AI Regulation and Capitalist Growth: Balancing Innovation, Ethics, and Global Governance (2504.02000v1)

Abstract: AI is increasingly central to economic growth, promising new efficiencies and markets. This economic significance has sparked debate over AI regulation: do rules and oversight bolster long term growth by building trust and safeguarding the public, or do they constrain innovation and free enterprise? This paper examines the balance between AI regulation and capitalist ideals, focusing on how different approaches to AI data privacy can impact innovation in AI-driven applications. The central question is whether AI regulation enhances or inhibits growth in a capitalist economy. Our analysis synthesizes historical precedents, the current U.S. regulatory landscape, economic projections, legal challenges, and case studies of recent AI policies. We discuss that carefully calibrated AI data privacy regulations-balancing innovation incentives with the public interest can foster sustainable growth by building trust and ensuring responsible data use, while excessive regulation may risk stifling innovation and entrenching incumbents.