In this edition of Author Talks, McKinsey Global Publishing’s Raju Narisetti engages in a thought-provoking conversation with Marietje Schaake. Schaake, a nonresident fellow at Stanford’s Cyber Policy Center and the Institute for Human-Centered AI, delves into her new book, which explores the complex relationship between technology and democracy. As governments grapple with the unregulated digital landscape, Schaake offers insights and potential solutions to offset the power imbalance and adopt a more democratic approach to governance.

Uncovering the Power Shift in the Digital Age

Understanding the 'Digital Arms'

Marietje Schaake's book serves as a call to action against the excessive power of tech companies. In her interactions with local governments, enforcement bodies, and regulators, she realizes that while many recognize the issue, they often lack a clear starting point. The problem extends beyond disinformation and mental health; it touches on who has the power over our digital lives.This realization leads Schaake to explore the concept of an "accountability gap." Over the past decades, governments have tended to adopt a hands-off approach to tech regulation, trusting market forces and technology itself. As a result, there is a lack of guardrails, regulations, and laws to hold tech companies accountable. This lack of accountability allows companies to take risks and cause harm without facing consequences.

The Role of Technology

Schaake emphasizes that her book is not against technology but rather about the power shift from the public to private hands. Technologies like spyware, which violate people's privacy by hacking into their devices, have amassed significant power. Even powerful figures cannot escape its reach. The problem lies in the fact that some companies have used this power to the detriment of democracy.By addressing specific technologies that harm democracy and the broader trend of companies' growing power, Schaake aims to shed light on the issues and propose solutions.

Regulating Tech: Key Approaches

There is a sense of urgency in Schaake's book, but it also offers hope. She believes that there are many things that can be done to rebalance the power and promote democratic governance. One approach is to anticipate the next wave of emerging technologies by returning to core principles such as nondiscrimination, antitrust, access to information, and transparency.Regulators should be able to act quickly without waiting for specific laws to be adopted. The regulatory process is often slow compared to the rapid pace of technological advancements, leading to a growing gap between reality and policy. Therefore, it is crucial to innovate governance and democratic policies simultaneously.

The Precautionary Principle

When it comes to bringing new AI applications to market, there is a rush to push them out without fully considering the unintended consequences. Schaake suggests learning from the EU's precautionary principle. This principle encourages a pause between the discovery of an innovation and its release into the market to assess its potential impacts.Applying this concept to AI and other emerging technologies means taking a closer look at the products and technologies to ensure that we understand their implications for society. By doing so, we can seek solutions and avoid the pitfalls of unconstrained technological development.

The 'Too Big to Fail' Principle in Tech

Big tech companies have become crucial nodes in our society, similar to financial-services companies. The overreliance on their services without proper obligations can lead to vulnerabilities and system failures. Schaake believes that by putting more checks, oversight, and responsibility on these companies, we can reduce the occurrence of incidents like the recent CrowdStrike incident.Ensuring the resilience, responsibility, and functionality of tech companies is essential for the stability of our digital society.

The Need for a Government 'Technology Expert Service'

During her time in the European Parliament, Schaake noticed the lack of technological expertise in regulatory bodies. This lack makes legislators vulnerable to lobbying by the powerful tech industry. By creating a government "technology expert service," lawmakers can receive independent and expert advice on how tech works.This service would help lawmakers make more informed decisions and avoid being swayed by dominant lobbying narratives. It would enhance the quality of legislation and enable a better understanding of the technological aspects of the issues at hand.

The Role of Data and Privacy

Data plays a central role in both the problem and the solution of tech's impact on democracy. While companies hoard large amounts of data, it is also crucial to explore ways to give individuals more agency over their data. However, the economic lens through which data is often viewed poses challenges.People may find it difficult to make fully informed decisions about their data due to power asymmetries and economic incentives. The question remains how to ensure that individuals can navigate the use of their data effectively while maintaining their privacy and rights.

Regulating Large Tech Platforms

The EU's recent focus on scale as a criterion for imposing obligations on big tech platforms makes sense. Capital also plays a role in distinguishing between for-profit and not-for-profit platforms. For example, the incentives on platforms like WhatsApp and Signal differ significantly.Regulating large tech platforms requires a careful consideration of their impact and the potential unintended consequences. Each platform has its own set of dynamics and should be evaluated accordingly.