AI pressures professions to accept artificial expertise
Feb 11, 2025
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Rebecca Haw Allensworth, a law professor at Vanderbilt University and author of "The Licensing Racket," dives into how AI is transforming occupations requiring licenses. She highlights how technology is allowing consumers to bypass licensed professionals, raising concerns about accountability and quality. The discussion also covers the challenges faced by startups in regulated fields and how the pandemic has initiated changes in telehealth licensing practices. Allensworth emphasizes the urgent need for updated regulations to balance innovation with professional standards.
AI's ability to create legal documents challenges traditional licensing, potentially undermining established professions and shifting consumer preferences toward accessible alternatives.
Licensing boards must adapt to technological advancements by incorporating tech experts to improve regulations and enhance access to essential services, especially in healthcare.
Deep dives
Impact of AI on Occupational Licensure
AI is increasingly enabling consumers to bypass licensed professionals, raising concerns about the legal implications and the quality of service provided. For instance, tools like ChatGPT can generate legal documents such as contracts, which traditionally required licensed attorneys to draft. This shift complicates the enforcement of licensure regulations, as it's challenging to determine liability in cases of legal malpractice or unauthorized practice. Ultimately, the rise of AI has the potential to undermine established professions, as clients seek more affordable and accessible alternatives to traditional legal services.
Challenges and Opportunities in Modernizing Licensing Boards
Licensing boards have historically resisted adapting to technological advancements, but recent events like the COVID-19 pandemic have forced some changes, particularly in telehealth. The rapid adoption of remote healthcare services demonstrated the necessity for boards to reconsider their restrictive licensing requirements. However, these boards often lack understanding of the consequences of regulation on innovation, as they are composed mostly of professionals focused on maintaining their own standards. To embrace technological change fully, licensing boards may need a restructuring that includes experts in technology and regulatory impact, which could enhance access to necessary services.
About 1 in 4 U.S. jobs requires an occupational license, according to the National Conference of State Legislatures. Licensing requirements differ by state and can apply to everyone from barbers to lawyers. The general idea, of course, is to keep unqualified workers out. But technology, and specifically artificial intelligence, is making inroads. Rebecca Haw Allensworth, a law professor at Vanderbilt University, is also author of the new book “The Licensing Racket: How We Decide Who Is Allowed to Work, and Why It Goes Wrong.” She told Marketplace’s Stephanie Hughes that in some instances, AI is letting consumers bypass licensed workers altogether.
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