a good example to wash the post, it had

0:28:16.359 --> 0:28:20.200
<v Speaker 1>to put a little disclaimer that they were using surveillance

0:28:20.200 --> 0:28:23.720
<v Speaker 1>pricing on their subscription services. And somebody who lived in

0:28:23.720 --> 0:28:27.520
<v Speaker 1>Oklahoma got that warning even though Oklahoma didn't have that law.

0:28:27.640 --> 0:28:28.760
<v Speaker 2>New York State has that law.

0:28:29.119 --> 0:28:30.960
<v Speaker 1>But it felt like, well, all right, that's a case

0:28:31.000 --> 0:28:34.600
<v Speaker 1>where transparency at least is a way to at least

0:28:34.640 --> 0:28:35.840
<v Speaker 1>give the consumers something.

0:28:36.240 --> 0:28:39.800
<v Speaker 3>Transparency is a start, but we don't want the human

0:28:39.880 --> 0:28:42.560
<v Speaker 3>fatigue of checking I'll accept the cookies so I can

0:28:42.600 --> 0:28:44.600
<v Speaker 3>get quickly to the website of where I want to go,

0:28:45.280 --> 0:28:48.160
<v Speaker 3>And we don't want it to be written in a

0:28:48.200 --> 0:28:51.960
<v Speaker 3>way that they can't understand. So I think absolutely transparency

0:28:52.040 --> 0:28:54.960
<v Speaker 3>is key. Where are you using AI? What have you

0:28:55.040 --> 0:28:57.479
<v Speaker 3>tested for? I mean, let's talk about in the medical

0:28:57.560 --> 0:28:59.520
<v Speaker 3>use cases, which are some of the most exciting use

0:28:59.560 --> 0:29:01.640
<v Speaker 3>cases of it. If you're going to tell me that

0:29:01.680 --> 0:29:05.080
<v Speaker 3>your cancer detection is eighty eight percent successful. I need

0:29:05.080 --> 0:29:07.280
<v Speaker 3>to know for whom I need to know if that

0:29:07.400 --> 0:29:10.080
<v Speaker 3>is true for the patients that you're talking to. Was

0:29:10.200 --> 0:29:14.400
<v Speaker 3>were they appropriately represented in the satisfaction rate and the

0:29:14.440 --> 0:29:18.040
<v Speaker 3>success rate of that product? For whom could this fail?

0:29:19.280 --> 0:29:21.200
<v Speaker 1>How are we going to get most regulation due to

0:29:21.280 --> 0:29:23.200
<v Speaker 1>court fights rather than due to legislation?

0:29:23.560 --> 0:29:26.200
<v Speaker 2>Is that true? Is that real mean? And what that

0:29:26.240 --> 0:29:27.440
<v Speaker 2>means is civil litigation.

0:29:27.720 --> 0:29:30.200
<v Speaker 3>I think in the short term there's a lot happening

0:29:30.200 --> 0:29:32.560
<v Speaker 3>in the courts that people should not overlook, a lot

0:29:32.600 --> 0:29:36.760
<v Speaker 3>that will impact their use, their rights, their company. That

0:29:36.800 --> 0:29:38.880
<v Speaker 3>if they are not keeping their eye on what's happening

0:29:38.920 --> 0:29:42.120
<v Speaker 3>across the country and frankly across the globe in the courthouses,

0:29:42.160 --> 0:29:44.640
<v Speaker 3>they're missing a lot of the liabilities they will be

0:29:44.640 --> 0:29:47.040
<v Speaker 3>walking into if they do not have good governance in place.

0:29:47.400 --> 0:29:49.800
<v Speaker 1>Well, I'll say this, if you're a legislator and you're

0:29:49.840 --> 0:29:54.960
<v Speaker 1>watching this, get our booked, because it does sort of

0:29:55.080 --> 0:29:58.920
<v Speaker 1>in a very thought in a good way, layout sort

0:29:58.920 --> 0:30:02.760
<v Speaker 1>of how garden You're trying to figure out what grdros

0:30:02.800 --> 0:30:05.160
<v Speaker 1>to build and I feel like your book does sort

0:30:05.160 --> 0:30:05.600
<v Speaker 1>of layout.

0:30:06.040 --> 0:30:07.840
<v Speaker 2>Okay, if you want to do this, Cardrail, this is

0:30:07.880 --> 0:30:10.720
<v Speaker 2>the way to do it. Thank you, check Ary, appreciate.

0:30:10.320 --> 0:30:12.800
<v Speaker 3>You saying that, thank you so much for having me.

0:30:15.440 --> 0:30:15.640
<v Speaker 2>Well.

0:30:15.640 --> 0:30:17.600
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<v Speaker 2>Toodcast.

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<v Speaker 1>Shipstation dot com use the code toodcast. All right, you

0:32:09.080 --> 0:32:13.320
<v Speaker 1>have transitioned from governments into the private sector. Still in

0:32:13.360 --> 0:32:17.360
<v Speaker 1>the AI space, let's talk about AI security, especially we've

0:32:17.360 --> 0:32:20.200
<v Speaker 1>got this China summit coming up between She and Trump

0:32:20.840 --> 0:32:24.200
<v Speaker 1>and apparently AI governance is now going to be on

0:32:24.320 --> 0:32:29.080
<v Speaker 1>the agenda. So let's start there. What should global AI

0:32:29.160 --> 0:32:33.680
<v Speaker 1>governance look like between superpowers and how? And is nuclear

0:32:33.920 --> 0:32:37.640
<v Speaker 1>proliferation or non proliferation the model?

0:32:39.120 --> 0:32:41.560
<v Speaker 4>So, first of when we think about AI security, there's

0:32:41.560 --> 0:32:44.959
<v Speaker 4>really two lenses to think about it through. One is

0:32:45.320 --> 0:32:50.000
<v Speaker 4>the risk that AI brings, for example, in accelerating the

0:32:50.040 --> 0:32:52.320
<v Speaker 4>depth and speed of cyber attacks.

0:32:53.000 --> 0:32:55.560
<v Speaker 5>And the second is the risk of AI.

0:32:55.760 --> 0:32:58.640
<v Speaker 4>If models are not secure, if models can be poisoned

0:33:00.040 --> 0:33:02.800
<v Speaker 4>and of themselves. And then if they're embedded into whether

0:33:02.840 --> 0:33:05.240
<v Speaker 4>it's a decision about whether to loan somebody money or a.

0:33:05.240 --> 0:33:08.200
<v Speaker 5>Decision about we're in the electricity.

0:33:07.600 --> 0:33:12.960
<v Speaker 4>Grid, thank you so much. One optimizes, then they bring

0:33:13.000 --> 0:33:14.560
<v Speaker 4>additional risks. So we think about it in.

0:33:14.520 --> 0:33:15.840
<v Speaker 5>Both of those lenses.

0:33:16.520 --> 0:33:19.800
<v Speaker 4>And to your point about global governance, it's the question

0:33:19.840 --> 0:33:23.040
<v Speaker 4>we used to have often about cyber governance.

0:33:23.360 --> 0:33:25.960
<v Speaker 5>What are the rules in the room? How can countries

0:33:26.080 --> 0:33:27.520
<v Speaker 5>use these dual use technologies.

0:33:27.560 --> 0:33:31.240
<v Speaker 4>They're both defensive they help us secure infrastructure, for example,

0:33:31.800 --> 0:33:35.160
<v Speaker 4>and they're offensive they help between countries. They may be

0:33:35.280 --> 0:33:37.600
<v Speaker 4>used offensively in the context of a crisis or conflict

0:33:37.600 --> 0:33:40.520
<v Speaker 4>to destabilize infrastructure. So what should the rules that they

0:33:40.520 --> 0:33:43.840
<v Speaker 4>will be when fundamentally there are no borders of the rules.

0:33:43.880 --> 0:33:46.320
<v Speaker 1>Well, it's similar to nukes, right, we had nuclear energy

0:33:46.600 --> 0:33:49.760
<v Speaker 1>and one set of rules versus nuclear weapons, right, positive

0:33:49.800 --> 0:33:50.720
<v Speaker 1>and negative.

0:33:52.000 --> 0:33:55.440
<v Speaker 4>It's very different in that it is a private sector

0:33:55.480 --> 0:34:00.760
<v Speaker 4>developed technology that's broadly available, versus nukes that are primarily

0:34:00.800 --> 0:34:03.720
<v Speaker 4>developed by governments with very strict rules around.

0:34:03.760 --> 0:34:05.880
<v Speaker 1>For the funny you say that, I've talked to I

0:34:05.880 --> 0:34:10.920
<v Speaker 1>have a retired general friend of mine who is obsessed

0:34:11.000 --> 0:34:14.840
<v Speaker 1>with the fact that he thinks AI never should have

0:34:14.920 --> 0:34:18.120
<v Speaker 1>been allowed to be developed with the private sector first,

0:34:18.120 --> 0:34:22.160
<v Speaker 1>that there always should have been like with nuclear technology,

0:34:22.440 --> 0:34:26.319
<v Speaker 1>where it was essentially government driven with academic research and

0:34:26.400 --> 0:34:29.440
<v Speaker 1>sort of bringing the private sector into the government sphere

0:34:29.840 --> 0:34:32.960
<v Speaker 1>and the internet itself private sector into the government sphere.

0:34:34.120 --> 0:34:35.960
<v Speaker 2>It's too late to go there now with AI. But

0:34:36.080 --> 0:34:36.720
<v Speaker 2>was that a mistake?

0:34:38.080 --> 0:34:38.319
<v Speaker 5>You know?

