Finance Daily
Monday, 12 October 2026

AI is less regulated than milk, Microsoft president says

The president of Microsoft, Brad Smith, has stated that artificial intelligence (AI) is currently subject to less regulation than everyday items like milk and household appliances. During an interview, Smith emphasized the urgent need for global safety regulations concerning AI technologies, including requirements for companies to inform individuals if their systems are compromised by malicious AI. He also advocated for the necessity of external evaluations of AI products before they are launched to the public.

Smith's assertions contrast sharply with the views of former President Donald Trump, who has suggested that the AI industry should primarily self-regulate to prevent American companies from falling behind their Chinese counterparts. In his remarks, Smith pointed out, "At this moment, your washing machine is subject to more safety regulations than AI. Every carton of milk in the grocery store is inspected and regulated." This statement reflects growing concerns among experts who believe that the rapid advancement of AI poses significant risks to society.

In an interview with the BBC's Big Boss Interview, Smith referred to AI as both a “tool and a weapon,” highlighting the pressing need for regulations to govern its use. He urged for immediate action, stating, "Let's get started today." He proposed that companies should incorporate "emergency brakes," or 'kill switches,' that could halt or slow down AI operations if they become uncontrollable. Furthermore, he suggested that firms should be legally required to create "incident reports" that inform affected individuals if their AI systems malfunction or behave unexpectedly. Smith also recommended that independent government evaluators assess new AI technologies before they are released.

Smith's perspective diverges significantly from that of Trump, who has consistently claimed that the nation that excels in AI will dominate future technology. Trump has frequently remarked, "Whoever wins AI, wins." However, Smith expressed optimism that the U.S. government might be more open to UK-led AI regulations than Trump's rhetoric suggests, indicating that Washington views the UK more favorably than it does the European Union. "In Washington DC, people don't regard the UK and London the same way they do Brussels – that's an advantage," he explained.

Reflecting on the challenges posed by AI, Smith stated, "When you consider AI agents that have operated beyond human control and powerful models that threaten global cybersecurity, I believe the moment has arrived." He called for a calm yet firm dialogue to unite stakeholders in the conversation about AI regulation, expressing hope that Microsoft and the UK could play pivotal roles in this effort.

Smith also highlighted the importance of collaboration with "independent auditors" to ensure that AI systems function as intended and do not inadvertently compromise other technical systems. He expressed support for recent initiatives in this area, stating, "It's a good step, it's a necessary step... But I don't think it's sufficient any longer." He cautioned that while responsible companies will comply with regulations, the real concern lies with those that may not adhere to ethical standards.