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January 2021<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> WOR LD<br />

<str<strong>on</strong>g>Perspectives</str<strong>on</strong>g> <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong>


A NEW EUROPE PUBLICATION<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g><br />

<str<strong>on</strong>g>Perspectives</str<strong>on</strong>g> <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong><br />

Foreword by Adina Vălean<br />

European Commissi<strong>on</strong>er for Transport<br />

&<br />

Kyriakos Pierrakakis<br />

Greek Minister of Digital Governance<br />

In partnership with


The Cover<br />

EDITOR & PUBLISHING PARTNER<br />

Jerry Zagoritis<br />

ASSOCIATE EDITOR’S<br />

Nicholas Waller<br />

Ariti-Marina Alamanou<br />

EDITION COORDINATORS<br />

Vassilis Nanis<br />

LAYOUT & DESIGN<br />

Suman Haque<br />

LOGISTICS & OPERATIONS<br />

Irini Panagopoulou<br />

CONTRIBUTORS:<br />

Julia Anders<strong>on</strong><br />

Anna-Michelle Asimakopoulou<br />

Adam Bielan<br />

Iban Garcia del Blanco<br />

Sybrand Brekelmans<br />

Angeliki Dedopoulou<br />

Alexandra Geese<br />

Eva Kaili<br />

Hannes Kirchbaumer<br />

K<strong>on</strong>stantinos Kyranakis<br />

Abraham Liu<br />

Luis Neves<br />

Georgios Petropoulos<br />

Kyriakos Pierrakakis<br />

Dragos Tudorache<br />

Adina Valean<br />

Axel Voss<br />

Cover title: <str<strong>on</strong>g>Perspectives</str<strong>on</strong>g><br />

Illustrati<strong>on</strong> & C<strong>on</strong>cept: Lavrentis Choraitis<br />

Images: iStock by Getty Images & Shutterstock<br />

A publicati<strong>on</strong> by:<br />

ISSN number: 2593 - 4163<br />

Published by Brussels News Agency SPRL<br />

NEW EUROPE Tel. +32 2 5390039<br />

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Fax +32 2 5390339<br />

info@ourworld.co<br />

© 2021 Our World all rights reserved. No part of this publicati<strong>on</strong> may be reproduced, stored in a retrieval system, or transmitted in any form by any<br />

means, electr<strong>on</strong>ic or otherwise, without express permissi<strong>on</strong>. The Publishers accept no liability for third party views published, nor damage caused by<br />

reading, viewing or using our c<strong>on</strong>tent. All informati<strong>on</strong> is correct at the time of going to print, we accept no liabilities for c<strong>on</strong>sequent changes.


Editor’s Letter<br />

A<br />

few m<strong>on</strong>ths back, while preparing a workshop <strong>on</strong> gender stereotypes and biases, I came<br />

across research by the World Ec<strong>on</strong>omic Forum suggesting a significant gender<br />

gap am<strong>on</strong>g AI professi<strong>on</strong>als, with <strong>on</strong>ly 22% of AI professi<strong>on</strong>als globally being female,<br />

compared to 78% being male. Perhaps I was expecting it, but I still found it not just disturbing;<br />

more than that. I thought it’s dangerous and I’ll explain why right away.<br />

By Jerry Zagoritis<br />

Editor and<br />

Publishing Partner<br />

of Our World,<br />

and the CEO of<br />

Campaign Lab<br />

An algorithm that has been coded by humans, may reflect biases of the developers. If the<br />

data collected and used for the development of AI is gender biased, the results will also be<br />

biased, leading as a c<strong>on</strong>sequence to biased decisi<strong>on</strong>s in a number of fields, including for<br />

example hiring decisi<strong>on</strong>s.<br />

And so I’d like to use this editorial as an opportunity to raise the attenti<strong>on</strong> of the business<br />

leaders and policy makers hosted in our pages to this simple fact: to avoid the replicati<strong>on</strong> of<br />

stereotypes and biases, and to enhance AI’s efficacy, we must urgently promote more diversity,<br />

including the participati<strong>on</strong> of more women, in the development of AI.<br />

Back to O/W. In the development of this editi<strong>on</strong> we invited authors who share our visi<strong>on</strong> that<br />

our world needs inspirati<strong>on</strong>, passi<strong>on</strong> and boldness for a better tomorrow.<br />

This is why we invited the Transport Commissi<strong>on</strong>er, Adina Valean, and the Greek Minister<br />

for Digital, Kyriakos Pierrakakis, to foreword this special editi<strong>on</strong>. Mr Pierrakakis has inspired<br />

change and has helped his (our) country take unprecedented digital leaps forward, while Ms.<br />

Valean is no stranger to the readers of this magazine - she has repeatedly c<strong>on</strong>tributed her<br />

always inspiring thoughts to O/W editi<strong>on</strong>s over the years.<br />

The topic of <strong>Artificial</strong> <strong>Intelligence</strong> can be divisive by nature; as are most things novel. With that<br />

in mind we are excited to be hosting representatives of the European Parliament’s Special<br />

Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age (AIDA) from all political groups, except<br />

<strong>on</strong>e* – including the AIDA Committee Chair and the European Parliament Rapporteur. EU<br />

Policy makers who, next to important business leaders, nati<strong>on</strong>al policymakers and thinkers,<br />

c<strong>on</strong>tribute to what we see as an exciting debate <strong>on</strong> the present and future of our world.<br />

Happy Holidays and a Happy New Year!<br />

*We made sure to invite Members of European Parliament from all political groups in order to foster<br />

a fair and balanced debate. Unfortunately, we didn’t receive a resp<strong>on</strong>se from the GUE/NGL (European<br />

United Left) Member of AIDA, although our team called and followed up by email repeatedly.


