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How to Fix the Platform Economy

Digital-platform companies could deploy the latest wave of artificial intelligence much more responsibly than they have so far, and two current court cases serve as warnings to those pursuing socially destructive business models. But we also need concerted public-policy action to fix the industry.

BOSTON – Meta (Facebook), Alphabet (Google), Microsoft, Twitter, and a few other tech companies have come to dominate what we see and hear on the internet, shaping hundreds of millions of people’s perceptions of the world. In pursuit of advertising revenue, their algorithms are programmed to show us content that will hold our attention – including extremist videos, disinformation, and material designed to stimulate envy, insecurity, and anger. With the rapid development of “large language models” such as ChatGPT and Bard, Big Tech’s hold on impressionable minds will only strengthen, with potentially scary consequences.

But other outcomes are possible. Companies could deploy the latest wave of artificial intelligence much more responsibly, and two current court cases serve as warnings to those pursuing socially destructive business models. But we also need public-policy interventions to break up the largest tech companies and to tax digital advertising. These policy levers can help change Big Tech’s pernicious business model, thereby preventing the platforms from inflicting so much emotional harm on their users – especially vulnerable young people.

The legal cases include Gonzales v. Google, which is currently before the US Supreme Court. At issue is the tech industry’s insistence that Section 230 of the 1996 Communications Decency Act exempts platform companies from any liability for third-party content that they host. If platforms are acting more like news outlets than mere online repositories when they recommend videos, tweets, or posts, they should be held to the same standard as established media, which, under existing defamation laws, are not allowed to publish what they know to be untrue.

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