[Real Beat] Labor-Management Clash in US Offices Amid Full-Scale AI Adoption... Concerns Over 'Big Brother' Emergence

Union "Concerns Over Job Losses"
Companies "Enhancing Productivity to Secure Competitiveness"

Editor's Note[Jjinbit] is a shortened form of 'Jung Hyunjin's Business Trend' and 'Real Business Trend,' a segment that showcases trends in changes in work.

As the U.S. government reviews regulations on generative artificial intelligence (AI), a serious power struggle has begun between companies and labor groups over the direction of these regulations. Social controversy is spreading as the interests of companies aiming to increase productivity through AI clash with workers' concerns about job losses and increased surveillance.

[Image source=Reuters Yonhap News]

According to the Wall Street Journal (WSJ) on the 19th (local time), the U.S. Federal Trade Commission (FTC) recently launched an investigation into OpenAI, the developer of ChatGPT. The FTC is drawing attention from both companies and labor groups by specifically questioning OpenAI about the policies it applies when selling access to its AI systems to other companies. These questions appear to be aimed at understanding the potential impacts when AI systems are applied by other companies, as the investigation could influence the U.S. government's process of creating AI regulations.

In particular, there is an opinion that the pro-union Biden administration will take workers' concerns into account. Labor groups worry that the introduction of AI by companies could lead to the disappearance of some jobs and that AI technology might be used as a tool to monitor workers, affecting the quality of work. They also fear that AI applied in hiring processes could expose candidates to gender or racial discrimination. In fact, U.S. labor representatives met directly with White House officials on the 3rd to express various concerns.

On the other hand, companies focus on the fact that applying AI to tasks such as document creation, phone answering, and personalized advertising can boost productivity and profitability. From a corporate perspective, if AI can replace some jobs, it can reduce costs and increase production speed, so they are exploring ways to adopt it.

However, the situation could change if the Biden administration introduces stringent AI regulations. Even if companies want to apply AI to improve productivity, they might be prevented from doing so due to regulatory barriers. Jordan Crenshaw, Senior Vice President of the U.S. Chamber of Commerce, pointed out, "Uncertainty and excess in regulation will hinder the socially beneficial use of AI and the ability to build U.S. competitiveness through it."

The WSJ evaluated, "Companies and labor are fighting over the future of AI in American workplaces," adding, "The FTC's ChatGPT investigation could be a test for U.S. authorities aiming to introduce AI regulations." It also stated, "The core of AI regulation discussions is whether companies and consumers can enjoy the benefits of this powerful technology while avoiding its misuse."