Foreword<br />

By Kyriakos Pierrakakis<br />

Greek Minister of Digital<br />

Governance<br />

The dream to create an artificial being that could think and act just like a human<br />

was c<strong>on</strong>ceived in the myths of ancient Greece and has travelled for more than<br />

2,000 years to the science-ficti<strong>on</strong> literature of modern times. But each passing<br />

day the dream of <strong>Artificial</strong> <strong>Intelligence</strong> (AI) gets closer to realisati<strong>on</strong> as technology<br />

advances from all over the world suggest.<br />

Even though we still lack flying cars, according to the visi<strong>on</strong>s of 20th century’s futurists,<br />

but we are close to having completely aut<strong>on</strong>omous vehicles that can safely transport<br />

people and goods regardless of the weather c<strong>on</strong>diti<strong>on</strong>s. AI technologies are quickly<br />

integrated into medical procedures, manufacturing, banking, trade, art, and numerous<br />

other everyday activities and it is just a matter of time before seeing it expanding further.<br />

When it comes to AI, Europe is at a pole positi<strong>on</strong> as it has a str<strong>on</strong>g track record in<br />

research and in development. Currently, <strong>on</strong>e out of four industrial robots is made in<br />

Europe, so we have an advantage towards our global competitors. We, as Europeans,<br />

can further expand our lead doing what we know best – cooperate and address together<br />

the challenges that could emerge in the future.<br />

But with no doubt, AI is a great power and great power entails great resp<strong>on</strong>sibilities.<br />

European Commissi<strong>on</strong> President Ursula v<strong>on</strong> der Leyen rightly pointed out in her remarks<br />

<strong>on</strong> Shaping Europe’s Digital Future last February that “<strong>Artificial</strong> <strong>Intelligence</strong> must serve<br />

people and therefore, <strong>Artificial</strong> <strong>Intelligence</strong> must always comply with people’s rights”.<br />

We, as policy-makers, are called to strike the right balance and ensure that<br />

technological evoluti<strong>on</strong> goes hand-in-hand with upholding the rights of people. We<br />

are called to ensure that AI is used to benefit all citizens within the European Uni<strong>on</strong>. We<br />

must also ensure that the disrupti<strong>on</strong> caused by the evoluti<strong>on</strong> of technology, does not<br />

lead to exclusi<strong>on</strong> or enhance inequalities and does not questi<strong>on</strong> well-founded values<br />

such as the protecti<strong>on</strong> of privacy. We want AI and all other technologies to empower<br />

people, provide inspirati<strong>on</strong>, and serve the needs of our societies. AI poses the challenge<br />

of addressing biases and ensuring that the great achievements of technology benefit<br />

every<strong>on</strong>e regardless of residence, gender, and pers<strong>on</strong>al beliefs. Trust must be built for<br />

people to use AI in their daily activities and this is where policy-makers are called to work<br />

together with engineers and all societal stakeholders and ensure that AI is an inclusive<br />

technology of inclusi<strong>on</strong> that will not leave any<strong>on</strong>e behind.


Women in Energy, Climate and Sustainability (WECS) is a<br />

public foundati<strong>on</strong> established to promote gender equality<br />

as an enabler of the transiti<strong>on</strong> towards a climate neutral<br />

ec<strong>on</strong>omy in Europe and worldwide.<br />

Our objective is to facilitate gender diversity and women<br />

empowerment in the fields of energy, climate and<br />

sustainability.<br />

info@wecsfoundati<strong>on</strong>.org<br />

wecsfoundati<strong>on</strong>.org


Foreword<br />

By Adina Vălean<br />

European Commissi<strong>on</strong>er for<br />

Transport<br />

W<br />

i ill <strong>Artificial</strong> <strong>Intelligence</strong> mean<br />

driverless cars criss-crossing<br />

our towns and cities, with<br />

passengers relaxing in the back seat? It<br />

could mean this, <strong>on</strong>e day in the future. But<br />

what most people d<strong>on</strong>’t realise, is that AI,<br />

while still in its infancy, is already tip-toeing<br />

its way into our transport network – just less<br />

visibly than the arrival of aut<strong>on</strong>omous cars<br />

would be. AI has the potential to transform<br />

our travelling experience, enabling a<br />

smoother and more sustainable journey<br />

for drivers, passengers and freight, and –<br />

crucially – making mobility even safer.<br />

AI is already making a difference. It is<br />

part of a new algorithm used to provide<br />

expected time of arrival for rail freight<br />

trains, and has significantly improved<br />

performance over time through machinelearning.<br />

Accurate arrival time predicti<strong>on</strong>s<br />

are important for the seamless integrati<strong>on</strong><br />

of rail freight with road and maritime<br />

intermodal services. The technology was<br />

developed through the EU-supported<br />

ELETA project.<br />

In aviati<strong>on</strong>, applicati<strong>on</strong>s are being<br />

deployed to automate flight plan<br />

correcti<strong>on</strong>s, improve passenger transfers<br />

and predict traffic. In shipping, AI is helping<br />

c<strong>on</strong>tainer terminals and carriers alike to<br />

determine the best sequence for docking<br />

and loading/unloading. It does this by<br />

randomly trying many soluti<strong>on</strong>s and<br />

comparing the merits of each soluti<strong>on</strong>.<br />

It then starts applying its knowledge to<br />

each new scenario it tests so they get<br />

progressively better.<br />

The transport industry has clearly<br />

seen the potential, and is investing heavily.<br />

Driverless trains, cars able to detect animals<br />

<strong>on</strong> the road, and vessels able to advise <strong>on</strong><br />

the most fuel-efficient way to operate al<strong>on</strong>g<br />

a specific shipping route are the focus of<br />

recent trials around Europe. Companies<br />

are investing, testing and manifesting<br />

their interest. For road transport, we are<br />

still far from aut<strong>on</strong>omous cars. But we are<br />

already <strong>on</strong> a path to cooperative c<strong>on</strong>nected<br />

automated mobility (CCAM). Particularly<br />

in talk of cars, the relati<strong>on</strong>ship between<br />

AI and aut<strong>on</strong>omy is often misunderstood.<br />

The former does not necessarily mean the<br />

latter. Instead, AI can be used to provide<br />

different levels of support to a car driver:<br />

from advice <strong>on</strong> the best route to take given<br />

current traffic c<strong>on</strong>diti<strong>on</strong>s, to full aut<strong>on</strong>omy.<br />

