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What is algorithmic disgorgement?
Algorithmic disgorgement is the practice by regulators of forcing companies to destroy AI models and their associated data as punishment for illegal data practices or AI applications. Regulators have traditionally sought monetary disgorgement – repayment of ill-gotten gains or fines. In contrast, algorithmic disgorgement gives regulators the ability to directly affect how businesses operate, with potentially significant impact since models can take years and millions of dollars to develop.