The Urgent Case for AI Governance

Published by The Star on 20 Feb 2025

by Thulasy Suppiah, Managing Partner

The escalating concerns surrounding AI and data privacy are reaching a boiling point. South Korea recently suspended new downloads of the Chinese chatbot DeepSeek over data protection violations, adding to a growing list of countries taking action. This, along with DeepSeek being blocked on other government devices and OpenAI’s €15 million fine in Italy, demands immediate and decisive government intervention. As AI becomes increasingly integrated into our lives, citizens will rightly expect their governments to be the first line of defense.

DeepSeek, the cost-effective Chinese chatbot, presents a particularly thorny challenge. While its popularity has exploded, so too have anxieties over its data collection practices, viewed by some as aligned with China’s strategic interests. Is this about privacy alone, or a new front in the US-China AI war? Clearly, AI has become a geopolitical weapon. The South Korean action, ostensibly about data protection, also reflects the broader anxieties surrounding Chinese technology and national security.

OpenAI’s hefty fine demonstrates that no one is immune to scrutiny. This penalty sends a clear message: prioritize transparency and user privacy or face the consequences. It sets a critical precedent for future enforcement.

But privacy is just the beginning. AI governance must also confront misinformation, bias, and the question of accountability. Large-scale AI models risk amplifying societal biases and becoming engines of disinformation. Deepfakes, AI-generated news, and political manipulation raise profound ethical questions. Who sets the guardrails – governments, corporations, or a global body? The time for debate is over; the time for action is now.

These developments demand proactive, not reactive, governance. Governments must anticipate, not merely respond to, the ethical, social, and economic implications of AI. The challenge? Finding a balance between fostering innovation and protecting citizens. Over-regulation stifles progress, while a hands-off approach invites disaster. Collaboration between governments, industry, researchers, and privacy advocates is not optional; it’s essential. Recent events, including the action taken in South Korea, underscore the immediate and critical need for balanced governance in the face of the AI revolution. The era of accountability has arrived.

© 2025 Suppiah & Partners. All rights reserved. The contents of this newsletter are intended for informational purposes only and do not constitute legal advice.

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