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The future is on today's ballot. Kind of.

How the next wave of technology is upending the global economy and its power structures
Nov 08, 2022 View in browser
 
POLITICO's Digital Future Daily newsletter logo

By Derek Robertson

People cast their voting ballots at a mail in drop off box.

People cast their voting ballots at a mail in drop off box on in West Palm Beach, Fla. | Saul Martinez/Getty Images

Elections, you might have heard, have consequences.

Today's midterms obviously matter for hot-button issues like abortion, elections in their own right , and crypto, as my colleague Ben Schreckinger reported yesterday . Tech companies have plenty of interests, like privacy and antitrust, that could pivot with a change in Congress.

But when it comes to the further cutting edge—forward-looking technologies like quantum computing, AI, virtual reality, and the metaverse—it's harder to parse what's at stake, even in a big midterm like this one.

The electoral stakes feel lower in part because "the future," hazily defined as a set of technologies, just isn't a very partisan issue. If anything, it's a frontier that both parties are eager to seize. Especially amidst a global competition with China, not even the most reactionary politicians want to be seen as impeding our technological progress: Look at this year's Chips and Science Act , which created a $52 billion subsidy for semiconductor manufacturing and research on topics like quantum and AI, and was passed with solid (by modern standards) bipartisan support in both chambers of Congress.

"My best guess is that the results of the midterms will have little impact on these areas or cause any significant change in federal policy," said Edward Longe, director of the Center for Tech and Innovation at the James Madison Institute , while noting that a Republican Congress could pursue a more hawkish tech stance toward China and that such a thing might ease their usual squeamishness about big federal spending outlays.

That doesn't mean, of course, that new technologies are totally insulated from the government. Shane Tews, a fellow at the American Enterprise Institute who focuses on tech policy, told me that "anything that involves an algorithm will have a challenging year in 2023" — looking forward to the potentially widespread implications of Gonzalez v. Google , an upcoming Supreme Court case that could decide whether digital platforms are allowed to use algorithms at all in making content recommendations.

But even that case is decidedly backward-looking, dealing with the political and social havoc wrought by the technological status quo. When it comes to future applications of AI, the White House's " Blueprint for an AI Bill of Rights " wrangles with the task of creating a framework with which to move forward, but lacks a meaningful legislative counterpart (in contrast with Europe's attempt to create a sweeping regulatory apparatus for the technology). The election that matters moreso will be the one in 2024, as at least for now the executive branch is leading the charge.

One area where legislators are looking to tackle AI, with at least nominal bipartisan support, is the use of sweeping facial recognition algorithms by law enforcement via companies like the ever-controversial Clearview AI. Lawmakers on both sides of the aisle — including, as my colleague Brendan Bordelon pointed out to me, both current House Judiciary Chair Rep. Jerry Nadler (D-N.Y.) and Rep. Jim Jordan (R-Ohio), his would-be successor if Republicans take the House tonight — have expressed support for restrictions on that technology. But politics are, of course, contingent, and Jordan's focus on the potential use of facial recognition AI " in a political manner " could have unpredictable results depending on the overall environment.

As we saw a few years ago with Washington's sudden obsession with Facebook — its misinformation problem or its content policing, depending on your party — tech issues can show up on the political radar quickly and uncomfortably. At this point, however, many are safely off the screen.

Neither Democrats nor Republicans want, for example, the Chinese government to use quantum computers to break our encryption. Neither party wants children to be unsafe in new online worlds like the metaverse, as represented by a slew of bipartisan safety and privacy proposals introduced this year. And a tenuous consensus is forming around ramping up America's industrial capacity to build semiconductors and other advanced technologies here at home, in an increasingly fragmented global economy.

So yes, like all elections from the presidential race to your local school board, these midterms are important. But when it comes to world-shaping new technologies, the level of policy polarization in these midterms is more 1998 than 2018 — with both parties hoping to credibly claim the mantle of ushering in a new age of American innovation.

 

DON'T MISS POLITICO'S 2nd ANNUAL DEFENSE SUMMIT ON 11/16: The United States is facing a defining moment in the future of its defense, national security and democratic ideals. The current conflicts and developments around the world are pushing Washington to reshape its defense strategy and how it cooperates with allies. Join POLITICO for our second annual defense summit, "At a Crossroads: America's Defense Strategy" on November 16 in person at the Schuyler DC or join online to hear keynote interviews and panels discussing the road ahead for America's national security. REGISTER HERE .

 
 
crypto cataclysm

Sam Bankman-Fried speaks

Sam Bankman-Fried. | Craig Barritt/Getty Images for CARE For Special Children

On any other day than Election Day, it'd be the headline story: FTX founder Sam Bankman-Fried shocked the crypto and finance worlds today by selling his platform to rival company Binance.

The sale came amid widespread concerns about the FTX exchange's liquidity, largely whipped up by Binance chief Changpeng Zhao himself. Over the past three years of FTX's existence Bankman-Fried made himself into not just a major player in the crypto world, but in politics, spending lavishly on Democratic primaries and to lobby in favor of legislation that would create regulatory clarity around crypto and put it under the purview of the Commodity Futures Trading Commission.

Bankman-Fried said in a tweet that the sale only applies to FTX.com, the site's international platform, and not its U.S. subsidiary FTX.us. The deal is still pending, but it creates a huge question mark for the future of a new Democratic mega-donor whose spending this cycle was second only to George Soros.

DON'T TRY THIS AT HOME — SERIOUSLY

Relax, it's just a game.

Or, don't. That's the philosophy of Oculus and Anduril founder Palmer Luckey, who has purportedly built a VR headset that will detonate explosive charges and kill its wearer in real life should they "die" in the game they're playing.

Luckey described in a blog post how the headset was influenced by an anime series titled "Sword Art Online," which features a similar "you die in the game, you die in real life" conceit. "At this point, it is just a piece of office art, a thought-provoking reminder of unexplored avenues in game design," Luckey writes. "It is also, as far as I know, the first non-fiction example of a VR device that can actually kill the user. It won't be the last."

Free advice: If someone who has developed the first non-fiction example of a VR device that can actually kill the user invites you to a beta session, for anything at all, consider politely declining.

the future in 5 links

Stay in touch with the whole team: Ben Schreckinger (bschreckinger@politico.com); Derek Robertson ( drobertson@politico.com ); Steve Heuser (sheuser@politico.com); and Benton Ives (bives@politico.com). Follow us @DigitalFuture on Twitter.

If you've had this newsletter forwarded to you, you can sign up and read our mission statement at the links provided.

 

DON'T MISS A THING FROM THE MILKEN INSTITUTE'S MIDDLE EAST AND AFRICA SUMMIT : POLITICO is partnering with the Milken Institute to produce a special edition "Digital Future Daily" newsletter with insider reporting and insights from the Milken Institute's Middle East and Africa Summit happening November 17-18. Hundreds of global leaders will convene, highlighting the important role connection plays in advancing global well-being. The special edition will be the only Digital Future Daily newsletter sent on November 17-18. As a subscriber to Digital Future Daily, you will receive the special edition version for those two days. Learn more about the Milken Institute's Middle East and Africa Summit .

 
 
 

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