While AI may appear to be a silver bullet<br />

that solves all of our transport challenges,<br />

it is nothing without data. From traffic<br />

flows to maintenance requirements, data<br />

is the fuel that AI needs to perform. It is in<br />

analysing big data faster than any human<br />

can that AI technologies can enable a<br />

vehicle to understand the world around<br />

it and make the right decisi<strong>on</strong> at the right<br />

time. It is AI combined with data that can<br />

cut journey times, c<strong>on</strong>gesti<strong>on</strong>, unnecessary<br />

polluti<strong>on</strong>, downtime for maintenance and<br />

ultimately, frustrati<strong>on</strong> due to time lost.<br />

The next piece in the puzzle is therefore<br />

sharing this data. Transport authorities,<br />

infrastructure managers, transport<br />

operators, manufacturers, service<br />

providers, platforms, final users and n<strong>on</strong>transport<br />

stakeholders are already doing<br />

so to improve operati<strong>on</strong>s and services,<br />

but this is a sensitive topic for many in the<br />

industry, so we want to develop a comm<strong>on</strong><br />

European mobility data space.<br />

Not all hurdles to AI are technological.<br />

The European Commissi<strong>on</strong>’s 2018 AI<br />

strategy raises the need to prepare for<br />

socio-ec<strong>on</strong>omic change; and to ensure an<br />

appropriate ethical and legal framework.<br />

A Communicati<strong>on</strong> <strong>on</strong> AI’s trustworthiness<br />

followed, designed to increase public<br />

acceptance while providing ethical<br />

guidelines for organisati<strong>on</strong>s pursuing AI.<br />

C<strong>on</strong>cerns range from safety and jobs to<br />

privacy and liability, and it is important<br />

that we recognise, c<strong>on</strong>sider and investigate<br />

each and every <strong>on</strong>e of these anxieties now.<br />

Technological progress will be worthless if<br />

our citizens are not <strong>on</strong> board.<br />

Our job in the Commissi<strong>on</strong> is to<br />

adapt our regulatory framework so that<br />

it supports innovati<strong>on</strong>, while at the same<br />

time ensuring respect for fundamental<br />

values and rights.<br />

The European Pillar of Social Rights,<br />

which calls for decent working c<strong>on</strong>diti<strong>on</strong>s,<br />

social protecti<strong>on</strong> and equal opportunities<br />

for all, is the Commissi<strong>on</strong>’s first resp<strong>on</strong>se<br />

to the challenges posed by new forms of<br />

work.<br />

We are also promoting skills<br />

development, as skills dictate employability.<br />

The New Skills Agenda for Europe also<br />

targets smoother transiti<strong>on</strong>s and reskilling<br />

for people changing jobs or careers.<br />

To improve understanding of the<br />

current transformati<strong>on</strong> process in the<br />

transport sector, the Commissi<strong>on</strong> is also<br />

funding research projects <strong>on</strong> the effects of<br />

automati<strong>on</strong> <strong>on</strong> the labour force, working<br />

c<strong>on</strong>diti<strong>on</strong>s, and skills requirements. And we<br />

are engaging with stakeholders, including<br />

our social partners. The results of a study<br />

analysing the situati<strong>on</strong> across transport<br />

modes and recommending future steps<br />

are due at the end of this year.<br />

Al<strong>on</strong>gside social c<strong>on</strong>cerns are those<br />

from industry: will the current safety<br />

legislative framework work for potential<br />

new safety risks? Will certificati<strong>on</strong> processes<br />

need to change to take account of machine<br />

learning? Will some traditi<strong>on</strong>al players see<br />

their role change? Will new alliances see<br />

others missing the AI boat?<br />

While I take these c<strong>on</strong>cerns seriously,<br />

I do not see them as blocking factors. It<br />

is clear that all stakeholders will need to<br />

collaborate much more than they have<br />

d<strong>on</strong>e, and to find their place in new value<br />

chains. Together, we will find the answers<br />

to these questi<strong>on</strong>s.<br />

Ultimately, the world is changing.<br />

Today, technology and innovati<strong>on</strong> are<br />

already challenging our habits and dayto-day<br />

lives and I welcome this! But it is<br />

not <strong>on</strong>ly technology that is changing. Our<br />

citizens will no l<strong>on</strong>ger accept the status<br />

quo. They no l<strong>on</strong>ger accept emissi<strong>on</strong>s or<br />

c<strong>on</strong>gesti<strong>on</strong>. They want change. And so do<br />

I. I want a modern, accessible, safe and<br />

c<strong>on</strong>nected transport system that is both<br />

sustainable – through decarb<strong>on</strong>isati<strong>on</strong> –<br />

and smart – through digitalisati<strong>on</strong>. The will<br />

and momentum for change is there, and<br />

AI will be a driver in making that change<br />

happen.


CONTENTS<br />

88<br />

PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Editor’s Letter...............................................................................5<br />

By Jerry Zagoritis<br />

Editor and Publishing Partner of Our World, and the CEO of Campaign Lab<br />

Foreword......................................................................................7<br />

By Kyriakos Pierrakakis<br />

Greek Minister of Digital Governance<br />

Foreword......................................................................................9<br />

By Adina Vălean<br />

European Commissi<strong>on</strong>er for Transport<br />

AI bey<strong>on</strong>d tomorrow: transforming the state to cope with the<br />

challenges of tomorrow............................................................... 11<br />

By Ioan-Dragoş Tudorache<br />

Member of the European Parliament from Romania (Renew Europe), Chair of the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age<br />

Politicizing the 5G debate is not good for Europe........................... 14<br />

By Abraham Liu<br />

Huawei Chief Representative to the EU Instituti<strong>on</strong>s<br />

We need to invest in our own digital sovereignty .......................... 16<br />

By Axel Voss<br />

Member of the European Parliament from Germany (EPP), Member of the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age<br />

Digital Rights in the Age of Super <strong>Intelligence</strong>................................ 20<br />

By Eva Kaili<br />

Member of the European Parliament from Greece (S&D), Chair of the Panel for the Future of<br />

Science and Technology (STOA), Member of the Committee <strong>on</strong> Industry, Research and Energy,<br />

Substitute Member of the Special Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age<br />

<strong>Artificial</strong> <strong>Intelligence</strong>: a geopolitical and ec<strong>on</strong>omic game changer.... 24<br />

By Adam Bielan<br />

Member of the European Parliament from Poland (ECR), Member of the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age<br />

Is “Open Strategic Aut<strong>on</strong>omy” … “artificial” or “intelligent”?.......... 26<br />

