American efforts to establish rigorous safety standards for advanced artificial intelligence face complications from rivalry with Chinese competitors, former SEC Chair Gary Gensler warned. He questioned whether high levels of capital expenditure by U.S. AI firms will generate sufficient revenue to justify the investment, identifying these costs and safety risks as key industry obstacles.

The U.S. currently leads the field in AI, though that position is pressured by the need to maintain speed against foreign models. Gensler noted that this tension makes it difficult for firms to navigate the necessity of imposing guardrails while remaining competitive in a global market.