The British Diplomat Trying To Win Over The U.S. Tech Industry

SAN FRANCISCO. In a glass corner of a skyscraper on Street Street, Joe White is trying his hand at one of America's newest and most challenging diplomatic jobs: British Ambassador to Silicon Valley.

Silicon Valley is not a country, although it is the richest of all but a few countries. And white is far from your typical diplomat. Between his time as a tech executive and venture capitalist in the San Francisco Bay Area and his wife as an executive at Alphabet, the parent company of Google, White has been an integral part of the Valley long before London named him its ambassador. technology in December 2020. .

From his British Consul General's office or residence in San Francisco's leafy Presidio neighborhood, Welsh and Scotch whiskey investor Andreessen Horowitz and banquet managers elegantly meet at home for stunning tastings.

"Maybe some fish and chips and stuff like that," White said.

He was sent here by the white government to deliver a message that has left Britain virtually stranded as a start-up: as the European Union continues its crackdown on big tech, industry is welcoming it to a newly empowered Britain.

"The European Union can be more prescriptive in this area than we are," said Paul Scully, Britain's technology and digital economy minister and one of White's bosses in the country. Scully said his government's approach, unlike Brussels', "doesn't involve a big technical attack".

As London builds a new regulatory apparatus outside the European Union, it believes a "simplistic" approach to regulation could attract top tech talent and major investment to the UK, particularly in artificial intelligence, currently the fastest-growing technology in the UK. world. Transition regulators around the world. White wants big US tech companies to work with the UK on new "innovation-friendly" rules that could theoretically boost the UK's tech economy through an influx of AI cash.

“We need to move forward in a way that actually results in positive outcomes, facilitating innovation rather than stifling it,” White said. “The UK has a large number of researchers and one of the largest laboratories. So this will make a difference."

With the UK barely moving between the US and the EU after Brexit, White's campaign is at the center of his government's big plans for the future. White's boss, British Prime Minister Rishi Sunak, on his first visit to the White House last week, used much of his first visit to the White House to promote Britain's AI leadership ambitions.

If White and his boss succeed, Britain could take the lead in setting new rules for artificial intelligence and other technologies.

"When things go well, I think other countries will copy it and export it," White told Politico. "And I think we'll be very happy if they do."

US President Joe Biden appears to be on board. At a joint press conference with Sunak last week, he said he "hopes the UK will take the lead" on AI regulation. Biden also supported Sunak's plan to host an international AI summit in the United Kingdom later this year.

Even the UK's pro-regulatory neighbors are starting to look like artificial intelligence from London. As the European Parliament prepares to vote this week on a still-drafted EU law on artificial intelligence, French digital minister Jean-Noel Barraud has warned lawmakers to avoid stricter rules that could threaten the growth of ChatGPT in Europe. French President Emmanuel Macron is expected to deliver a speech on Wednesday – just days after Sunak raised the AI ​​flag – outlining how France will balance innovation and regulation for the rapidly advancing technologies.

Will Western regulators really try to emulate London in the fight against the spread of artificial intelligence?

The next tech superpower - maybe

Technically, Great Britain was not the first country to reach the wealth and prospects of the West Coast. That honor goes to Denmark, which sent a representative to the region in 2017. But the UK was ahead of the EU in San Francisco - the bloc's technical ambassador, Gerard de Graaf, did not appear in Silicon Valley for almost two years after of White's creation. shop. .

White, who is officially the British Consul General in San Francisco and also a "US Technology Ambassador", said his presence signals to Silicon Valley that his country is "back on the world stage". Although the UK is only 20 miles from the shores of Europe, it has been outside the EU's general market and rules since early 2020. Since then, London has sought its place in the global economy.

Technology is a big part of the dream. This year, Sunak, a self-proclaimed technologist, launched an ambitious plan to turn the island nation into an "international technology superpower" by 2030.

Part of this strategy is to create a third way of global technology regulation, a middle ground between the strict regulatory environment of the European Union and the largely unregulated environment of the United States. White calls Britain's approach to technology "proportional, fair, reasonable, sustainable, open to dialogue," adjectives he interprets as a veiled reflection of tough EU rules or Washington's crackdown on technology without teeth.

After nearly a decade of aggressive European regulators leading the way, London believes an alternative approach is desirable in Silicon Valley. The UK, whose tech sector recently passed the $1 trillion mark, surpassing the US and China, is well-positioned to take advantage of this appetite, White said.

"Of course we want to invest in the UK, of course we want British companies to do well in the US, of course we want to put the right balance of regulation in place to protect our citizens, of course we want to increase stability of supply. national security, White said. "And there's a lot going on [in Silicon Valley]."