By Anna-Michelle Asimakopoulou<br />

Member of the European Parliament from Greece (EPP), Vice-Chair of the Committee<br />

<strong>on</strong> Internati<strong>on</strong>al Trade, Member of the Special Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a<br />

Digital Age<br />

An <strong>Artificial</strong> <strong>Intelligence</strong> For Human Well-Being............................. 28<br />

By Iban Garcia del Blanco<br />

Member of the European Parliament form Spain (S&D), Vice-Chair of the Committee <strong>on</strong><br />

Legal Affairs, Member of the Special Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age<br />

AI in the EU: Balancing Benefit & C<strong>on</strong>trol....................................... 30<br />

By Angeliki Dedopoulou<br />

Senior Manager for EU Public Affairs with Huawei Technologies<br />

Str<strong>on</strong>g rules for digital opini<strong>on</strong>-forming marketplaces.................... 32<br />

By Alexandra Geese<br />

Member of the European Parliament from Germany (Greens-European Free Alliance),<br />

Member of the Special Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age<br />

Teach AI in schools. Win the tech race in 2030............................... 34<br />

By K<strong>on</strong>stantinos Kyranakis<br />

Member of the Hellenic Parliament, former President of the Youth of the European<br />

People’s Party<br />

AI and Machine Learning in Digital Campaigning – will bots bring us<br />

closer than ever or will they ruin our system? ............................... 36<br />

By Hannes Kirchbaumer<br />

Founder and CEO of KIRCHBAUMER.COM, His main focus lies <strong>on</strong> digital marketing<br />

c<strong>on</strong>sulting and political campaigning<br />

<strong>Artificial</strong> intelligence’s great impact <strong>on</strong> low and<br />

middle-skilled jobs...................................................................... 38<br />

By Sybrand Brekelmans & Georgios Petropoulos<br />

Sybrand Brekelmans: Research assistant at Bruegel.<br />

Georgios Petropoulos: Marie Curie Skłodowska Research Fellow at MIT and Bruegel and<br />

post-doctoral fellow at the MIT Initiative <strong>on</strong> the Digital Ec<strong>on</strong>omy<br />

Global cooperati<strong>on</strong> is the <strong>on</strong>ly way forward.................................. 40<br />

By Luis Neves<br />

CΕΟ of the Global Enabling Sustainability Initiative (GeSI)<br />

The dynamics of data accumulati<strong>on</strong>.............................................. 42<br />

By Julia Anders<strong>on</strong><br />

Research Analyst, Bruegel


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

AI bey<strong>on</strong>d tomorrow: transforming the state<br />

to cope with the challenges of tomorrow<br />

By Ioan-Dragoş Tudorache<br />

Ioan-Dragoş<br />

Tudorache<br />

Member of the<br />

European Parliament<br />

from Romania (Renew<br />

Europe), Chair of the<br />

Special Committee <strong>on</strong><br />

<strong>Artificial</strong> <strong>Intelligence</strong> in<br />

a Digital Age<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

With the arrival of Ursula v<strong>on</strong> der Leyen<br />

and the “geopolitical Commissi<strong>on</strong>”<br />

focused <strong>on</strong> the twin strategic<br />

priorities of digital and green, the Brussels<br />

bubble has been c<strong>on</strong>tinuously abuzz with the<br />

trendiest of catchphrases: artificial intelligence,<br />

and its impact <strong>on</strong> humankind.<br />

Any new technology since the steam<br />

engine has shaped society. In the 18th and<br />

19th century, the industrial revoluti<strong>on</strong> ripped<br />

through the established order and transformed<br />

fundamentally how we did things without much<br />

foresight as to c<strong>on</strong>sequences. In 2020, we have<br />

a duty to better guide societal evoluti<strong>on</strong> instead<br />

of building the digital society out of inertia and<br />

path-dependency. We have a m<strong>on</strong>umental<br />

opportunity to get artificial intelligence right from<br />

the start, and to leverage it to build the society of<br />

tomorrow in a more c<strong>on</strong>scientious fashi<strong>on</strong>. For<br />

this, we need to make the right choices now and<br />

to open up avenues for making the right choices<br />

in the future.<br />

What I feel is missing in the debates in<br />

Brussels and elsewhere, is a vanguard visi<strong>on</strong><br />

for artificial intelligence -- a visi<strong>on</strong> that projects<br />

us decades into the future and gives us a sense<br />

of directi<strong>on</strong>. Without dismissing the important<br />

c<strong>on</strong>versati<strong>on</strong>s around AI that are <strong>on</strong> the agenda<br />

today, we need to start thinking of the “why” of<br />

tomorrow to complement the “what” and the<br />

“how” of today. We need to start preparing<br />

for successfully dealing with the systemic<br />

transformati<strong>on</strong>s AI will bring to our societies, and<br />

nowhere is this more pressing than in the way<br />

the State and its instituti<strong>on</strong>s functi<strong>on</strong>. That, to<br />

my mind, is a global c<strong>on</strong>versati<strong>on</strong> we should be<br />

having, and the EU can lead the way in planning<br />

for the transformati<strong>on</strong> of the State in line with<br />

the AI revoluti<strong>on</strong>, and through this, become a<br />

truly geopolitical superpower as it aspires to be.<br />

My premise is simple: the modern state,<br />

as shaped after the Peace of Westphalia,<br />

risks becoming the most helpless and likely<br />

future victim of artificial intelligence. With a<br />

slow, ossified, often inefficient and ineffective<br />

bureaucracy and administrati<strong>on</strong>, the state has<br />

but a single advantage in the face of all other<br />

structures that organize human activity: its size<br />

and its m<strong>on</strong>opolies <strong>on</strong> providing security and --<br />

to varying extents -- social services, as well as<br />

<strong>on</strong> writing and enforcing rules for how society<br />

and ec<strong>on</strong>omy work. But its m<strong>on</strong>opoly <strong>on</strong> power,<br />

which allowed it to withstand massive shocks<br />

throughout history (from wars to large-scale rise<br />

of disruptive technologies) can make things turn<br />

terribly wr<strong>on</strong>g when it comes to AI, and not <strong>on</strong>ly<br />

in the EU but anywhere else.<br />

<strong>Artificial</strong> intelligence, al<strong>on</strong>gside the great<br />

