After a tumultuous week in the corporate artificial intelligence world, an expert says lack of regulation from government agencies has led to a chaotic time for the AI sector. 

OpenAI, one of the world’s most valuable startups, fired its CEO Sam Altman last Friday over a disagreement with board members over the future of the company and its status as a non-profit. Microsoft quickly hired Altman, but OpenAI then backtracked and rehired him five days after letting him go.

The root of the issue, according to Bloomberg News, stems from a conflict between Altman’s desire to turn OpenAI into a company that builds products and attracts customers and the board’s concerns over potential harms related to AI.  

Cyrus Mewawalla, head of thematic intelligence at GlobalData, told BNN Bloomberg on Thursday that if governments had stepped in and regulated the AI industry, companies wouldn’t have been left to tackle these complex issues on their own.

“Part of the reason we're in this problem is because of the biggest theme facing tech investors today, and that is regulation or rather, the lack of regulation,” he said in a television interview. 

“The board of OpenAI was forced to take an ethical position because the regulators have given it no guardrails or boundaries with which to live in.”

A lack of regulation has also led to volatility in the sector, Mewawalla argued.

“Tech is running wild because there's a lack of regulation,” he said. “If we just imagine if OpenAI was a listed company, the turmoil it could have caused on the markets.”

With files from Bloomberg News