AI Regulation's labor market impact: US executive order vs. EU AI act 

In a groundbreaking development, President Joe Biden’s executive order has launched a comprehensive effort to regulate AI in the United States, with a primary focus on its profound implications for the labor market.

Nonso Onowu on November 03, 2023 Average reading time: 2 min
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AI Regulation's labor market impact: US executive order vs. EU AI act 

This significant step has initiated discussions regarding the potential of the EU’s innovative AI Act to serve as a global benchmark for AI regulation. 

The executive order covers a wide list of measures, including the revision of criteria for admitting highly skilled immigrant workers, fostering international collaboration to establish AI standards, providing guidance to federal agencies on AI usage and procurement, and expediting the recruitment of AI-proficient personnel within the government. 

The U.S. government considers this executive order the most extensive and far-reaching initiative aimed at ensuring AI safety, security, and trust on a global scale.

This emphasis on international cooperation has been reinforced by recent events like the UK AI Safety Summit, highlighting the urgent need for a coordinated global response to the labor market challenges posed by AI. 

Shifting our focus to Europe, the EU’s AI Act represents a pioneering leap in the world of comprehensive AI regulation. It places a strong emphasis on the safe, transparent, and equitable utilization of AI, categorizing AI systems according to the risks they present to users and thus establishing varying levels of regulation. 

While the efforts of the U.S., UK, and EU are indeed commendable, a fundamental question looms large:

Could the EU’s AI Act become the global blueprint for AI regulation, particularly concerning its impact on the labor market?

The AI Act sets ambitious standards, highlighting inithe crucial importance of safety, transparency, and user protection. 

Comparison of Biden’s AI executive order and UK AI safety summit:

Aspect Biden AI Executive Order UK AI Safety Summit
Issuer U.S. President Joe Biden Hosted by the UK at Bletchley Park
Purpose Regulate AI in the United States Address global AI safety concerns
Focus AI safety, equity, civil rights Examination of AI risks, initiate global AI regulation dialogue
Key Topics Safety, privacy, equity, civil rights Threats like AI weaponization, bioweapons, and AI sentience
Participants U.S. government, tech companies World leaders, tech executives, academics, and nonprofits
Worker Support Produce report on labor market impact of AI Not specified
Innovation & Competition Expand grants for AI research, modernize criteria for skilled immigrant workers UK’s role as intermediary between the U.S., EU, and China in AI regulation
International Standards Develop international AI standards Not specified
Government Hiring of AI Experts Expedite government hiring of AI experts Not specified


As the outcomes of the UK AI Safety Summit and the finalization of the EU AI Act unfold, the world observes with keen interest. The key question is whether other nations, including the U.S., will embrace similar comprehensive AI regulations aligned with the EU’s approach, and how these regulations will shape the labor market, as well as broader societal and economic dynamics. 


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