opportunities it brings for humans, comes<br />

loaded with the means for the demise or the<br />

perversi<strong>on</strong> of the state. Suprastatal structures,<br />

such as the EU, are just <strong>on</strong>e step removed from<br />

the direct threat states face, but the danger they<br />

face is of the same nature.<br />

A challenge from market forces<br />

The first threat to the state’s existence comes<br />

from market forces -- a challenge to its ec<strong>on</strong>omic<br />

viability. As data roams (almost) freely in the<br />

hands of private companies, and as AI algorithms<br />

are being developed around the world and<br />

are improving efficiency in every sector of the<br />

ec<strong>on</strong>omy imaginable, challenges to the state’s<br />

already inefficient delivery of core services are<br />

increasing. When AI-powered private health<br />

becomes cheaper and more effective than state<br />

provided healthcare, how will the state justify its<br />

expenditure <strong>on</strong> health? When private AI-powered<br />

educati<strong>on</strong> -- pers<strong>on</strong>alized, cutting edge, datadriven,<br />

digital-age-ready -- becomes the norm,<br />

how will the state compete? When, ultimately,<br />

private AI-assisted security makes citizens feel<br />

safe and protected, how will the state justify its<br />

existence? When all services the state provides<br />

will be better provided by an AI-powered private<br />

sector, what will give the state the authority to<br />

make and enforce laws and rules? And when<br />

private companies begin reinventing rules<br />

and providing alternative systems of behavior<br />

“governance” that become more important to<br />

citizens than the rules of the state, how will the<br />

state maintain its m<strong>on</strong>opoly <strong>on</strong> enforcement,<br />

11


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

arbitrati<strong>on</strong>, and the dispensati<strong>on</strong> of justice?<br />

Before the rise of artificial intelligence and the data ec<strong>on</strong>omy,<br />

citizens entrusted the state with exclusive competences because<br />

the state was the <strong>on</strong>ly <strong>on</strong>e large enough to provide certain<br />

services. The state was the <strong>on</strong>ly instituti<strong>on</strong> large enough to collect<br />

taxes, it was the <strong>on</strong>ly instituti<strong>on</strong> large enough to administrate<br />

natural m<strong>on</strong>opolies, and it was the <strong>on</strong>ly instituti<strong>on</strong> large enough to<br />

maintain a standing army to counter other states’ standing armies.<br />

Enter data, the new fuel -- or even future currency -- of the<br />

digital ec<strong>on</strong>omy. And <strong>on</strong> this data, specifically because of the<br />

state’s inherent vulnerability to perversi<strong>on</strong> from collecting data<br />

and building AI, the private sector has a cvasi-m<strong>on</strong>opoly. The<br />

tables are turned: private companies are now increasingly more<br />

effective at providing what the state was historically entrusted<br />

to provide. And while there is yet no company that can match<br />

a modern state (even if because the state still holds a citizensentrusted<br />

m<strong>on</strong>opoly <strong>on</strong> making and enforcing rules), the trend<br />

is here, at our doorstep. As more and more of human activity<br />

becomes data-driven, data-fueled, and data-dependent, how can<br />

the state adapt, so that it can compete and survive?<br />

The threat of state perversi<strong>on</strong><br />

The sec<strong>on</strong>d threat AI brings to the very existence of the state<br />

comes from the opposite directi<strong>on</strong>: it offers the right set of<br />

tools for the state to acquire incredible power over its citizens.<br />

The more the state collects, stores, and processes increasingly<br />

sophisticated and detailed data <strong>on</strong> their citizens with the help of<br />

increasingly sophisticated AI, the more the instituti<strong>on</strong>al setup that<br />

ensures its democratic -- or, arguably, any type of -- functi<strong>on</strong>ing<br />

becomes pr<strong>on</strong>e to unraveling. Massive advances in <strong>on</strong>e functi<strong>on</strong>al<br />

area -- such as, for example, the ability to predict every single<br />

citizens’ potential criminal behavior or, oppositely, to identify and<br />

reward every citizen’s law-abiding behavior -- shift the instituti<strong>on</strong>al<br />

balance of power and alter the power competiti<strong>on</strong> between<br />

instituti<strong>on</strong>s. Resource allocati<strong>on</strong> between instituti<strong>on</strong>s gradually<br />

shifts to instituti<strong>on</strong>s that are more effective in providing for the<br />

“wellbeing” of the citizens and, in time, the state transforms into<br />

a giant populati<strong>on</strong> c<strong>on</strong>trol machine, c<strong>on</strong>tinuously and more and<br />

more intrusively optimizing the lives of its citizens. This is but <strong>on</strong>e<br />

scenario, which does not even need a totalitarian state to come<br />

to pass. Nor does the state -- or its leaders -- need to c<strong>on</strong>sciously<br />

choose to “c<strong>on</strong>trol” citizens. Once the state becomes capable<br />

to profile every single <strong>on</strong>e of its “customers” -- behaviorally,<br />

psychologically, politically, and in a myriad other ways -- there is no<br />

turning back. The technology allows it, for the first time in human<br />

history. And, incidentally, the state is since times immemorial<br />

the default repository of the pers<strong>on</strong>al data of its citizens. So the<br />

temptati<strong>on</strong> is there.<br />

By 2030, the EU must define a new rulebook, fit for the digital<br />

age, by which the state needs to play in dealing with citizens’<br />

data and in deploying AI. Brussels is rightfully worried by facial<br />

recogniti<strong>on</strong> technology, predictive policing, social scoring, and<br />

other blatantly dangerous technologies that could be misused<br />

by public authorities, especially when these technologies combine<br />

with potential biases and discriminati<strong>on</strong>. But the road to Big<br />

Brother needs not be a straight line. We need to think carefully<br />

and to anticipate any possible negative outcomes from using<br />

citizens’ pers<strong>on</strong>al data and placing powerful AI in the hands of<br />

state authorities, even in the most benign use cases. For this,<br />

the state itself needs to be transformed, so that it is resilient to<br />

perversi<strong>on</strong> even if endowed with dangerous technological tools.<br />