0:34:38.360 --> 0:34:42.560
<v Speaker 4>The power of the American innovation system is that we

0:34:42.640 --> 0:34:48.040
<v Speaker 4>have the laws, the financial markets, and the investment in

0:34:48.120 --> 0:34:49.799
<v Speaker 4>R and D that happens in the private sector. That

0:34:49.880 --> 0:34:53.719
<v Speaker 4>means technology, drug R and D, drugs is primarily coming

0:34:53.719 --> 0:34:57.600
<v Speaker 4>out of the private sector. Yes, there's some investment from government,

0:34:57.640 --> 0:34:59.680
<v Speaker 4>but it's mostly there. So I think the strength of

0:34:59.680 --> 0:35:03.720
<v Speaker 4>our system is that innovation comes out of the private sector.

0:35:03.880 --> 0:35:07.319
<v Speaker 5>So should have could a? I think it's just it's it.

0:35:08.360 --> 0:35:10.400
<v Speaker 2>Doesn't matter what the philosophy is.

0:35:11.040 --> 0:35:15.040
<v Speaker 6>We are where we are, so so let's talk about

0:35:15.320 --> 0:35:19.879
<v Speaker 6>you talk about cyber and a global and you try

0:35:20.000 --> 0:35:22.120
<v Speaker 6>you develop something in the Biden.

0:35:22.120 --> 0:35:26.440
<v Speaker 2>Administration having to do with at least coming to a

0:35:26.480 --> 0:35:27.920
<v Speaker 2>collective agreement on rants.

0:35:28.920 --> 0:35:32.960
<v Speaker 1>Explained absolutely, because it is gold apply for AI, right, it's.

0:35:32.800 --> 0:35:35.840
<v Speaker 5>An interesting approach. You're right to apply to AI. You know.

0:35:35.880 --> 0:35:37.640
<v Speaker 4>So in the past we would often think about the

0:35:37.680 --> 0:35:40.879
<v Speaker 4>big risk of cyber as espionage. We talked for years

0:35:40.920 --> 0:35:44.399
<v Speaker 4>about how China was growing at strategic technology sector by

0:35:44.480 --> 0:35:48.719
<v Speaker 4>stealing intellectual property from America. And you know, governments have

0:35:48.760 --> 0:35:51.120
<v Speaker 4>been trying to steal each other's secrets.

0:35:51.040 --> 0:35:54.319
<v Speaker 5>Whether as human assets is five. But if we say

0:35:54.360 --> 0:35:56.320
<v Speaker 5>that moved to digital because it's so much easier. You

0:35:56.320 --> 0:35:58.279
<v Speaker 5>don't have to get a guy into a as old

0:35:58.280 --> 0:35:58.960
<v Speaker 5>as a country.

0:35:59.120 --> 0:36:01.520
<v Speaker 2>Bad borders on countries, it exactly.

0:36:01.640 --> 0:36:04.680
<v Speaker 1>I'm sure the feudal lords were also spying on each other,

0:36:04.960 --> 0:36:05.360
<v Speaker 1>and it's.

0:36:05.200 --> 0:36:06.560
<v Speaker 5>So much easier in cyberspace.

0:36:06.640 --> 0:36:08.960
<v Speaker 4>You don't have to get a human past a fingerprint

0:36:09.040 --> 0:36:12.000
<v Speaker 4>check into a country. So that was the way we

0:36:12.040 --> 0:36:16.280
<v Speaker 4>looked at it. It changed with the advent of two things.

0:36:16.680 --> 0:36:21.440
<v Speaker 4>One is cryptocurrency and the second a criminal ecosystem that

0:36:21.600 --> 0:36:27.960
<v Speaker 4>essentially built out cyber tools and that enable them to

0:36:28.080 --> 0:36:33.040
<v Speaker 4>use those tools to disrupt companies, infrastructure, hospitals around the

0:36:33.040 --> 0:36:33.880
<v Speaker 4>world and get.

0:36:33.760 --> 0:36:34.520
<v Speaker 5>Paid for it easily.

0:36:34.640 --> 0:36:37.640
<v Speaker 2>It's the so called dark web, the dark.

0:36:37.480 --> 0:36:41.600
<v Speaker 4>Web plus the financing right, because the dark web is

0:36:41.640 --> 0:36:45.120
<v Speaker 4>a way that people can just communicate outside the formal

0:36:45.160 --> 0:36:49.680
<v Speaker 4>Internet ecosystem. Essentially, as you know, every IP address has

0:36:49.760 --> 0:36:52.239
<v Speaker 4>a matching mean that makes it easier for us to

0:36:52.280 --> 0:36:55.319
<v Speaker 4>find Amazon dot Com without necessarily knowing its Internet.

0:36:54.960 --> 0:36:57.200
<v Speaker 2>For right, everybody's address exactly right.

0:36:57.280 --> 0:36:59.719
<v Speaker 4>On the Internet dark web, there's just the addresses without

0:36:59.760 --> 0:37:01.600
<v Speaker 4>the to who it is, so people have to know

0:37:01.600 --> 0:37:05.680
<v Speaker 4>where they're going. What changed in ransomware, to your point,

0:37:05.800 --> 0:37:08.160
<v Speaker 4>was that you had a criminal ecosystem that now had

0:37:08.160 --> 0:37:11.799
<v Speaker 4>a way to move money outside traditional banking systems. And

0:37:11.840 --> 0:37:14.800
<v Speaker 4>in many ways, while there are rules around cryptocurrency anti

0:37:14.800 --> 0:37:18.480
<v Speaker 4>money laundering done by the Financial Action Task Force, they

0:37:18.480 --> 0:37:21.799
<v Speaker 4>are not implemented around the world for various reasons. So

0:37:21.880 --> 0:37:24.440
<v Speaker 4>as a result, you would have these safe and some

0:37:24.520 --> 0:37:28.320
<v Speaker 4>countries provided safe haven. So Russia, for example, looked away

0:37:28.640 --> 0:37:33.480
<v Speaker 4>or quietly enabled criminals with some ties to their.

0:37:35.000 --> 0:37:35.200
<v Speaker 2>Korea.

0:37:35.520 --> 0:37:39.800
<v Speaker 1>There was a whole sort of access of maybe unfriendly

0:37:39.840 --> 0:37:40.440
<v Speaker 1>countries to.

0:37:40.400 --> 0:37:43.240
<v Speaker 4>The West that were doing this right exactly, and those

0:37:43.320 --> 0:37:46.800
<v Speaker 4>actors ended up disrupting infrastructure to get paid a ransom,

0:37:47.200 --> 0:37:49.240
<v Speaker 4>and in many cases, like when you think about Britain's

0:37:49.360 --> 0:37:52.480
<v Speaker 4>National Health system, disrupted the operations of hospitals.

0:37:52.520 --> 0:37:54.080
<v Speaker 5>So to them, they're ready to pay.

0:37:54.800 --> 0:37:58.400
<v Speaker 4>So the debate became while for one entity paying a

0:37:58.480 --> 0:38:00.880
<v Speaker 4>ransom could be the fastest way to get back online,

0:38:00.960 --> 0:38:05.680
<v Speaker 4>every payment fuels the ecosystem, right, So overall we're enabling

0:38:05.719 --> 0:38:08.000
<v Speaker 4>these attackers to do more and more of these attacks.

0:38:08.040 --> 0:38:12.200
<v Speaker 4>It's essentially incentivizing them. So in the last administration, we

0:38:12.320 --> 0:38:15.080
<v Speaker 4>formed something called the Counter Ransom Initiative. We said, we

0:38:15.160 --> 0:38:18.080
<v Speaker 4>need a way to coordinate among countries to put it

0:38:18.120 --> 0:38:21.439
<v Speaker 4>in place the practices, getting countries to implement anti monitor

0:38:21.800 --> 0:38:27.120
<v Speaker 4>laundering rules for cryptocurrency, disrupting the operations of these ransomware attackers,

0:38:27.440 --> 0:38:30.640
<v Speaker 4>and fundamentally in each of our countries, trying to put

0:38:30.719 --> 0:38:33.160
<v Speaker 4>in place policies to not allow ransoms.

0:38:34.320 --> 0:38:36.839
<v Speaker 1>How hard is it though, to get I mean, does

0:38:36.880 --> 0:38:39.000
<v Speaker 1>that need to be like a again? Does that look

0:38:39.080 --> 0:38:42.919
<v Speaker 1>like a treaty like we have with nuclear weapons and

0:38:43.000 --> 0:38:44.920
<v Speaker 1>what we have with biological weapons?

0:38:45.000 --> 0:38:47.440
<v Speaker 2>Is that what this would eventually look like?

0:38:48.040 --> 0:38:49.480
<v Speaker 5>So it's a really good question.

0:38:50.280 --> 0:38:54.000
<v Speaker 4>On the positive side, we formed the Counter Ransom Innership

0:38:54.000 --> 0:38:56.720
<v Speaker 4>that grew to eighty countries, and we had working groups

0:38:56.760 --> 0:38:59.879
<v Speaker 4>that did things like countries sharing with each other threat

0:38:59.880 --> 0:39:02.200
<v Speaker 4>and so if a particular technique was used against the

0:39:02.239 --> 0:39:05.200
<v Speaker 4>hospital in the UK, that was shared across the governments

0:39:05.520 --> 0:39:08.600
<v Speaker 4>so that another country would then inform their hospitals keep

0:39:08.600 --> 0:39:11.480
<v Speaker 4>an eye out for that, protect against this. In that way,

0:39:11.719 --> 0:39:14.200
<v Speaker 4>that was successful because it was sensitive sharing and it

0:39:14.320 --> 0:39:16.600
<v Speaker 4>expanded it to more countries than had ever been shared

0:39:16.600 --> 0:39:21.880
<v Speaker 4>together before. A second success was in training countries and

0:39:22.000 --> 0:39:26.960
<v Speaker 4>how to look for cryptocurrency money laundering. Cryptocurrency enables cheaper

0:39:27.000 --> 0:39:29.640
<v Speaker 4>and faster transactions for all kinds of people, people sending

0:39:29.640 --> 0:39:34.200
<v Speaker 4>remittances back home, for example, but it also enables payment

0:39:34.280 --> 0:39:37.520
<v Speaker 4>of ransoms quickly. So we among different countries who had

0:39:37.520 --> 0:39:41.600
<v Speaker 4>more sophisticated systems, we trained other countries, and we could

0:39:41.600 --> 0:39:44.759
<v Speaker 4>also use more offensive capabilities to say if a given

0:39:44.800 --> 0:39:46.880
<v Speaker 4>country is not acting, it can be put on a

0:39:46.880 --> 0:39:49.440
<v Speaker 4>gray list, to say other countries say we're not going

0:39:49.480 --> 0:39:51.480
<v Speaker 4>to do business with you, because you really need to.

