Practical Principles for AI Cost and Compute Accounting

Stephen Casper, Luke Bailey, Tim Schreier

Keywords: governance, risk, threshold, distillation, regulation, policy

TL;DR: We propose seven principles for designing AI cost and compute accounting standards that (1) reduce opportunities for strategic gaming, (2) avoid disincentivizing responsible risk mitigation, and (3) enable consistent implementation.

Abstract: Policymakers increasingly use development cost and compute as proxies for AI capabilities and risks. Recent laws have introduced regulatory requirements that are contingent on specific thresholds. However, technical ambiguities in how to perform this accounting create loopholes that can undermine regulatory effectiveness. We propose seven principles for designing AI cost and compute accounting standards that (1) reduce opportunities for strategic gaming, (2) avoid disincentivizing responsible risk mitigation, and (3) enable consistent implementation across companies and jurisdictions.

Submission Number: 4