The US has urged G20 members to avoid creating new AI regulations and take a hands-off approach. According to Reuters, US tech adviser Michael Kratsios made the call at a G20 Innovation Ministerial meeting in Chapel Hill, North Carolina, on Tuesday. Kratsios, who co-hosted the two-day meeting, urged countries to adopt the “Carolina Principles”. The approach would focus new rules on novel situations involving AI. The push comes as governments debate how to regulate increasingly capable AI systems.

The Carolina Principles: Call on countries to avoid creating entirely new regulations for AI. Instead, governments should focus on novel situations involving the technology. Kratsios said policymakers should not treat every emerging technology as a first-of-its-kind policy problem. He urged countries to apply existing regulatory frameworks where possible.

Kratsios said countries that signed the principles agreed to this approach. He also told reporters that China had signed the principles. However, he did not provide a copy of the document. China’s embassy did not immediately respond to Reuters’ request for comment.

What it means for US AI companies: Looser regulation could allow US AI companies to release new models without facing additional regulatory requirements. The approach also aligns with the interests of major American AI companies seeking fewer restrictions globally.

Several industry leaders addressed the G20 meeting. Google DeepMind CEO Demis Hassabis called for governments to establish safety tests for AI systems. Meta CEO Mark Zuckerberg urged countries not to restrict open-weight AI models. His position follows Meta’s recent push to establish itself as a leader in open-weight AI.

SpaceX CEO Elon Musk criticised European Union (EU) technology regulations. He said the EU’s policies inhibit progress for companies. Musk also urged countries outside China to develop new energy sources for data centres.

Why does this matter? AI regulation is becoming part of the wider contest for technological and geopolitical influence. The US explicitly aims to export its AI systems, hardware and standards, arguing that the country with the largest AI ecosystem will shape global standards. The EU is pursuing a different model, using the AI Act to promote its regulatory approach globally. China is pushing for multilateral AI governance, stronger safety rules and international standards, while promoting its own open-weight AI models and ecosystem.

Meanwhile, Washington is increasingly linking AI cooperation to its strategic competition with Beijing. It was reported last month that the US was considering asking countries to choose between American and Chinese AI alliances. The G20 debate therefore goes beyond regulation: it could help determine which power bloc sets the rules for the next generation of AI.

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