The global debate over artificial intelligence regulation reached a critical juncture this week, with governments and industry leaders clashing over oversight approaches while critics question AI's fundamental limitations. President Donald Trump signed an executive order earlier this month to block U.S. states from regulating AI, centralizing authority at the federal level.
Major technology companies including Meta, Microsoft, OpenAI, and Google supported Trump's earlier effort to pass a 10-year ban on individual state AI regulations. The legislative provision failed to cross the finish line despite industry branding it as a safeguard for innovation, according to the Washington Examiner.
Canada shifted its AI policy direction dramatically under Prime Minister Mark Carney, moving from regulation-focused legislation to innovation-driven strategy. Artificial Intelligence Minister Evan Solomon vowed the government wouldn't "over-index" on AI regulation, telling The Canadian Press that Canada wouldn't go it alone if the United States and China weren't interested in AI governance.
Fundamental AI Limitations Questioned
Conservative commentator Robert Gore published a scathing critique questioning AI's fundamental value proposition. "Never has humanity expended so much on an endeavor for which it will receive so little as the Artificial Intelligence project," Gore wrote on Conservative Angle.
Gore argues AI designers fundamentally misunderstand human intelligence by assuming it operates through definable data processing protocols. He contends AI cannot replicate human curiosity, questioning, or innovation generation - capabilities that remain mysterious even to neuroscientists.
Business data supports skepticism about AI's immediate value. According to media coverage cited by Gore, MIT found that 95% of corporate AI pilot programs fail to produce measurable business value. S&P Global Market Intelligence reports 42% of companies have already scrapped their AI initiatives.
The regulatory landscape shows increasing divergence between major economies. The European Union continues implementing its AI Act while acknowledging criticism about overregulation. EU executive vice-president Henna Virkkunen told Canadian media the bloc wants to implement policy in an innovation-friendly manner while cutting red tape.
Canada's Solomon announced new AI agreements with Germany, the U.K., and the EU at the G7 industry ministers' meeting in Montreal earlier this month. He maintained Canada's approach hadn't changed despite signing memorandums with pro-regulation Europe, seeking a "sweet spot" between EU over-regulation and U.S.-China innovation focus.
Under Carney, Canada allocated $925.6 million for sovereign AI infrastructure in its fall 2025 budget, though only $125.6 million represented new funding. The previous Trudeau administration had committed $2.4 billion to AI development in 2024, primarily for computational power and sovereign infrastructure.
Industry Voices Dominate Policy Discussions
Critics note industry voices dominate AI policy discussions in multiple jurisdictions. Heidi Tworek, a professor at the University of British Columbia, told The Canadian Press that Carney's AI task force composition shows "too weighted toward industry voices."
Similar concerns emerge in the U.S. debate. Daniel Cochrane of the Heritage Foundation's Center for Technology and Human Persons argues powerful corporations have manipulated market forces, creating products with addictive qualities while eliminating true consumer choice through social penalties.
Peter Thiel offered a different critique during a 2024 interview with Joe Rogan, suggesting AI naturally lends itself to centralization. "I had this one-liner years ago where it was 'if we say that crypto is libertarian, can we say that AI is communist?'" Thiel mused, warning that governments powerful enough to regulate AI could develop totalitarian characteristics.
Businesses report practical challenges with AI implementation beyond regulatory concerns. Gore describes "work slop" - AI-generated content that appears polished but requires painstaking human correction. MIT Sloan research indicates AI adoption can lead to initial productivity losses, with gains depending on major organizational and human adaptation.
Even McKinsey, described as one of AI's greatest evangelists, warns that "piloting gen AI is easy, but creating value is hard." The consulting firm notes AI only produces value after major human and organizational change, suggesting the technology has not removed human labor but hidden it behind algorithms and interfaces.
Mark Daley, chief AI officer at Western University, frames the technology differently, calling AI and compute "nation-building infrastructure platforms" comparable to 21st-century railroads. He told Canadian media the government appointment of an AI minister sends crucial signals about national priorities.
Surveillance and Control Concerns
Gore's critique extends to surveillance implications, arguing AI's data collection and manipulation capabilities form the technological foundation of a surveillance state. He suggests some promoters understand AI will never approach human intelligence but use the claim to attract capital and government support.
The Trump administration's Genesis Mission, described as a Manhattan Project-scale effort to incorporate AI across government and private sectors, raises concerns about federal overreach. Trump's executive order federalizing AI regulation follows earlier industry-supported efforts to prevent state-level intervention.
Paul Samson of the Centre for International Governance Innovation told The Canadian Press that many countries want Canada to take a more active role in international AI governance, particularly regarding nuclear weapons access restrictions. However, Canada remains hesitant due to "the Trump factor and the U.S. factor of big tech."
The debate extends to AI's economic impact and innovation potential. Gore argues consensus-based AI may retard innovation more than it promotes it, citing historical examples where expert consensus opposed breakthroughs like human flight. He suggests AI reflects weighted average consensus that often opposes disruptive innovation.
Canada's focus on "sovereign AI" - developing and controlling AI within national borders - ties into Carney's emphasis on major projects and national infrastructure. The government has cited sovereign cloud computing as a goal, though no announced projects specifically address this infrastructure.
As the debate continues, fundamental questions remain about AI's true capabilities versus marketed promises. With significant financial investments at stake and regulatory frameworks still evolving, the technology's trajectory will depend on balancing innovation incentives with appropriate safeguards against misuse and overreach.
