Every medium and large company in business will soon be using AI if they are not already. The Artificial Intelligence in general is a good thing. However at times the AI will be slightly different than what the rules call for.

In an article by Tina Bellon, Hyunjoo Jin and David Shepsardson of Reuters, Tesla makes wonderful cars to drive and more of workings are based on software. If there is concern with the software, the company sends an update, similar to the Microsoft updates you likely have seen on your computer. Sometimes the updates are not exactly what the rules are. If you drive and there is a stop sign, the police want you to actually stop and not do a rolling stop. In Tesla’s software, they had a feature for the vehicle which according to President Elon Musk on Twitter. the car simply slowed to -2 mph & continued forward if clear view with no cars or pedestrians. (in the eyes of safety officials that is a rolling stop). Tesla issued a software update to disable the function.

Tesla develops almost all of its software to allow for regular over the air updates. An analysis of public data showed 7 of Tesla’s 19 recalls since January 2020 or 37% were addressed with over the air software updates. The other recalls were something physical that had to be done at the dealerships.

When a software update is updated, the fix is less expensive than recalling the cars and all vehicles which need the fix receive it. Traditional recalls show an average compliance rate of 70 and that falls to 50% for older vehicles, according to the National Highway Traffic Safety Administration (NHTSA).

Linking to dividend paying stock, all companies want to do more for their customers and Artificial Intelligence and software will play a significant role. The issue will be the regulators – how they adapted to the new uses and how they regulated, given the fewer resources they have. At some point some companies will be similar to the risk reward as Elon, a rolling stop is not a stop according to law enforcement. What will companies do or how will they react?

There are more questions than answers, till the next time – to raising questions.