0:39:53.560 --> 0:39:59.400
<v Speaker 4>The stick is essentially doing routine business transactions, not in cryptocurrency.

0:40:00.080 --> 0:40:02.600
<v Speaker 4>Nobody wants to be on a grade list which says

0:40:02.640 --> 0:40:05.000
<v Speaker 4>they're not following the rules of anti money laundering because

0:40:05.000 --> 0:40:09.640
<v Speaker 4>it puts their entire financial system under question. As well

0:40:09.680 --> 0:40:12.880
<v Speaker 4>as another stick, which is sanctioning some of these exchanges

0:40:12.880 --> 0:40:15.960
<v Speaker 4>that were moving a preponderance of illicit money. One was

0:40:15.960 --> 0:40:18.600
<v Speaker 4>called Tornado dot Cash, and we did the first ever

0:40:18.680 --> 0:40:21.200
<v Speaker 4>sanctioning of that entity to say.

0:40:21.040 --> 0:40:23.440
<v Speaker 5>We're going to bring the traditional rules.

0:40:23.040 --> 0:40:27.360
<v Speaker 4>Of enforcing the rules for banks to cryptocurrency virtual asset

0:40:27.400 --> 0:40:30.560
<v Speaker 4>service providers. So we extended the traditional rules for fiat

0:40:30.600 --> 0:40:33.200
<v Speaker 4>currency to cryptocurrency. So that's where it worked.

0:40:34.400 --> 0:40:35.560
<v Speaker 2>Where didn't it work yet.

0:40:35.560 --> 0:40:37.080
<v Speaker 4>And I guess actually a third one where it worked

0:40:37.160 --> 0:40:39.880
<v Speaker 4>is the governments agreed that no governments would pay ransoms.

0:40:40.200 --> 0:40:40.920
<v Speaker 5>That was the third way.

0:40:40.960 --> 0:40:43.319
<v Speaker 4>We got agreement and a public statement saying we all agree,

0:40:43.320 --> 0:40:45.080
<v Speaker 4>And the public statement was important because then we called

0:40:45.080 --> 0:40:50.080
<v Speaker 4>ourselves accountable. Where we had more trouble was a fierce

0:40:50.120 --> 0:40:57.480
<v Speaker 4>debate about what countries do to actually disincentivize ransom payments

0:40:57.480 --> 0:41:00.520
<v Speaker 4>by private sector actors. In the US, it was a

0:41:00.560 --> 0:41:04.200
<v Speaker 4>fierce policy debate. What we wanted to do was say

0:41:04.719 --> 0:41:07.839
<v Speaker 4>we would announce in six months that ransom payments were

0:41:07.840 --> 0:41:11.960
<v Speaker 4>not permitted unless a permission was requested from the Department

0:41:11.960 --> 0:41:14.279
<v Speaker 4>of Justice for a national security emergency.

0:41:13.840 --> 0:41:14.680
<v Speaker 2>Could be illegal.

0:41:15.600 --> 0:41:18.320
<v Speaker 5>It would be yes, essentially, so I paid.

0:41:18.200 --> 0:41:21.120
<v Speaker 1>A ransom, charges would be brought against the person that

0:41:21.160 --> 0:41:21.760
<v Speaker 1>paid the ransom.

0:41:21.840 --> 0:41:23.920
<v Speaker 4>Or if you wanted to pay a ransom, you'd have

0:41:23.960 --> 0:41:25.680
<v Speaker 4>to come to the Department of Justice and they might

0:41:25.680 --> 0:41:28.239
<v Speaker 4>see that. For example, if a hospital wanted to pay

0:41:28.239 --> 0:41:30.799
<v Speaker 4>a ransom. What we wanted to do the goal of

0:41:30.840 --> 0:41:34.279
<v Speaker 4>this was not only to disincentivize paying ransoms, but to

0:41:34.440 --> 0:41:39.320
<v Speaker 4>incentivize putting in place the cybersecurity practices that enabled entities

0:41:39.360 --> 0:41:41.359
<v Speaker 4>to recover without paying a ransom. What do I mean

0:41:41.520 --> 0:41:44.120
<v Speaker 4>if you have a good backup, if you've encrypted your

0:41:44.160 --> 0:41:46.319
<v Speaker 4>data so even if the attackers get it, they can't

0:41:46.400 --> 0:41:48.040
<v Speaker 4>use it to blackmail you, that they have a bunch

0:41:48.080 --> 0:41:52.160
<v Speaker 4>of sensitive medical information or your client's wire.

0:41:51.920 --> 0:41:53.240
<v Speaker 5>Instructions that's sensitive.

0:41:53.480 --> 0:41:57.840
<v Speaker 4>So a few practices like that help a company recover

0:41:58.080 --> 0:41:59.400
<v Speaker 4>without having to pay a ransom.

0:41:59.400 --> 0:42:00.359
<v Speaker 5>And what we want to.

0:42:00.320 --> 0:42:04.080
<v Speaker 4>Do was essentially say, Okay, in six months, the easy

0:42:04.120 --> 0:42:05.760
<v Speaker 4>out of a ransom payment is going away.

0:42:05.960 --> 0:42:08.000
<v Speaker 5>Come on, folks, do what you need to do so

0:42:08.040 --> 0:42:09.319
<v Speaker 5>you can recover without.

0:42:09.000 --> 0:42:09.719
<v Speaker 2>It, So.

0:42:11.280 --> 0:42:14.200
<v Speaker 1>That puts the burden on the company to have as

0:42:14.360 --> 0:42:16.880
<v Speaker 1>most the most up to date security possible.

0:42:19.600 --> 0:42:25.040
<v Speaker 2>In theory, I get it. On the other hand, you know.

0:42:25.200 --> 0:42:29.440
<v Speaker 1>Is it should should that fall on the company or

0:42:29.440 --> 0:42:31.960
<v Speaker 1>should that fall on the governments?

0:42:33.960 --> 0:42:37.800
<v Speaker 4>That is one of the core policy debates in cybersecurity.

0:42:38.360 --> 0:42:41.440
<v Speaker 4>Now to that point, there was responsibility for each and

0:42:41.440 --> 0:42:43.480
<v Speaker 4>I think when you think about the physical world, to

0:42:43.520 --> 0:42:46.120
<v Speaker 4>your point, when you walk into a large corporate building,

0:42:46.520 --> 0:42:49.520
<v Speaker 4>there are guards there that are paid for, you know,

0:42:49.560 --> 0:42:52.040
<v Speaker 4>by the owners of the building, but you then have

0:42:52.120 --> 0:42:54.839
<v Speaker 4>a police department if they're right, so you have both

0:42:54.880 --> 0:42:58.000
<v Speaker 4>with rules, and I think that's very similar in cyber space.

0:42:58.040 --> 0:43:00.839
<v Speaker 4>So in the case of governments, you know, we were

0:43:00.920 --> 0:43:05.160
<v Speaker 4>conducting at that point offensive cyber operations to disrupt the

0:43:05.160 --> 0:43:08.960
<v Speaker 4>infrastructure of these criminals around the world. We were working

0:43:08.960 --> 0:43:11.640
<v Speaker 4>with governments around there were a number of coordinated attempts

0:43:11.880 --> 0:43:14.719
<v Speaker 4>to arrest people. So we'd share quietly, you know, the

0:43:14.800 --> 0:43:16.760
<v Speaker 4>names of people and if they got on a plane,

0:43:16.760 --> 0:43:18.719
<v Speaker 4>they went on vacation, or they tried to you know,

0:43:18.880 --> 0:43:20.400
<v Speaker 4>enjoy their illicit gains.

0:43:20.080 --> 0:43:22.200
<v Speaker 5>In Duvine, you know, they'd be arrested.

0:43:22.320 --> 0:43:25.319
<v Speaker 4>Among the members of the counter ransomware initiative were law

0:43:25.400 --> 0:43:29.680
<v Speaker 4>enforcement cooperation and finally, government, like I said, created forums

0:43:29.760 --> 0:43:34.640
<v Speaker 4>like that for information sharing, released advisories, and took those steps.

0:43:34.680 --> 0:43:37.880
<v Speaker 4>But on the private sector side, there is the pretty

0:43:37.920 --> 0:43:41.640
<v Speaker 4>in this case, basic steps like have backups, encrypt your data,

0:43:41.840 --> 0:43:44.879
<v Speaker 4>make yourselves a harder target that when we think about

0:43:44.880 --> 0:43:46.319
<v Speaker 4>the physical world, is very.

0:43:46.280 --> 0:43:48.080
<v Speaker 5>Much the equivalent in the digital world.

