Why AI Regulation Matters?

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As Artificial Intelligence continues to evolve at an unprecedented pace, Indonesia AI Institute (IAII) raises an increasingly urgent question: Are we prepared with regulations that protect all stakeholders from the potential negative impacts of AI?

One highly visible example is the growing trend of transforming personal photos into Ghibli-style illustrations using AI. Today, anyone can create visually appealing artwork within seconds, even without artistic skills. However, behind this convenience lies a major issue that often goes unnoticed: copyright protection. Many AI models are trained on copyrighted creative works without the permission of their original creators.

There are two major consequences of inadequate AI regulation that require serious attention:

  1. The Potential Erosion of Creative Workers’ Income. An increasing number of people are turning to generative AI tools to produce creative works that previously required professional expertise and specialized skills. Without protective regulations, creative professionals—including illustrators, photographers, and graphic designers—may gradually lose important sources of income.
  2. Copyright and Accountability Challenges. AI systems are capable of generating outputs that closely resemble human-created works. However, when copyright infringement occurs, who should be held responsible? Is it the user, the AI developer, or the platform provider? This question remains unresolved in many jurisdictions, including Indonesia.

Indonesia has already issued the Ministry of Communication and Informatics Circular Letter No. 9 of 2023 concerning Artificial Intelligence Ethics. However, the document serves primarily as an ethical guideline rather than a legally binding regulation. While it encourages AI developers to be transparent, accountable, and unbiased, it does not yet provide clear legal standards or enforcement mechanisms.

As a result, a significant regulatory gray area remains, creating opportunities for misuse while leaving individual rights including intellectual property rights without adequate protection.

AI regulation should not be viewed as a barrier to innovation. On the contrary, effective regulation serves as the foundation for ensuring that technological progress benefits all stakeholders fairly. Without clear rules, those most vulnerable including artists, creative professionals, and the general public bear the greatest risks.