While the EU has moved faster than its British and American counterparts in regulating AI, its AI legislation has not been well received by the US tech industry. Last month, OpenAI CEO Sam Altman suggested his company could shut down operations on the continent if laws were not eased.

Altman quickly rejected the offer, but the message was clear. As politicians around the world grapple with the spread of artificial intelligence and tech companies race to develop and implement smart models, White said tech leaders should see the UK as a partner that can operate by the rules it wants. to be determined. Lots of technical outages.

"Given that governments around the world are horrified by this, who would you like to have an ongoing conversation with in the hope of getting the outcome you deserve?" White said.

The technology ambassador pointed to his country's planned investment of $1.25 billion in state-of-the-art computing infrastructure, which so far dwarfs anything in the EU or even the US, as evidence that his country is serious.

"The UK will be able to develop and adapt these guidelines, the railways, whatever you want to call them... very quickly," he said. "And with rules, the best things go up, right?"

"Compliments at their best"

It's worth a reality check: While White often notes that the UK is a "second-tier market" for many US tech companies, this fact is only relevant when looking at the EU's 27 member states individually. Collectively, the European bloc reduces Britain's share of the world market and, artificially or not, London cannot unilaterally compete with the authority of Brussels.

De Graaf didn't hesitate to say: "We don't see the UK as a competitor," an EU tech spokesperson told Politico. "We don't need to convince Silicon Valley," he said.

What about the UK's efforts to challenge the EU's position as the West's de facto technology regulator? "We're not going to lose sleep over it," says de Graaf.

White admitted that England had lost out to Brussels. But he and others argue that if London can persuade a larger market like the US to adopt a more measured approach to technology regulation, the energy dynamic could change.

Pitch White changed Britain's close relationship with the United States.

Engineer Ambassador says he is trying to capitalize on the American craze for all things British , not just fish and chips. "In a way, it's a softer, sweeter story that makes people feel," says White. "You come home and they get the flag - there's a chance."

White notes that London's approach to technology management has Atlantic roots. Last year, California's groundbreaking Age-Friendly Design Code law incorporated key elements of the UK's Age-Friendly Design Code, an example of normative ideas that show how the UK can influence the US in technology.

Russell Wald, director of policy at Stanford University's Human-Centered Artificial Intelligence Institute, said Sunak and his administration now agree with Washington on AI.

"If you invest in AI development, your neighbors are very focused on big rules, and if your closest allies and relationships around the world still don't understand where they rule, you can follow them in that direction," he said. Wald.

De Graaff said it would be difficult for the UK to find an alternative in time for Europe to introduce AI rules. But White said tougher EU protections could ban some types of AI or prevent their use on the continent. If that happens, it will give London a chance to show what it can do.

"The companies we're talking to are British and American companies," White said. "I think a lot will depend on what they do and what governments they listen to."

The US tech industry was interested in White's sales plan, and his lobbyists were hiring more workers to prepare for a potential new headquarters in London.

"It's not surprising, seeing how some legislative efforts have worked in Qatar, and concluding that a different approach might be more valuable," said Matthew Schruers, president of the Computer and Communications Industry Association. . Lobbying firm Schrewers is in the process of opening a new office in London, and it's not the only Silicon Valley venture relocating to the UK - venture capital firm Andreessen Horowitz announced on Sunday that it plans to open its first international office in London.

But even if it manages to nudge the US towards the preferred tech regime, there are domestic issues that could undermine Britain's message to Silicon Valley. The country's next general election, expected around 2024, could remove anti-regime conservatives from power. And many British voters and advocacy groups disagree with London's approach to technology.

This tension has forced the British government to strike a balance between addressing voters' concerns and returning to industry. And Silicon Valley has so far expressed doubts that London's tech plans are friendlier than Brussels' rules.

"To say we're better than the EU, which has basically completely crippled its tech sector, is an understatement," said one industry source, who spoke on condition of anonymity to discuss the delicate interactions between regulators. global technology.

If White can get Silicon Valley to work with London on new rules (and if London can convince Washington or enough US states to adhere to and act on those rules), it could end regulatory dominance in EU growth on industry. across borders.

But even a successful attempt would result in the UK becoming somewhat subservient to the US, and it is not clear whether White and his government will be able to achieve this.

Young... Irish?

Ten years ago none of this made sense. The UK is closely tied to the EU and the tech industry is a loosely regulated, fast-growing sector that everyone loves. The main way to attract US tech companies to foreign jurisdictions was to offer low taxes, which led to a massive influx of headquarters to business-friendly Ireland.

But since the adoption of the EU's General Data Protection Regulation in 2016, the bloc has passed a series of laws that limit the use of personal data by tech companies, limit their monopoly power, expand and regulate protections that provide users. . AI planning.