We need to reinvent the checks-and-balances and rewrite the<br />

social c<strong>on</strong>tract for the digital age so that the state survives and<br />

c<strong>on</strong>tinues to serve its purpose.<br />

Fake news and disinformati<strong>on</strong><br />

The third challenge to the state brought about by artificial<br />

intelligence comes from without -- the direct attack <strong>on</strong> truth brought<br />

about by AI-powered disinformati<strong>on</strong> and fake-news. Once truth<br />

unravels social order unravels as well, and the state is threatened.<br />

While propaganda, disinformati<strong>on</strong>, mass manipulati<strong>on</strong>, and fake<br />

news are all as ancient as human civilizati<strong>on</strong>, AI acts as a catalyst<br />

that amplifies these threats bey<strong>on</strong>d the c<strong>on</strong>tainment threshold.<br />

This is an existential challenge, first and foremost, to democratic<br />

systems, because democracy is fueled by truth: citizens need to<br />

know the truth in order to vote, and the vote is the fundamental<br />

building block of democratic systems. The democratic state is<br />

bound to unravel <strong>on</strong>ce third parties (whether states or n<strong>on</strong>-state<br />

actors, internati<strong>on</strong>al or domestic) can sway the results of electi<strong>on</strong>s<br />

through powerful AI-enabled tools. We are not yet there, but the<br />

progressi<strong>on</strong> is also not linear: <strong>on</strong>ce such mass manipulati<strong>on</strong> tools<br />

become powerful enough that they are bey<strong>on</strong>d c<strong>on</strong>tainment, the<br />

failure of the democratic state will be abrupt, not incremental.<br />

Social order is relevant for the stability of all societies, not just<br />

democracies. AI-powered fake news and disinformati<strong>on</strong> can also<br />

bring to their knees n<strong>on</strong>-democratic states, including those very<br />

states who are now building and using such tools to advance<br />

their internati<strong>on</strong>al agenda. And, in the future, authoritarian states<br />

might be even more vulnerable to this threat than democracies. As<br />

democratic societies develop antibodies to deal with such direct<br />

attacks <strong>on</strong> their democratic functi<strong>on</strong>ing, authoritarian states are<br />

more likely to deploy mass-manipulati<strong>on</strong> tools internally in order<br />

to c<strong>on</strong>trol their citizens and to project a preferred versi<strong>on</strong> of reality.<br />

But when the proliferati<strong>on</strong> of powerful disinformati<strong>on</strong> AI will make<br />

it accessible to smaller actors, including domestic challengers,<br />

maintaining a fabricated versi<strong>on</strong> of the truth and c<strong>on</strong>tinuously<br />

fine-tuning it will become increasingly difficult.<br />

The stability of the state, democratic or not, depends <strong>on</strong><br />

truth or, at the very least, <strong>on</strong> the stability of the local “truth”. The<br />

progress of society, including the digital transformati<strong>on</strong>, must be<br />

fueled by truth, because scientific progress can <strong>on</strong>ly happen when<br />

facts remain unchanged. And the rules-based internati<strong>on</strong>al order<br />

is fueled by truth, because rules and decisi<strong>on</strong>s in internati<strong>on</strong>al fora<br />

rely <strong>on</strong> facts and the truth. AI-powered tools that can manipulate<br />

populati<strong>on</strong>s <strong>on</strong> a large scale and change the truth to influence<br />

mass-scale outcomes are a threat to all states and a threat to the<br />

future global stability.<br />

12 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Transforming the state to<br />

withstand the challenges of AI<br />

The answer to all three challenges -- the<br />

increasing competiti<strong>on</strong> from private<br />

companies in providing fundamental<br />

services, the state’s vulnerability to<br />

perversi<strong>on</strong> from within if misusing<br />

technology, and the challenge to social<br />

order posed by AI-powered mass<br />

manipulati<strong>on</strong> tools -- is in the reinventi<strong>on</strong><br />

of the state as the safest and most trusted<br />

digital platform for its citizens. But how?<br />

First, the state needs to be the first<br />

to provide citizens a secure, trusted,<br />

and inalienable mechanism to own and<br />

use their pers<strong>on</strong>al data, including in<br />

the interacti<strong>on</strong> with the state itself. The<br />

Commissi<strong>on</strong>’s “secure European e-identity”,<br />

foreshadowed by Ursula v<strong>on</strong> der Leyen in<br />

her State of the Uni<strong>on</strong> address, is a step<br />

in the right directi<strong>on</strong>, but it needs a boost<br />

in magnitude and ambiti<strong>on</strong>. Looking at<br />

2030, the EU must provide its states and<br />

therefore its citizens with a soluti<strong>on</strong> to not<br />

just the ownership and the use of their<br />

pers<strong>on</strong>al data, but to its “m<strong>on</strong>etizati<strong>on</strong>”.<br />

If people are given a mechanism through<br />

which they can stand to gain quantifiable<br />

state-backed benefits from their data,<br />

perhaps to the same extent to which the<br />

state guarantees currency as a carrier of<br />

ec<strong>on</strong>omic value, market forces will prop-up<br />

the state in the uneven competiti<strong>on</strong> with<br />

the private sector. The Googles and the<br />

Amaz<strong>on</strong>s of the world will have to adapt<br />

to increasing demands for value from the<br />

data they use, and the state will have a<br />

newfound role in protecting its citizens’<br />

rights.<br />

Sec<strong>on</strong>d, the state needs to transform<br />

itself so as to become a de facto (and<br />

powerful) standard-setter in the way<br />

pers<strong>on</strong>al data is used. The state needs<br />

to become itself a data-agnostic digital<br />

platform, in which citizens plug their data<br />

to access services or to derive ec<strong>on</strong>omic<br />

benefits. The state needs to become<br />

the selfless and trusted repository of<br />

its citizens data, just like a bank or a<br />

safehouse. Rules must be rewritten and<br />

the functi<strong>on</strong>ing of the states’ instituti<strong>on</strong>s<br />

must be rebalanced so as to guarantee<br />

citizens the inviolability of their data. And,<br />

just like the current state pays workers for<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