0:43:48.520 --> 0:43:52.560
<v Speaker 1>Let's go back to so one of the one of

0:43:52.600 --> 0:43:56.960
<v Speaker 1>the reasons that the industry has fought regulation in these

0:43:57.000 --> 0:44:00.320
<v Speaker 1>early days of AI adoption has been with this idea

0:44:00.360 --> 0:44:04.319
<v Speaker 1>that we're in a race with China, and yet at

0:44:04.320 --> 0:44:09.080
<v Speaker 1>the same time that there's no cooperation on how governments

0:44:09.800 --> 0:44:14.520
<v Speaker 1>use for particularly how they weaponize AI. We could be

0:44:14.560 --> 0:44:20.200
<v Speaker 1>in a We've already seen some asymmetric warfare successes thanks

0:44:20.239 --> 0:44:24.239
<v Speaker 1>to AI for you know, essentially a smaller country being

0:44:24.280 --> 0:44:30.160
<v Speaker 1>able to you know, operate with the with the bigger countries.

0:44:31.840 --> 0:44:35.799
<v Speaker 1>What do you envision is realistic in trying to have

0:44:35.880 --> 0:44:40.480
<v Speaker 1>some sort of AI red funk between China and the

0:44:40.600 --> 0:44:42.799
<v Speaker 1>United States. I mean, is that what we're looking for here?

0:44:42.880 --> 0:44:45.239
<v Speaker 4>So first, let's unpack the race with China, because I

0:44:45.280 --> 0:44:47.480
<v Speaker 4>think you're right that term is used a lot, and

0:44:47.480 --> 0:44:50.000
<v Speaker 4>we should ask what does that really mean. So from

0:44:50.040 --> 0:44:52.880
<v Speaker 4>an AI perspective, there is AI that's helping in the

0:44:52.880 --> 0:44:54.040
<v Speaker 4>fields of drug discovery.

0:44:54.160 --> 0:44:56.440
<v Speaker 5>I mean they're currently drug trials. You can accelerate.

0:44:57.080 --> 0:45:00.160
<v Speaker 2>The should be a border there should be borderless. One

0:45:00.200 --> 0:45:02.120
<v Speaker 2>would think might competition.

0:45:01.680 --> 0:45:05.080
<v Speaker 4>Because today, unfortunately, there are more diseases than there are

0:45:05.760 --> 0:45:08.879
<v Speaker 4>vaccines for than there are drugs for. So that would

0:45:08.920 --> 0:45:10.719
<v Speaker 4>be something where if it brings down the cost of

0:45:10.760 --> 0:45:13.520
<v Speaker 4>drug production enables trialsity faster, that's a win for all

0:45:13.560 --> 0:45:13.879
<v Speaker 4>of us.

0:45:14.320 --> 0:45:16.200
<v Speaker 5>So in that case, I think the race is a

0:45:16.239 --> 0:45:17.640
<v Speaker 5>race that's arm in arm.

0:45:18.120 --> 0:45:20.200
<v Speaker 4>How do we make the most of this technology for

0:45:20.280 --> 0:45:26.040
<v Speaker 4>the benefit of mankind. Similarly, there's many kinds of positive

0:45:26.120 --> 0:45:29.520
<v Speaker 4>uses of AI. Frankly, there's positive use of AI for cybersecurity.

0:45:30.320 --> 0:45:35.000
<v Speaker 4>It's hard to build secure code. Using AII that's trained

0:45:35.000 --> 0:45:37.719
<v Speaker 4>on more secure code or on some malicious practices can

0:45:37.760 --> 0:45:41.319
<v Speaker 4>then help ensure that code is generated securely against known

0:45:41.360 --> 0:45:43.640
<v Speaker 4>threats and then can be tested as well before deployed.

0:45:43.680 --> 0:45:46.239
<v Speaker 5>That's again a win win for all of us.

0:45:48.280 --> 0:45:52.560
<v Speaker 4>There's the discussion of a race is essentially adoption of

0:45:52.600 --> 0:45:56.880
<v Speaker 4>the most capable AI in national security fields, for example,

0:45:57.320 --> 0:46:01.560
<v Speaker 4>in intelligence collection in for sample, in China, here's where

0:46:01.600 --> 0:46:05.000
<v Speaker 4>an authoritarian country has an edge over a democracy. China

0:46:05.080 --> 0:46:08.000
<v Speaker 4>has millions of cameras deployed around the country.

0:46:08.200 --> 0:46:10.040
<v Speaker 5>Chinese technology is deployed around the world.

0:46:10.080 --> 0:46:13.320
<v Speaker 1>They're going to probably surpass us on facial technology simply

0:46:13.400 --> 0:46:15.320
<v Speaker 1>because of their system of government.

0:46:15.160 --> 0:46:17.720
<v Speaker 4>Exactly, and I don't think we would trade our system

0:46:17.760 --> 0:46:20.359
<v Speaker 4>of government. On the other hand, let's recognize that an

0:46:20.400 --> 0:46:24.040
<v Speaker 4>American human spy traveling around the world is at greater

0:46:24.200 --> 0:46:29.799
<v Speaker 4>risk as China trains facial recognition models. Then a reverse case,

0:46:29.840 --> 0:46:32.719
<v Speaker 4>a Chinese spy would be because the US both did not,

0:46:33.280 --> 0:46:36.120
<v Speaker 4>and we should talk about that. US technologies, let's say,

0:46:36.160 --> 0:46:41.360
<v Speaker 4>in strategic areas like telecommunications, were overcome by the Chinese playbook.

0:46:41.400 --> 0:46:44.080
<v Speaker 4>So if you go around the world, it's Wahwick, it's

0:46:44.120 --> 0:46:49.000
<v Speaker 4>not ericson right, It's certainly not Motorola, which was or

0:46:49.040 --> 0:46:49.760
<v Speaker 4>put out of business.

0:46:49.920 --> 0:46:55.680
<v Speaker 1>We attempted the United States to try to hamstring Huawei,

0:46:56.640 --> 0:46:57.200
<v Speaker 1>just failed.

0:46:57.560 --> 0:46:58.840
<v Speaker 4>So let's come back to that, because I want to

0:46:58.840 --> 0:47:01.920
<v Speaker 4>make sure I answer the prime you know. It's so

0:47:01.960 --> 0:47:03.839
<v Speaker 4>when we talk about the race, that's where we mean

0:47:04.040 --> 0:47:08.200
<v Speaker 4>in deployment of AI and national security areas like intelligence

0:47:08.719 --> 0:47:12.000
<v Speaker 4>like by the military, where AI can make a difference crisis.

0:47:12.320 --> 0:47:14.240
<v Speaker 1>I mean, you know it's funny. It's this is race,

0:47:14.760 --> 0:47:17.600
<v Speaker 1>but you know it's always funny, and there's sometimes the

0:47:17.680 --> 0:47:20.279
<v Speaker 1>arrogainst the west right where we assume that the other

0:47:20.320 --> 0:47:24.520
<v Speaker 1>side is to see the potential advantage or disadvantage.

0:47:23.960 --> 0:47:25.480
<v Speaker 2>If they if they allow.

0:47:26.200 --> 0:47:35.040
<v Speaker 1>But with AI, the speed of innovation and frankly the

0:47:35.120 --> 0:47:38.640
<v Speaker 1>speed with which you could counter the innovation is all

0:47:38.680 --> 0:47:42.160
<v Speaker 1>happening so fast it feels like an unwinnable race. Meaning

0:47:42.360 --> 0:47:44.840
<v Speaker 1>even if you think you there's no finish line. You

0:47:44.880 --> 0:47:48.839
<v Speaker 1>may be here and in other country's here, but they

0:47:48.880 --> 0:47:52.120
<v Speaker 1>may do this because we've seen these we've seen the

0:47:52.120 --> 0:47:52.680
<v Speaker 1>AI models.

0:47:52.719 --> 0:47:53.560
<v Speaker 2>They all leap each other.

0:47:53.920 --> 0:47:57.160
<v Speaker 1>Who's to say Chinese is a Chinese deepline model isn't

0:47:57.160 --> 0:47:58.160
<v Speaker 1>going to do the same thing.

0:47:58.239 --> 0:48:01.480
<v Speaker 4>So that's exactly the way to think about your question

0:48:02.000 --> 0:48:04.919
<v Speaker 4>about governance, because I think when we think about AI

0:48:05.000 --> 0:48:07.440
<v Speaker 4>for all the positive use cases, let's arm in arm

0:48:07.480 --> 0:48:09.839
<v Speaker 4>for the benefit of humanity, when we think about the

0:48:09.880 --> 0:48:15.680
<v Speaker 4>case of AI deployed in military in weapons, that's where

0:48:16.000 --> 0:48:20.759
<v Speaker 4>harkening back to your question around nuclear technologies, they had

0:48:20.760 --> 0:48:23.279
<v Speaker 4>the same back and forth. Right, we were attempting to

0:48:23.360 --> 0:48:27.960
<v Speaker 4>detect Soviet nuclear submarines, they were attempting to detect ours, and.

0:48:27.960 --> 0:48:29.440
<v Speaker 5>Generally we would have a flywheel.

0:48:29.480 --> 0:48:33.680
<v Speaker 4>Whereas our own detection technologies improved and became more sophisticated,

0:48:34.000 --> 0:48:37.480
<v Speaker 4>we deployed better stealth on our own subs as well

0:48:37.520 --> 0:48:40.399
<v Speaker 4>to protect against theirs. Now, clearly the pace of tech

0:48:40.560 --> 0:48:44.040
<v Speaker 4>was far slower in nuclear technologies, so we could have a.

0:48:44.000 --> 0:48:46.520
<v Speaker 1>Five year advantage a ten year advantage, it seems with

0:48:46.600 --> 0:48:48.000
<v Speaker 1>this at best you're lucky to have a.

