Why Artificial Intelligence Stock C3.ai Sank Today
Could the boom in artificial intelligence (AI) stocks be coming to an end? It isn't likely, given the excitement over the technology, but on Tuesday, there was an indication that some investors might be pausing for breath. Bellwether AI stock c3.ai (NYSE: AI) took a 0.6% hit to its share price on a day when the S&P 500 index crawled marginally higher. A development in the regulatory sphere was the main cause of the drop.
The European Union (EU), which tends to be more protective of its consumers than the U.S., has passed a new law regulating AI. The straightforwardly named AI Act places applications of the technology into three risk categories.
The first is what the Act terms "unacceptable risk," which covers government-run social scoring; the EU cited China's long-running program as an example. The second is "high-risk," which includes resume-scanning tools that rank job candidates -- these would be subject to a number of legal requirements. The third category includes everything else, which will generally be left unregulated.
Source Fool.com