their time and skill through direct hires and<br />

public tenders, so should it set the t<strong>on</strong>e for<br />

the digital future by offering citizens direct<br />

ec<strong>on</strong>omic value in those instances when<br />

it does need to use, temporarily and for<br />

limited and clearly-defined purposes, their<br />

pers<strong>on</strong>al data.<br />

Third, the state needs to open itself<br />

up for everybody to benefit -- citizens<br />

and industry alike -- thus setting both<br />

transparency and informati<strong>on</strong> standards.<br />

By opening the increasingly massive<br />

amounts of industrial data it generates,<br />

the state can be a standard-setter and<br />

a catalyst for the data-driven industrial<br />

transformati<strong>on</strong>, fueling innovati<strong>on</strong> and<br />

progress. Allowing industry to benefit<br />

from public data and from co-creating<br />

data with public authorities, encouraging<br />

and facilitating the sharing and comm<strong>on</strong><br />

use of industrial data, and relying <strong>on</strong> the<br />

natural m<strong>on</strong>opoly <strong>on</strong> certain types of data<br />

to set standards, the state can fuel growth<br />

and also become a trusted platform for its<br />

ec<strong>on</strong>omic actors, not just for its citizens.<br />

And by opening up its data and acting as<br />

a neutral actor in an ecosystem fueled by<br />

SHUTTERSTOCK<br />

data and informati<strong>on</strong>, the state can also<br />

guarantee a c<strong>on</strong>sistent and empiricsdriven<br />

versi<strong>on</strong> of “the truth” that is harder<br />

to undermine, boosting its own immunity<br />

to disinformati<strong>on</strong> and manipulati<strong>on</strong><br />

attacks from without.<br />

Given the ec<strong>on</strong>omies of scale and<br />

interoperability requirements for such<br />

transformative changes to the very<br />

foundati<strong>on</strong>s of the state, the European<br />

Uni<strong>on</strong> has a crucial role to play here. The<br />

traditi<strong>on</strong>al “state” will become increasingly<br />

insignificant in a digital ec<strong>on</strong>omy where<br />

data flows at incredible speeds all across<br />

the globe. No <strong>on</strong>e state can manage such<br />

transformati<strong>on</strong> <strong>on</strong> its own, and no <strong>on</strong>e<br />

state would benefit from it, should it go at<br />

it al<strong>on</strong>e. While according to the principle of<br />

subsidiarity member states will ultimately<br />

be resp<strong>on</strong>sible for many of the genetic<br />

changes the digital age requires of them<br />

to ensure their survival, the Uni<strong>on</strong> is in the<br />

perfect positi<strong>on</strong> to provide the ultimate<br />

transformati<strong>on</strong> handbook. By 2030, we<br />

need to have the handbook ready -- and<br />

with it, a new set of rules for the role of the<br />

Uni<strong>on</strong> in the digital transformati<strong>on</strong>.<br />

13


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

ISTOCK<br />

Politicizing the 5G debate<br />

is not good for Europe<br />

By Abraham Liu<br />

It is often said “may you live in<br />

interesting times”.<br />

These last few m<strong>on</strong>ths and<br />

particularly these last few weeks and<br />

days have certainly been interesting<br />

times.<br />

It is now clear that, after shall we say,<br />

a slightly unusual American electi<strong>on</strong>,<br />

there will be a new US Administrati<strong>on</strong> in<br />

January.<br />

It’s still too early to tell what the<br />

policies of President Elect Biden and<br />

Vice President Elect Harris will be, but<br />

by the team they are assembling around<br />

them, it looks like we may be returning<br />

to a world of multilateral cooperati<strong>on</strong><br />

and engagement, which from a business<br />

leader’s point of view, is encouraging.<br />

We have <strong>on</strong>ly to look at this year’s<br />

experiences to see the fruits of such<br />

multilateralism. With the last decade<br />

of global collaborati<strong>on</strong> in the ICT<br />

sector, the quality of the networks has<br />

enabled important aspects of our lives<br />

to c<strong>on</strong>tinue; like teleworking, remote<br />

medicine, home educati<strong>on</strong> and business<br />

c<strong>on</strong>tinuity. Specifically, the ability to<br />

make high-quality video c<strong>on</strong>ference<br />

calls is a direct result of global efforts<br />

and cooperati<strong>on</strong> to develop a single 4G<br />

14 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

It looks like we may be returning to a world<br />

of multilateral cooperati<strong>on</strong> and engagement,<br />

which from a business leader’s point of view,<br />

is encouraging.<br />

Abraham Liu<br />

Huawei Chief<br />

Representative to the<br />

EU Instituti<strong>on</strong>s<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