0:48:47.960 --> 0:48:51.560
<v Speaker 4>Five month ANOW and the degree of depth, potentially of

0:48:51.600 --> 0:48:56.440
<v Speaker 4>incorporation of AI into military decision making can be significant. Now,

0:48:56.719 --> 0:49:00.320
<v Speaker 4>I want to be clear and say military culture around

0:49:00.360 --> 0:49:04.600
<v Speaker 4>the world is generally more conservative. These are people who

0:49:04.640 --> 0:49:06.720
<v Speaker 4>are trained in the laws of war. These are people

0:49:06.719 --> 0:49:08.799
<v Speaker 4>who know what it means to lose a life, and

0:49:08.800 --> 0:49:11.319
<v Speaker 4>they also know that any technology use on offense it's

0:49:11.360 --> 0:49:14.280
<v Speaker 4>likely to come back to that you have to defend

0:49:14.320 --> 0:49:17.080
<v Speaker 4>against as well. So it's not as if I think

0:49:17.160 --> 0:49:20.440
<v Speaker 4>military communities anywhere around the world rush to deploy a

0:49:20.480 --> 0:49:24.839
<v Speaker 4>new technology that's not fully understood. With that said, that

0:49:25.040 --> 0:49:29.040
<v Speaker 4>is where as China and the US talk discussions about

0:49:29.640 --> 0:49:35.560
<v Speaker 4>how will we incorporate AI into our military decision making

0:49:35.920 --> 0:49:39.480
<v Speaker 4>and most importantly, if there is a misunderstanding, how do

0:49:39.520 --> 0:49:42.000
<v Speaker 4>we communicate. One of the troubling things about US China

0:49:42.040 --> 0:49:44.960
<v Speaker 4>relations is that we haven't had a military.

0:49:44.480 --> 0:49:48.040
<v Speaker 2>To red phone. We don't have the exactly you know,

0:49:48.080 --> 0:49:49.480
<v Speaker 2>the metaphorical right exactly.

0:49:49.719 --> 0:49:52.360
<v Speaker 4>And in the past, with our last peer adversary, the

0:49:52.400 --> 0:49:55.239
<v Speaker 4>Soviet Union, we had both a military red phone and

0:49:55.320 --> 0:49:57.560
<v Speaker 4>a political line.

0:50:00.080 --> 0:50:02.200
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0:50:54.640 --> 0:50:57.360
<v Speaker 1>this stuff, in cannabis and hemp derived. I do not

0:50:57.840 --> 0:51:00.279
<v Speaker 1>partake in alcohol. For the most part, I think this

0:51:00.320 --> 0:51:02.600
<v Speaker 1>stuff is a lot safer than alcohol, a lot less

0:51:02.600 --> 0:51:05.480
<v Speaker 1>addictive than alcohol. And yes, I have to say I

0:51:05.520 --> 0:51:08.319
<v Speaker 1>love these drinks. It is the glass of wine and

0:51:08.360 --> 0:51:11.759
<v Speaker 1>you know after work, that's what this is. So no

0:51:11.880 --> 0:51:16.040
<v Speaker 1>hangover and no excess calories like this. I'm a big fan.

0:51:16.520 --> 0:51:18.719
<v Speaker 1>So bring on the good vibes and treat yourself to

0:51:18.760 --> 0:51:21.759
<v Speaker 1>Sold today. Right now, Soul is offering my audience thirty

0:51:21.800 --> 0:51:24.560
<v Speaker 1>percent off your entire order. Go to getsol dot com

0:51:24.600 --> 0:51:28.080
<v Speaker 1>and use the word toodcast that's getsold dot com promo

0:51:28.120 --> 0:51:31.759
<v Speaker 1>code podcast for thirty percent off. And yes, I too,

0:51:32.080 --> 0:51:37.840
<v Speaker 1>am a customer. Yeah, but we didn't get it until

0:51:37.880 --> 0:51:40.440
<v Speaker 1>after we had almost a convertation. Like it took a

0:51:40.560 --> 0:51:44.160
<v Speaker 1>crisis to create those safeguards.

0:51:44.280 --> 0:51:46.239
<v Speaker 4>And to be clear, the US has attempted to put

0:51:46.239 --> 0:51:48.600
<v Speaker 4>that in place. The onus is really the Chinese have

0:51:48.680 --> 0:51:50.560
<v Speaker 4>not wanted to put it in place, and the concern

0:51:50.600 --> 0:51:53.320
<v Speaker 4>really is that as a result, as each of us

0:51:53.480 --> 0:51:57.800
<v Speaker 4>start to deploy AI and sensitive areas, there is the

0:51:57.840 --> 0:52:02.680
<v Speaker 4>opportunity for miscommunication. There isn't necessarily the channel to resolve it.

0:52:02.880 --> 0:52:07.080
<v Speaker 4>And that's where discussions among leaders are important, as well

0:52:07.160 --> 0:52:11.640
<v Speaker 4>as putting in place the detection technology so that we

0:52:11.880 --> 0:52:14.640
<v Speaker 4>and and really the intelligence capability is to try to

0:52:14.719 --> 0:52:18.440
<v Speaker 4>understand how competitors are using AI in their own ecosystem

0:52:18.480 --> 0:52:21.640
<v Speaker 4>so we can be aware as well and know and

0:52:21.680 --> 0:52:24.400
<v Speaker 4>try our best not to misinterpret. But an ideal world,

0:52:24.760 --> 0:52:27.440
<v Speaker 4>that's where you want the governance simply.

0:52:28.360 --> 0:52:32.400
<v Speaker 1>We go to a larger issue. You're now in the

0:52:32.440 --> 0:52:33.120
<v Speaker 1>private sector.

0:52:35.960 --> 0:52:38.720
<v Speaker 5>There has been hard always stays in the national security.

0:52:38.760 --> 0:52:41.200
<v Speaker 2>I hear you, I hear you. There is this, There is.

0:52:43.200 --> 0:52:46.680
<v Speaker 1>There is The industry is petrified of any regulation at

0:52:46.680 --> 0:52:52.400
<v Speaker 1>the moment. And I am cranky cinical reporter who says

0:52:53.719 --> 0:52:56.520
<v Speaker 1>tech industry, you you you gave us social media and

0:52:56.640 --> 0:53:00.399
<v Speaker 1>totally destroy the information ecosystem and we're suppos to trust

0:53:00.440 --> 0:53:03.360
<v Speaker 1>you with AI. The industry, I feel like is not

0:53:03.560 --> 0:53:07.440
<v Speaker 1>fully self aware as to how they have brought up.

0:53:07.560 --> 0:53:12.920
<v Speaker 1>The skepticism that is out there about the technology exists

0:53:13.160 --> 0:53:17.759
<v Speaker 1>because of essentially their bad behavior and the lack of

0:53:18.280 --> 0:53:23.040
<v Speaker 1>lack of regulatory for any sort of significant regulation coming

0:53:23.080 --> 0:53:23.680
<v Speaker 1>from government.

0:53:24.840 --> 0:53:27.399
<v Speaker 2>And now we're jumping to it I entirely new technology.

0:53:28.120 --> 0:53:31.319
<v Speaker 2>This feels this feels like.

0:53:33.480 --> 0:53:37.279
<v Speaker 1>This just feels like government has no chance to sort

0:53:37.280 --> 0:53:38.319
<v Speaker 1>of get its monitories.

0:53:40.480 --> 0:53:43.360
<v Speaker 4>It is always a hard area to think about how

0:53:43.400 --> 0:53:47.520
<v Speaker 4>to regulate a technology that's evolving so quickly. And I

0:53:47.560 --> 0:53:50.160
<v Speaker 4>think there are some lessons we can learn from cyberspace

0:53:50.560 --> 0:53:52.439
<v Speaker 4>and some that are very new. What do I mean,

0:53:54.239 --> 0:53:56.560
<v Speaker 4>As you said, the US government failed to put in

0:53:56.600 --> 0:54:01.560
<v Speaker 4>place regulations for cyberspace for a decade. The last attempt

0:54:01.560 --> 0:54:04.040
<v Speaker 4>was a Lieberman Collins bill in twenty fifteen that's failed.

0:54:05.200 --> 0:54:08.840
<v Speaker 4>After the Colonial pipeline incident, the President turned to me

0:54:08.880 --> 0:54:09.480
<v Speaker 4>and said.

0:54:09.239 --> 0:54:10.840
<v Speaker 5>And how is this happening?

0:54:12.000 --> 0:54:14.839
<v Speaker 4>How can it be that we have one major pipeline,

0:54:14.920 --> 0:54:18.800
<v Speaker 4>one major oil and gas pipeline supplying the entire East coast,

0:54:18.880 --> 0:54:24.560
<v Speaker 4>only one, and a group of ransomware attackers sitting in

0:54:24.560 --> 0:54:28.920
<v Speaker 4>Saint Petersburg can can conduct an attack that leads the

0:54:28.960 --> 0:54:32.000
<v Speaker 4>company to take it offline, and as you know, that

0:54:32.080 --> 0:54:34.880
<v Speaker 4>led to you know, americans at gasoline stations.

0:54:34.920 --> 0:54:36.160
<v Speaker 5>One of the things we learned is never.

0:54:36.160 --> 0:54:38.120
<v Speaker 4>Tell Americans please don't line up and get your gas

0:54:38.120 --> 0:54:40.319
<v Speaker 4>all will be well, because then they immediately will go

0:54:41.640 --> 0:54:42.560
<v Speaker 4>refill their pumps.

0:54:44.400 --> 0:54:47.200
<v Speaker 5>And at the time we realized we.

0:54:47.120 --> 0:54:49.600
<v Speaker 4>Were reflected on the President's question and said, you know,

0:54:50.239 --> 0:54:53.319
<v Speaker 4>let's do a scrub and see are there regulations that

0:54:53.400 --> 0:54:56.520
<v Speaker 4>already exist that apply. And what we found was that

0:54:56.560 --> 0:54:59.919
<v Speaker 4>in pretty much every sector of critical infrastructure there were

0:55:00.080 --> 0:55:04.279
<v Speaker 4>old safety regulations that could be reinterpreted for the digital age.

0:55:04.280 --> 0:55:04.799
<v Speaker 5>What do I mean?

