The P in PESTEL is often mightier than the T

The P in PESTEL is often mightier than the T
Photo by Gustavo Sánchez / Unsplash

While the U.S. Congress is doing whatever, the European Union has reached a comprehensive deal on AI regulation for generative AI tools like OpenAI's ChatGPT and Google's Bard.

The first key point imposed on the tech sector is about safeguards and exemptions on faces live scanning of faces and a clear prohibition on categorizing people by sensitive characteristics, or limiting use in public spaces. Incurred penalties are not trivial and could go up 7% of the global turnover of companies caught in infringement. Rules will also be created for basic transparency requirements for developers of large language models, while systemic risk models must sign a voluntary code of conduct.

If strategically considering the AI sector's future through a PESTEL analysis, always factor in that albeit slow-moving, the Political factor ends up always beating the faster Technological one...


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PESTEL is an analytical framework used in strategic management and business analysis to understand and evaluate the external macro-environmental factors that can impact an organization. The acronym "PESTEL" stands for Political, Economic, Social, Technological, Environmental, and Legal factors.
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