Compliance Costs of AI Technology Commercialization: A Field Deployment Perspective

Abstract: While AI technologies are progressing fast, compliance costs have become a huge financial burden for AI startups, which are already constrained on research & development budgets. This situation creates a compliance trap, as many AI startups are not financially prepared to cope with a broad spectrum of regulatory requirements. Particularly, the complex and varying regulatory processes across the globe subtly give advantages to well-established and resourceful technology firms over resource-constrained AI startups [1]. The continuation of this trend may phase out the majority of AI startups and lead to giant technology firms' monopolies of AI technologies. To demonstrate the reality of the compliance trap, from a field deployment perspective, we delve into the details of compliance costs of AI commercial operations.