0:55:05.560 --> 0:55:10.040
<v Speaker 4>Railroad signaling systems already had regulations to ensure that when

0:55:10.040 --> 0:55:13.879
<v Speaker 4>they were mechanical, the mechanical box was properly secured. Who

0:55:13.880 --> 0:55:15.640
<v Speaker 4>could have access to that, who could have the key?

0:55:16.280 --> 0:55:19.680
<v Speaker 4>So we worked with TSA, who's the regulator for all railroads,

0:55:20.040 --> 0:55:23.360
<v Speaker 4>took those regulations and updated them for the digital age

0:55:23.880 --> 0:55:26.840
<v Speaker 4>to say, you know, you need multi factor authentication, not

0:55:26.880 --> 0:55:30.120
<v Speaker 4>a password because everybody's passwords have been compromised. You need

0:55:30.120 --> 0:55:33.560
<v Speaker 4>to ensure you have a monitoring system for your signaling system.

0:55:34.000 --> 0:55:35.799
<v Speaker 5>And initially there was some pushback from the.

0:55:35.719 --> 0:55:38.440
<v Speaker 4>Sector exactly as you said, and we realized that we

0:55:38.520 --> 0:55:41.279
<v Speaker 4>had failed to properly engage them. So we invited the

0:55:41.400 --> 0:55:44.239
<v Speaker 4>fifty seven railroad CEOs in the country to come in

0:55:44.920 --> 0:55:48.799
<v Speaker 4>and we gave them briefings on the security threat, and

0:55:48.840 --> 0:55:52.040
<v Speaker 4>we said, here are the security things that we think

0:55:52.040 --> 0:55:54.840
<v Speaker 4>are needed. Let's have a discussion of that right balance

0:55:54.840 --> 0:55:57.919
<v Speaker 4>of costs and impact, because if the threat is here

0:55:58.360 --> 0:56:01.640
<v Speaker 4>and railroad signaling systems here, we can't jump here in

0:56:01.680 --> 0:56:05.880
<v Speaker 4>one leap, but we can jump here, show the impact,

0:56:06.040 --> 0:56:08.160
<v Speaker 4>show how we're reducing the cost of an attack, which

0:56:08.200 --> 0:56:11.040
<v Speaker 4>is significant, and then do that in degrees. We did

0:56:11.040 --> 0:56:14.080
<v Speaker 4>it for pipelines, we did it for ports, we did

0:56:14.120 --> 0:56:18.320
<v Speaker 4>it for airports. We did it for water systems using

0:56:18.440 --> 0:56:21.560
<v Speaker 4>existing regulators and existing regulations. And I think there's a

0:56:21.560 --> 0:56:23.439
<v Speaker 4>lot we can learn from that because there's no one

0:56:23.480 --> 0:56:26.359
<v Speaker 4>size fits all. I've visited water systems in San Jose.

0:56:26.800 --> 0:56:29.719
<v Speaker 4>Securing those water systems so Americans have safe water is

0:56:29.840 --> 0:56:32.520
<v Speaker 4>very different from securing an oil and gas pipeline. And

0:56:32.560 --> 0:56:35.480
<v Speaker 4>the regulators know their sectors well and know what's reasonable

0:56:35.760 --> 0:56:38.640
<v Speaker 4>in terms of the cost burden for impact in terms

0:56:38.680 --> 0:56:40.840
<v Speaker 4>of driving down the threat. So I just to close

0:56:40.880 --> 0:56:43.200
<v Speaker 4>on that I think there's some lessons to be learned

0:56:43.200 --> 0:56:46.080
<v Speaker 4>in the case of AI, right Like, for example, if

0:56:46.120 --> 0:56:48.560
<v Speaker 4>you think about people are worried that AI is used

0:56:48.600 --> 0:56:50.960
<v Speaker 4>to determine if you or I should get alone, and

0:56:51.000 --> 0:56:52.840
<v Speaker 4>they want to make sure that the data that's trained

0:56:52.840 --> 0:56:56.759
<v Speaker 4>on is not biased and that the recommendation is explainable.

0:56:56.800 --> 0:56:59.759
<v Speaker 4>So a human looking at it can say, why trust chock,

0:57:00.040 --> 0:57:03.640
<v Speaker 4>why not trust in? There are existing regulations that do that.

0:57:04.080 --> 0:57:04.680
<v Speaker 5>They have to be.

0:57:04.680 --> 0:57:06.920
<v Speaker 4>Updated for the use of AI, many of them or

0:57:07.080 --> 0:57:10.000
<v Speaker 4>they exist so many are adequate. That needs to be

0:57:10.040 --> 0:57:12.719
<v Speaker 4>done for every sector. And then going back to the

0:57:12.719 --> 0:57:15.959
<v Speaker 4>first question you asked me that talks about the risk

0:57:16.040 --> 0:57:19.520
<v Speaker 4>AI brings separately, there are approaches we need to do

0:57:19.560 --> 0:57:21.280
<v Speaker 4>to make sure the AI models that are deployed are

0:57:21.280 --> 0:57:22.320
<v Speaker 4>safe themselves.

0:57:23.520 --> 0:57:25.440
<v Speaker 1>So this gets back to you, we don't you know,

0:57:25.480 --> 0:57:26.960
<v Speaker 1>we still don't regulate algorithms.

0:57:28.560 --> 0:57:29.280
<v Speaker 2>Algorithms.

0:57:29.280 --> 0:57:32.400
<v Speaker 1>Many companies believe their algorithms are this proprietary thing, and

0:57:32.480 --> 0:57:36.400
<v Speaker 1>we don't know whether it's being used for predatory practices.

0:57:37.120 --> 0:57:40.440
<v Speaker 1>For because it's an algorithm that could make that decision

0:57:40.440 --> 0:57:44.320
<v Speaker 1>about a mortgage or about a loan. Sometimes after the fact,

0:57:44.400 --> 0:57:47.120
<v Speaker 1>maybe a civil lawsuit is brought and then you can

0:57:47.600 --> 0:57:49.840
<v Speaker 1>somehow claim that they violated the law. I get that

0:57:49.840 --> 0:57:53.760
<v Speaker 1>the law is there eventually, but is there a proactive

0:57:53.800 --> 0:57:56.520
<v Speaker 1>way to essentially, hey, we've got a new algorithm that's

0:57:57.000 --> 0:57:57.439
<v Speaker 1>it's going.

0:57:57.360 --> 0:57:58.200
<v Speaker 2>To help us.

0:58:01.520 --> 0:58:05.120
<v Speaker 1>Get through these mortgage applications faster. Let's make sure it's

0:58:05.120 --> 0:58:07.000
<v Speaker 1>approved by the government the same way we would approve

0:58:07.040 --> 0:58:10.800
<v Speaker 1>a new drug before it was circulated on the market,

0:58:10.920 --> 0:58:16.520
<v Speaker 1>sold as a as a as a pharmaceutical, you know,

0:58:17.000 --> 0:58:18.520
<v Speaker 1>answer to some disease.

0:58:19.680 --> 0:58:20.440
<v Speaker 5>It's a good question.

0:58:20.480 --> 0:58:23.040
<v Speaker 4>And the big difference I think between an AI model

0:58:23.120 --> 0:58:25.400
<v Speaker 4>or an algorithm, to your point, and a drug is

0:58:25.560 --> 0:58:28.880
<v Speaker 4>one changes so continuously and one takes time to develop

0:58:28.880 --> 0:58:29.360
<v Speaker 4>and test.

0:58:29.720 --> 0:58:31.480
<v Speaker 5>It has IP protection attacked, I.

0:58:31.480 --> 0:58:36.200
<v Speaker 1>Admit, but I you know, actually the speed of prescription

0:58:36.280 --> 0:58:38.800
<v Speaker 1>drugs is going faster. I mean, I could make an

0:58:38.880 --> 0:58:42.000
<v Speaker 1>argument that FDA and drugs AI models.

0:58:42.760 --> 0:58:44.640
<v Speaker 2>You know, why shouldn't there be an FDA or AM

0:58:45.360 --> 0:58:47.120
<v Speaker 2>And I think it's.

0:58:47.520 --> 0:58:49.600
<v Speaker 4>I think to your point, there's a tension between the

0:58:49.720 --> 0:58:53.680
<v Speaker 4>innovation and regulation, right because regulation often is slow to

0:58:53.800 --> 0:58:57.880
<v Speaker 4>adapt to adapt to changing technology. And in fact, I think, frankly,

0:58:57.920 --> 0:58:59.600
<v Speaker 4>if you look at the difference between the European Union

0:58:59.600 --> 0:59:01.760
<v Speaker 4>and the United the States. European Union is a country

0:59:01.760 --> 0:59:04.560
<v Speaker 4>that puts regulations first, an innovation second.

0:59:04.680 --> 0:59:07.400
<v Speaker 1>I get it, and it's what's the line. Yeah, well,

0:59:07.440 --> 0:59:09.480
<v Speaker 1>right now, there's no line, And I think we're not

0:59:09.520 --> 0:59:13.400
<v Speaker 1>even attempting any of them because the industry has got

0:59:13.440 --> 0:59:17.040
<v Speaker 1>aggressive politically and has got essentially made a political bargain

0:59:17.040 --> 0:59:17.680
<v Speaker 1>with this administry.

0:59:18.000 --> 0:59:22.200
<v Speaker 4>And I think there's a balance between the how we

0:59:22.240 --> 0:59:25.880
<v Speaker 4>approach AI models themselves and then how do we approach

0:59:26.360 --> 0:59:30.920
<v Speaker 4>when they're deployed in sectors where regulations exist, Like, for example,

0:59:30.960 --> 0:59:32.960
<v Speaker 4>we'll just go use our loan example again.

0:59:33.240 --> 0:59:35.840
<v Speaker 5>So if somebody is deploying an AI model.

