Digital Technologies in Service of Entrepreneurship: New Challenges for Regulation

The article examines new challenges for regulators arising from an increasing use of artificial intelligence (AI) and technologies for collecting and processing big data by companies. The purpose of the study is to identify an optimal theoretical approach to the regulation of AI use in the field of pricing and optimization of work with consumers. The manipulation of consumer behavior and the exploitation of their cognitive deviations based on the collection of big data, the strengthening of the problem of price discrimination and the risks of difficult- to-detect price collusion in the context of the use of algorithmic pricing are highlighted as new problems requiring regulatory intervention. The main factors that must be taken into account when choosing measures regulating the use of AI by companies include ultra-fast pace of development of digital technologies and frequent perception of them as a “black box”, the decreasing effectiveness of traditional methods of economic analysis in dynamically changing conditions, the need for an integrated approach to solving many problems and coordinating the actions of various regulatory authorities. In accordance with this, “smart regulation” is recognized as the most optimal approach to regulating the use of AI by companies. Despite the fact that its implementation is associated with high transaction costs, this approach allows us to level out the problems of using AI, ex ante reduce the likelihood of new risks emerging and at the same time maintain the positive effects brought by AI. The tools used within the framework of “smart regulation” of AI include the creation of “regulatory sandboxes” and mechanisms for preliminary testing of AI algorithms, expansion of incentives for self-regulation, development of counter-algorithms, etc.