arXiv Machine Learning
Market Incentives for AI Safety Investment
Read the original on arXiv Machine Learning →The paper examines how profit motives influence safety investment in AI, focusing on a supply chain with an upstream large language model (LLM) provider and multiple downstream firms. Using a game‑theoretic model, it shows that downstream competition tends to drive firms to invest more in safety than would maximize industry profit, while the upstream provider may underinvest because it does not capture all the benefits of safer models. The study also explores how regulatory interventions could shift incentives and affect overall model safety.
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