0:59:35.760 --> 0:59:40.120
<v Speaker 4>To determine who gets a loan, there are regulations around

0:59:40.360 --> 0:59:44.520
<v Speaker 4>explaining how a decision is made coming out of an

0:59:44.520 --> 0:59:48.240
<v Speaker 4>algorithm or model, and around what data that's trained on,

0:59:49.480 --> 0:59:52.240
<v Speaker 4>So that you need transparency on the data it's trained

0:59:52.280 --> 0:59:55.320
<v Speaker 4>on and explainability of how that decision is made. That

0:59:55.400 --> 0:59:58.160
<v Speaker 4>exists in that sector. It doesn't exist in every sector,

0:59:58.200 --> 1:00:01.000
<v Speaker 4>and that's really what we need. We need the transparency

1:00:01.000 --> 1:00:03.560
<v Speaker 4>on the data models trained on to see is it

1:00:03.600 --> 1:00:06.280
<v Speaker 4>trained on data that fundamentally was.

1:00:06.440 --> 1:00:07.840
<v Speaker 2>Do we need new law in the books for this.

1:00:10.840 --> 1:00:14.320
<v Speaker 4>I usually default to say, given that laws trail tech

1:00:14.640 --> 1:00:17.920
<v Speaker 4>by such a long time, are there ways that we

1:00:17.960 --> 1:00:21.520
<v Speaker 4>can achieve what we want, which is protecting the population

1:00:21.880 --> 1:00:25.360
<v Speaker 4>from a new technology's most significant risks in a way

1:00:25.400 --> 1:00:29.480
<v Speaker 4>that's also adaptable and changes quickly. And I think there

1:00:30.320 --> 1:00:34.600
<v Speaker 4>to your point, looking at the AI models and saying,

1:00:34.960 --> 1:00:39.040
<v Speaker 4>what is the delta harm they bring to different areas,

1:00:39.520 --> 1:00:42.919
<v Speaker 4>and then what's the best way to control against that harm?

1:00:43.000 --> 1:00:43.880
<v Speaker 5>What's what's needed?

1:00:44.120 --> 1:00:48.040
<v Speaker 1>Look, a month ago, Anthropic came out and said, our

1:00:48.160 --> 1:00:50.680
<v Speaker 1>new AI model is so powerful, we're.

1:00:50.520 --> 1:00:52.160
<v Speaker 2>Not sure that.

1:00:54.200 --> 1:00:58.160
<v Speaker 1>Current cybersecurity infrastructure is going to be able to defend

1:00:58.320 --> 1:01:02.880
<v Speaker 1>against people deciding to use our model to potentially attack.

1:01:03.840 --> 1:01:05.600
<v Speaker 2>And there's a part of me that says, so why

1:01:05.720 --> 1:01:11.280
<v Speaker 2>release the model? Like should this?

1:01:11.640 --> 1:01:13.720
<v Speaker 1>But again, there's no law in the books that says

1:01:13.720 --> 1:01:14.680
<v Speaker 1>they can't release the model.

1:01:15.240 --> 1:01:17.680
<v Speaker 4>So yes, And you know that's a fierce debate in

1:01:17.680 --> 1:01:18.800
<v Speaker 4>the cybersecurity community.

1:01:18.840 --> 1:01:21.440
<v Speaker 5>How much of that was Anthropic marketing and all that

1:01:22.680 --> 1:01:23.160
<v Speaker 5>I saw.

1:01:24.120 --> 1:01:25.840
<v Speaker 2>Debate, I think it is enough.

1:01:25.960 --> 1:01:30.120
<v Speaker 1>It's no different than claiming that your prescription drug, if

1:01:30.120 --> 1:01:32.400
<v Speaker 1>it works properly but for longer.

1:01:32.120 --> 1:01:35.000
<v Speaker 2>Than four hours, call a doctor. Was that a side effect.

1:01:35.160 --> 1:01:37.240
<v Speaker 5>Was that a marketing gold Well, you know, so it's

1:01:37.240 --> 1:01:37.840
<v Speaker 5>so interesting.

1:01:37.960 --> 1:01:40.920
<v Speaker 4>I've had the privilege of leading teams conducting offensive operations

1:01:40.960 --> 1:01:43.560
<v Speaker 4>and I also, as you know, led defensive head of

1:01:43.600 --> 1:01:45.680
<v Speaker 4>cybersecurity and essay and then let this work at the

1:01:45.680 --> 1:01:49.360
<v Speaker 4>White House, and I will say that I really believe

1:01:49.480 --> 1:01:54.560
<v Speaker 4>AI models will transform cybersecurity on defense. But it's a

1:01:54.600 --> 1:01:57.440
<v Speaker 4>painful path there, and that's what we need to control

1:01:57.480 --> 1:02:00.800
<v Speaker 4>for what do I mean it is far easier.

1:02:00.480 --> 1:02:01.600
<v Speaker 5>To attack than to defend.

1:02:01.600 --> 1:02:03.560
<v Speaker 4>An attacker has to find one way in a defender

1:02:03.560 --> 1:02:06.720
<v Speaker 4>has to be checking every door, window and ceiling.

1:02:07.080 --> 1:02:10.240
<v Speaker 1>Job in America's homeland security, yeah, because.

1:02:11.760 --> 1:02:14.160
<v Speaker 5>N is not going to happen, and being a SISO

1:02:14.320 --> 1:02:15.280
<v Speaker 5>is a really tough job.

1:02:15.400 --> 1:02:18.800
<v Speaker 4>I mean, there's often discussions in that community around just

1:02:19.000 --> 1:02:22.479
<v Speaker 4>how difficult, how much people know exactly this, et cetera.

1:02:22.560 --> 1:02:23.040
<v Speaker 2>It's terrible.

1:02:23.640 --> 1:02:27.640
<v Speaker 4>Now, what AI allows is attackers to jiggle every doorknob

1:02:27.640 --> 1:02:31.560
<v Speaker 4>continuously and at scale. So it really does enable attackers.

1:02:31.840 --> 1:02:34.440
<v Speaker 4>But what allows defenders to do if they're doing the

1:02:34.480 --> 1:02:37.280
<v Speaker 4>same thing, if they're jiggling every doorknob in their infrastructure

1:02:38.160 --> 1:02:42.480
<v Speaker 4>in advance and at scale, and AI then helps generate

1:02:42.560 --> 1:02:46.800
<v Speaker 4>patches or controls to compensate that can be significant. Today,

1:02:47.320 --> 1:02:52.560
<v Speaker 4>the model's capabilities on generating patches, et cetera need to

1:02:52.600 --> 1:02:53.040
<v Speaker 4>be better.

1:02:53.080 --> 1:02:54.600
<v Speaker 5>They're there, but they need to be better.

1:02:55.320 --> 1:02:59.240
<v Speaker 4>So the approach that said, let's get the core companies

1:02:59.280 --> 1:03:03.960
<v Speaker 4>producing digital infrastructure that everyone uses to use the models

1:03:03.960 --> 1:03:08.240
<v Speaker 4>to find and fix vulnerabilities and deploy them via existing

1:03:08.280 --> 1:03:12.800
<v Speaker 4>patches is a smart one because it starts locking down

1:03:12.840 --> 1:03:16.480
<v Speaker 4>common infrastructure. What's missing today and what we need is

1:03:16.480 --> 1:03:19.600
<v Speaker 4>that in all of our critical sectors. Hospitals are a

1:03:19.600 --> 1:03:22.720
<v Speaker 4>good one, there's also a stack that rides on top

1:03:22.840 --> 1:03:27.320
<v Speaker 4>of the core infrastructure and that is often what's used

1:03:27.320 --> 1:03:31.000
<v Speaker 4>to compromise a hospital to disrupt its operations. That's missing,

1:03:31.320 --> 1:03:33.120
<v Speaker 4>and I think that's what we need to be able

1:03:33.160 --> 1:03:36.040
<v Speaker 4>to say, within each sector, what does the stack look like?

1:03:36.400 --> 1:03:38.920
<v Speaker 4>And in some cases those are stacks that aren't updated

1:03:39.200 --> 1:03:40.360
<v Speaker 4>and secure them quickly.

1:03:41.600 --> 1:03:45.000
<v Speaker 1>Is government behind or industry being obstinate?

1:03:46.680 --> 1:03:49.640
<v Speaker 4>Government needs to be doing convening and I see the

1:03:49.680 --> 1:03:53.120
<v Speaker 4>power of government convening is significant when you bring everybody

1:03:53.120 --> 1:03:56.240
<v Speaker 4>around the table and you say, look, we can regulate

1:03:56.280 --> 1:03:58.600
<v Speaker 4>this or these are the things we.

1:03:58.520 --> 1:04:01.080
<v Speaker 5>Need to see you get done.

1:04:01.160 --> 1:04:03.960
<v Speaker 4>Particularly when companies are out there saying this is such

1:04:04.000 --> 1:04:06.720
<v Speaker 4>a powerful weapon, this is so concerning, Well, then act

1:04:06.720 --> 1:04:07.040
<v Speaker 4>it out.

1:04:07.080 --> 1:04:08.480
<v Speaker 5>Then work with.

1:04:08.480 --> 1:04:12.040
<v Speaker 4>Us in team to ensure that we can equip defenders

1:04:12.080 --> 1:04:15.120
<v Speaker 4>to be ready, because, let's be honest, Chinese open source

1:04:15.160 --> 1:04:19.480
<v Speaker 4>models followed by six months and that's a threat that's significant.

