Ai Regulation Vs. Ai Standardization

The key specificity of Artificial Intelligence today is that it is a fast-evolving field with yet unknown capabilities and potential. In technical research as well as in media there are new emerging AI-related topics almost every day. We hear a lot about risks of AI but also about so many useful AI applications that help people and companies benefit from better lives or enhanced results of their activity. Businesses developing AI solutions worldwide face significant challenges not only in designing processes but also in putting on the market safe, efficient and reliable technologies. Thus, there is huge time pressure to set the necessary regulatory frame that will enable proper market functioning and encourage innovation in this area. On the other hand, there is considerable pressure from society to have a safe and trustworthy environment to use AI technology. Such expectations are only reasonable as AI development affects all the society and economy at all levels.Therefore, it's important to identify the best regulatory option. Is there a need for binding rules and coercive state measures to regulate markets and social behavior? Or could the consensual technical requirements and ethical principles provide the necessary direction for a reasonable development, function and use of AI? This paper aims at formulating the most suitable regulatory framework to guide further development of AI. The two-step research methodology focuses on analyzing the incipient regulatory initiatives on AI, exploring the published articles in the area as well as the recently approved standards at international level. Based on this analysis authors will assess the pros and cons for the two regulatory options and will further elaborate the arguments for the best setting to regulate AI.