CEO Insights

As U.S.-based companies expand operations, understanding and complying with privacy laws becomes essential. Given the variation of privacy laws across different states and the globe, it is crucial for U.S. companies to stay informed.

In its landmark decision in Relentless Inc. v. U.S. Department of Commerce and Loper Bright Enterprises v. Raimondo, the U.S. Supreme Court has fundamentally reshaped the landscape of regulatory governance in the U.S. And in the wake of the ruling, the implications for industry self-regulation loom large.

The U.S. Supreme Court decision, Loper Bright Enterprises v. Raimondo, marked a pivotal shift in administrative law by overturning the Chevron deference doctrine and will have a long-term impact. The ruling also presents a unique opportunity for industries to fill regulatory gaps in a manner that enhances consumer trust.

Environmentalist Jay Westerveld first popularized the term “greenwashing” in 1986. As the term has morphed over time, it has spawned derivatives ranging from “AI washing” to “carewashing” to “healthwashing.” These terms serve to expose deceptive practices and encourage responsible behavior.

The spotlight on generative AI remains bright. The benefits and risks continue to be ever-present in the minds of business and political leaders. No matter the timing or the setting, the creation of transparency, accountability, and collaboration among stakeholders is key to successful industry self-regulation as is the importance of setting standards and best practices.

When customers trust you, they are more likely to do business with you. It is well past time for business leaders to “galvanize around trust and transparency.” When it comes to enhancing consumer trust, responsible business and nonprofit organizations can – and must – lead the way.

Trust cannot be imposed by the government, nor can it be proclaimed by a single company operating in a vast marketplace, and that has been true for decades. The building blocks of trust must come not just from businesses themselves but ideally from the industries of which they are a part.

Now is not the time for businesses and nonprofits to go to extremes either. A middle way – a pathway that is built on a strong corporate governance foundation with a keen cognizance of the law – is the optimal path forward for continued innovation.

Business and nonprofit leaders in the U.S. may not feel so weighty a responsibility in assessing the global impact of AI, but we must realize AI’s power to impact our organizations, our local economies, our sectors, and our nation.

Industry self-regulation can be a key differentiator for businesses and nonprofits to perform at their most effective level, especially when it comes to engaging with emerging technologies such as AI. But the question is, as a private sector leader, what does the road map look like?