1:04:19.480 --> 1:04:23.200
<v Speaker 4>So we have a window of time for models, for

1:04:23.240 --> 1:04:27.040
<v Speaker 4>frontier model companies to be working, and frankly, for government

1:04:27.080 --> 1:04:30.720
<v Speaker 4>to be helping convene the open source and the open

1:04:30.720 --> 1:04:33.280
<v Speaker 4>source community to be getting access to the models because,

1:04:33.320 --> 1:04:36.840
<v Speaker 4>as you know, open source, unlike a Cisco or Microsoft,

1:04:37.320 --> 1:04:42.560
<v Speaker 4>is developed often by anyone, but broadly deployed in our infrastructure.

1:04:42.800 --> 1:04:45.320
<v Speaker 4>So I think that's starting. You see, the White House

1:04:45.320 --> 1:04:47.919
<v Speaker 4>has been bringing companies together. You see Project Last Wing,

1:04:48.000 --> 1:04:51.200
<v Speaker 4>you see opening eyes approach to say we'll approve people

1:04:51.400 --> 1:04:51.840
<v Speaker 4>because we.

1:04:51.760 --> 1:04:52.720
<v Speaker 5>Wanted to know your customer.

1:04:52.800 --> 1:04:54.480
<v Speaker 4>We want to know are you a SISO, are you

1:04:54.520 --> 1:04:57.080
<v Speaker 4>a head of cyber or AI for a country who's

1:04:57.080 --> 1:04:59.640
<v Speaker 4>setting strategy, and if so, will come up with ways

1:04:59.680 --> 1:05:02.120
<v Speaker 4>to have you use the model in a way that's

1:05:02.120 --> 1:05:05.040
<v Speaker 4>safe and doesn't broadly distribute it. But the race is on,

1:05:05.600 --> 1:05:08.440
<v Speaker 4>and to be clear, even though you know I do

1:05:08.520 --> 1:05:11.040
<v Speaker 4>believe it's going to be a game changer on cybersecurity.

1:05:11.280 --> 1:05:13.800
<v Speaker 4>We've got to ensure that models are in the hands

1:05:13.840 --> 1:05:18.080
<v Speaker 4>of defenders quickly, and we've got to keep the pressure

1:05:18.080 --> 1:05:20.919
<v Speaker 4>on companies that build digital infrastructure to be getting those

1:05:21.000 --> 1:05:25.960
<v Speaker 4>patches out and figuring out for infrastructure that is difficult

1:05:26.200 --> 1:05:26.760
<v Speaker 4>to patch.

1:05:27.120 --> 1:05:28.720
<v Speaker 5>You know, it's not so easy to just push a

1:05:28.760 --> 1:05:30.160
<v Speaker 5>patch on a manufacturing plan.

1:05:30.800 --> 1:05:34.600
<v Speaker 4>You know, it sometimes has side effects that we can

1:05:34.960 --> 1:05:38.080
<v Speaker 4>use AI, for example, to simulate those patches to ensure

1:05:38.080 --> 1:05:40.720
<v Speaker 4>that they're working right, to give users more confidence to

1:05:40.800 --> 1:05:42.680
<v Speaker 4>deploy them. So there's a lot that needs to get done.

1:05:42.720 --> 1:05:44.520
<v Speaker 2>You're outriting a lot that we need to do.

1:05:46.160 --> 1:05:50.240
<v Speaker 1>Color me skeptical that we have the current governmental infrastructure

1:05:50.280 --> 1:05:54.479
<v Speaker 1>to respond in the ways that maybe the public needs

1:05:54.480 --> 1:05:55.080
<v Speaker 1>it to respond.

1:05:56.200 --> 1:05:57.760
<v Speaker 4>You know, the first step is saying here's where we

1:05:57.800 --> 1:06:01.040
<v Speaker 4>need to go. The second step is rally a community.

1:06:01.920 --> 1:06:05.080
<v Speaker 4>The nice part is there are lots of people across

1:06:05.200 --> 1:06:07.680
<v Speaker 4>the tech community are ready to roll up their sleeves

1:06:08.000 --> 1:06:09.880
<v Speaker 4>and can be self organizing on this too.

1:06:10.000 --> 1:06:14.480
<v Speaker 1>But you're right, governments, and yet we're all watching as

1:06:14.560 --> 1:06:19.720
<v Speaker 1>voyeurs this elon musk Open AI trial and it doesn't

1:06:19.760 --> 1:06:22.560
<v Speaker 1>give a lot of confidence in some of these companies.

1:06:22.600 --> 1:06:25.400
<v Speaker 4>You're right that the role of government inconvening, and I

1:06:25.440 --> 1:06:27.840
<v Speaker 4>do believe the White House has been doing convenings, bringing

1:06:27.880 --> 1:06:31.040
<v Speaker 4>companies together and trying to get action out of them.

1:06:31.320 --> 1:06:33.280
<v Speaker 4>And in fact, companies are moving in. I've talked to

1:06:33.840 --> 1:06:35.840
<v Speaker 4>a number of companies participating in glass Wing.

1:06:35.880 --> 1:06:37.920
<v Speaker 5>They're doing the work, they're building.

1:06:37.640 --> 1:06:39.760
<v Speaker 4>The patches, they're planning to get them out to customers,

1:06:40.200 --> 1:06:40.880
<v Speaker 4>pressing them.

1:06:40.720 --> 1:06:44.920
<v Speaker 1>On psychically, initial models are not the trustworthy enterprise. It's

1:06:44.960 --> 1:06:48.200
<v Speaker 1>one thing for Microsoft, JP, Morgan, some of these companies

1:06:48.240 --> 1:06:52.600
<v Speaker 1>to be responsible with how they're using these models, but

1:06:52.640 --> 1:06:56.200
<v Speaker 1>it feels like the companies that are making the models don't.

1:06:56.600 --> 1:06:59.960
<v Speaker 1>Necessarily they seem to be more a bit self absorbed.

1:07:00.120 --> 1:07:03.160
<v Speaker 4>There's a tension between the commercial value and the national

1:07:03.200 --> 1:07:08.560
<v Speaker 4>security risk, and typically, you know, government makes that determination.

1:07:08.920 --> 1:07:10.919
<v Speaker 4>What's so different here is the tech is coming out

1:07:10.920 --> 1:07:14.240
<v Speaker 4>of the private sector, and it is important that government

1:07:14.320 --> 1:07:17.320
<v Speaker 4>come out and clearly say here's where national security risk

1:07:17.400 --> 1:07:20.040
<v Speaker 4>is significant. Here's an approach that insures we still lead

1:07:20.120 --> 1:07:22.640
<v Speaker 4>on innovation, but we drive down the risk to an

1:07:22.680 --> 1:07:23.600
<v Speaker 4>acceptable level.

1:07:23.440 --> 1:07:24.040
<v Speaker 5>Along the way.

1:07:25.240 --> 1:07:28.120
<v Speaker 1>And you've got a big job it's like with trying

1:07:28.160 --> 1:07:29.280
<v Speaker 1>to bridge this divide.

1:07:29.440 --> 1:07:33.360
<v Speaker 4>It's a large community, and you know, I always believe

1:07:33.400 --> 1:07:35.560
<v Speaker 4>with tech, there's nothing wrong with tech that can be fixed.

1:07:35.560 --> 1:07:37.840
<v Speaker 1>With the threat, I will say this, I think there's

1:07:38.120 --> 1:07:41.960
<v Speaker 1>government is skeptical, a tech is skeptical of government, and

1:07:42.040 --> 1:07:44.240
<v Speaker 1>yet they have to work together in world fits.

1:07:45.200 --> 1:07:47.520
<v Speaker 4>I very much agree with that, and I think quite

1:07:47.520 --> 1:07:52.240
<v Speaker 4>frankly those relationships. When I think back to the Snowden period,

1:07:52.360 --> 1:07:56.240
<v Speaker 4>the divide between Washington and Silicon Valley was incredibly sharp,

1:07:57.200 --> 1:07:59.800
<v Speaker 4>and that came from a sense that government surveillance wasn't

1:07:59.800 --> 1:08:02.680
<v Speaker 4>farnollowing laws and policies of the country as a democracy.

1:08:03.480 --> 1:08:05.400
<v Speaker 5>And frankly, you know, at the.

1:08:05.360 --> 1:08:07.760
<v Speaker 4>Time, I after that, I was asked to be NSA's

1:08:07.760 --> 1:08:10.000
<v Speaker 4>first chief risk officer, and I remember flying back and

1:08:10.040 --> 1:08:12.640
<v Speaker 4>forth across the country and seeing how sharp the divide was.

1:08:12.920 --> 1:08:15.040
<v Speaker 4>Folks in the national security community were saying, why don't

1:08:15.040 --> 1:08:17.599
<v Speaker 4>people trust us? We're the good guys here, and folks

1:08:17.680 --> 1:08:20.040
<v Speaker 4>in the private sector were like, Okay, how does this

1:08:20.120 --> 1:08:23.360
<v Speaker 4>intelligence community work and doesn't really respect my values? And

1:08:23.439 --> 1:08:26.760
<v Speaker 4>it took a series of conversations, you know, over the

1:08:26.840 --> 1:08:27.960
<v Speaker 4>last decade to heal that.

1:08:28.040 --> 1:08:29.360
<v Speaker 5>I think we're at the same place.

1:08:29.120 --> 1:08:31.280
<v Speaker 2>Now where you Well, it's funny you bring up values.

1:08:31.360 --> 1:08:33.280
<v Speaker 1>What are the values of these companies? I don't know

1:08:33.360 --> 1:08:37.280
<v Speaker 1>sometimes and are they our values? I think there's some

1:08:37.360 --> 1:08:38.040
<v Speaker 1>concern about that.

1:08:38.160 --> 1:08:41.880
<v Speaker 2>But this is just the beginning, it is indeed, and

1:08:41.880 --> 1:08:42.559
<v Speaker 2>thanks for your time.

1:08:42.680 --> 1:08:43.000
<v Speaker 5>Thank you.

1:08:43.160 --> 1:08:43.400
<v Speaker 2>Thanks