The surge in activity is opening a chasm in relations with Washington, where big tech — despite often being a political punching bag — sees no real congressional control.

Unlike the US, the UK is free to enact new legislation with some predictability. And London is now drafting many of its tech rules post-Brexit, including the Internet Security and Antitrust Act, the Digital Markets, Competition and Consumer Protection Bill.

The proposal has been heavily lobbied by the global technology industry, which is far less optimistic about its potential impact than White's proposal.

WhatsApp, Meta's encrypted messaging service, threatened in March to pull out of the UK entirely if the internet security bill forced the platform to build a backdoor into its encrypted service. And the UK's Competition and Markets Authority, an independent body, recently blocked Microsoft from buying Activision, abruptly scuppering the world's biggest pending tech deal.

Hugh Milward, head of corporate, legal and external affairs at Microsoft UK, said: "It seems very strange that the UK government has proposed new legislation that will give [the CMA] more power to regulate technology ."

Millward speaks well of the UK's approach to new technologies, particularly in the area of ​​artificial intelligence. He called London's plan to invest $1.25 billion in new public computing power "very welcome." He also said the UK has "set the right policy" for AI regulation by focusing on AI use cases rather than discounting the technology in general.

But Millward also said Microsoft "can't look at these things independently."

"A good set of AI rules for England is very welcome," said Millward. "But this is in an environment where the CMA is doing nothing to encourage investment."

Microsoft's lobbyist said he likes the idea of ​​a tech-friendly third way in principle, but in terms of UK regulation, “At the moment we're seeing that the directions seem to be going in the opposite direction. "

British politicians across the spectrum defended the CMA. London is still pushing ahead with its antitrust legislation, which has broad support in the House of Commons.

The UK government has been toughening its tone on AI regulation since March, when it published a white paper promoting a "pro-innovative" approach.

And the opposition Labor Party, which many expect to form a new government next year, could hit AI. Its leader, Keir Starmer, told London Tech Week on Tuesday that the Labor administration would develop a "robust", "outstanding" regulatory framework for technology (though he avoided specifics).

«Мы далеки от того, где нам новый быть в вопросах регулирования», — Starmer said.

Civil society groups are also trying to get a seat at the negotiation table, claiming that they were excluded from government work because of the AI ​​risk. However, until now, few have proposed important new laws, such as the EU law on artificial intelligence.

American horse riding

London's plan to become a global player in technology regulation clearly depends on close relations with US lawmakers. And Great Britain is actively moving in this direction — in April, it joined the Washington-led Global Privacy Across Borders forum to provide an alternative to EU data protection, which stifled transatlantic data flows and angered American technology giants. And last week, Sunak and Biden agreed on cooperation in the field of AI regulation, which White called a «strong step» according to world standards.

Of course, Great Britain is not the only foreign jurisdiction that influences US technology rules. De Graaf noted that California takes the example of Europe in relation to various efforts, including data privacy.

There is also hidden tension in London, which is working with the United States on the integration of its technological policy. Despite leaving the EU in search of greater independence, White admits that Great Britain will not be able to realize its ambitious plans without hitching its wagon to economic power on the other side of the Atlantic.

"The reality of all economies, except for the United States and China, is that you cannot build a global platform company in the national economy," White said. Asserting that his country has no equal in terms of its technological talents or legal base, White said that British technological ambitions "will eventually lead to the big bloc".

And if the Silicon Valley is skeptical about White's commercial proposals, then this cannot be said about Washington or the US defense industry. Joe Felter, director of Stanford University's Gordian Knot Center for National Security Innovation and special government officer for international engagement at the Pentagon's Defense Innovation Unit, called Britain's plans to become a technological superpower by 2030 "a real opportunity to leverage their special strengths." ."

"The relationship between AI and quantum technology is very special," Felter said. He pointed to the relatively recent opening of a new London office by In-Q-Tel, a venture capital firm backed by the Central Intelligence Agency, as a sign that US venture capital investment in UK-based defense technology is accelerating.

"It's a signal that they now see the UK as a significant source of defense technology and intelligence contracts," Felter said.

Washington also sees nothing but profit in Britain's new, increasingly US-centric approach to technology.

"The US-UK alliance is an old and prosperous alliance, and it's always reinventing itself to meet the challenges of the moment," said Nathaniel Fick, the State Department's first ambassador for cyber and digital policy and a frequent liaison with White. "I think we've seen a significant realignment of the relationship over time, and this could be an early indicator of another realignment."

"The world can be a dangerous and unpredictable place," Fick said. "We need everyone's friend."

Tom Bristow contributed to this report.

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