network standard – before the outgoing US<br />

administrati<strong>on</strong> came to power.<br />

During the last administrati<strong>on</strong>’s term<br />

though, we have seen attempts by the US<br />

to threaten others through its technological<br />

dominance. This has had the effect of<br />

encouraging Europeans to talk about their<br />

digital sovereignty, and the resilience of<br />

their networks. Did you know for example<br />

that the overwhelming amount of your data<br />

storage, cloud services, semic<strong>on</strong>ductors<br />

and technological infrastructure is from<br />

the United States? Of the top ten cloud<br />

providers in the EU, <strong>on</strong>ly 3 can truly be<br />

classed European in origin. Huawei <strong>on</strong> the<br />

other hand, does not deal in your data, or<br />

have access to it, nor do we m<strong>on</strong>etize it. We<br />

are not even compelled to collect data if<br />

ordered to - I am assured that the relevant<br />

Chinese law does not have extraterritorial<br />

applicati<strong>on</strong> – unlike, ir<strong>on</strong>ically, the US<br />

“Cloud Act”. We can actually help Europe<br />

with its digital sovereignty and strategic<br />

aut<strong>on</strong>omy ambiti<strong>on</strong>s.<br />

But I believe this talk of where a tech<br />

company comes from, promoted by<br />

the current US administrati<strong>on</strong>, is at best<br />

missing the point, and at worst a form<br />

of “corporate racism”. This doesn’t do<br />

any<strong>on</strong>e any good – least of all European<br />

c<strong>on</strong>sumers. Huawei was born in China, but<br />

its technology is not fully Chinese – just like<br />

any European or US tech company the<br />

technology is multinati<strong>on</strong>al.<br />

Apple products have European and<br />

Chinese comp<strong>on</strong>ents. Nokia products<br />

have Chinese and US parts. Huawei kit<br />

has European and US elements. The<br />

noti<strong>on</strong> that you have to choose between<br />

Chinese and US or European is false – you<br />

are already choosing Chinese in everything<br />

you buy. Indeed, while trying to exclude<br />

Huawei from 5G networks <strong>on</strong> the basis that<br />

we are Chinese, both the US and Europe<br />

are increasing their trade with China<br />

and Chinese companies, and European<br />

companies are expanding their markets<br />

inside China as well.<br />

It is as a direct result of this c<strong>on</strong>nected<br />

and interdependent technology supply<br />

chain that many European and American<br />

companies are also being damaged by the<br />

policies of the current US administrati<strong>on</strong>.<br />

I am hopeful that this message will<br />

res<strong>on</strong>ate with new lawmakers in the US,<br />

and their counterparts here in Europe,<br />

because there are so many benefits that<br />

the new technological developments in<br />

AI, quantum and cloud computing can<br />

bring - not least to Europe’s envir<strong>on</strong>mental<br />

protecti<strong>on</strong> goals as spelled out in its Green<br />

Deal, and its recovery plans. A 5G network<br />

without Huawei is a more expensive, less<br />

technologically advanced network.<br />

It’s probably too optimistic to c<strong>on</strong>clude<br />

that a new US administrati<strong>on</strong> will overturn<br />

or change the most restrictive policies<br />

towards Huawei in the short term – or<br />

even in the medium term. But while we<br />

are planning for the worst, we are hoping<br />

for the best.<br />

For me, it would be enough that in<br />

the coming weeks and m<strong>on</strong>ths, we here<br />

in Europe, and in Huawei, live through a<br />

period of greater communicati<strong>on</strong>, more<br />

collaborati<strong>on</strong>, and increased cooperati<strong>on</strong><br />

across countries and c<strong>on</strong>tinents. That we<br />

live in slightly less interesting times!<br />

15


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

We need to invest in our<br />

own digital sovereignty<br />

Axel Voss<br />

Member of the<br />

European Parliament<br />

from Germany (EPP),<br />

Member of the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong><br />

<strong>Intelligence</strong> in a Digital<br />

Age<br />

By Axel Voss<br />

digital transformati<strong>on</strong><br />

c<strong>on</strong>tinues to have a str<strong>on</strong>g<br />

“The<br />

impact <strong>on</strong> our daily life and<br />

has led to radical changes in almost<br />

every part of Europe’s ec<strong>on</strong>omy and<br />

society. Although the EU Digital Single<br />

Market strategy of 2014 was a first<br />

important step to make the European<br />

Uni<strong>on</strong> future-proof for the digital era,<br />

I believe that many relevant policy<br />

questi<strong>on</strong>s remain unanswered.”<br />

This is the beginning of my own<br />

digital manifesto published in January,<br />

calling <strong>on</strong> the European Commissi<strong>on</strong><br />

to quickly draw up its plans to further<br />

develop the Digital Single Market.<br />

Almost a year later, my statement still<br />

stands. The strategies that were built<br />

up were very important first steps - but<br />

if we do not follow up <strong>on</strong> it by heavily<br />

investing in our own digital sovereignty,<br />

we will end up as a digital col<strong>on</strong>y of the<br />

US or China, uncompetitive and without<br />

a voice of our own.<br />

Currently, n<strong>on</strong>e of the top 15 digital<br />

companies is European. There is no<br />

significant European operating system,<br />

browser, social media network or search<br />

engine. The investment gap compared<br />

to the USA and China is estimated at<br />

€190 billi<strong>on</strong> per year. Our resp<strong>on</strong>se to<br />

this challenge has been a wide range<br />

of incoherent, fragmented interim<br />

soluti<strong>on</strong>s following lengthy decisi<strong>on</strong>making<br />

processes. It seems that we<br />

need to jump <strong>on</strong> the moving train, yet<br />

we are still standing at the platform<br />

discussing which seat to take. Not <strong>on</strong>ly<br />

will this approach prevent us from ever<br />

catching up with a rapidly changing<br />

technological envir<strong>on</strong>ment, it may also<br />

give our citizens the impressi<strong>on</strong> that the<br />

European political class has lost c<strong>on</strong>trol<br />

– a percepti<strong>on</strong> that could ultimately<br />

result in a significant loss of trust in our<br />

democratic system.<br />

Hence, we need to go bey<strong>on</strong>d first<br />

step measures. We need to invest<br />

heavily in our digital infrastructure and<br />

technology “made in the EU”. Although<br />

the Commissi<strong>on</strong> is already promising<br />

16 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

investments, what we need is a mobilisati<strong>on</strong> of private and<br />

public investments at the scale of the European Green Deal.<br />

In fact, a transformati<strong>on</strong> of our digital infrastructure will also<br />

strengthen our sustainability and thus both major initiatives<br />

should go hand in hand.<br />

We also need to invest in digital competence and<br />

educati<strong>on</strong>. Right now, a graduate in data science who wants<br />

We need to invest heavily in<br />

our digital infrastructure and<br />

technology “made in the EU”.<br />

Although the Commissi<strong>on</strong> is<br />

already promising investments,<br />

what we need is a mobilisati<strong>on</strong><br />

of private and public<br />

investments at the scale of<br />

the European Green Deal. In<br />

fact, a transformati<strong>on</strong> of our<br />

digital infrastructure will also<br />

strengthen our sustainability<br />

and thus both major initiatives<br />

should go hand in hand.<br />

SHUTTERSTOCK<br />

to develop new technologies will move to the Silic<strong>on</strong> Valley.<br />

The EU has to become an attractive locati<strong>on</strong> for innovati<strong>on</strong><br />

if it wants to remain a large competitive ec<strong>on</strong>omy. And<br />

thirdly, we need to invest in start-ups and digital companies<br />

to scale up. Only 12 big new European companies were able<br />

to scale up since 1951, compared to 51 in the US. Thus, we<br />

need to provide easy access to venture capital and ease the<br />

administrative burden <strong>on</strong> SMEs and start-ups.<br />

To achieve this, I would like to see clear prioritisati<strong>on</strong>. We<br />

need to have a clear picture about our areas of strength that<br />

we should reinforce, our critical deficiencies that we should<br />

overcome and the upcoming disruptive technologies in which<br />

str<strong>on</strong>g investments make sense. That way, we can prioritise<br />

in which technologies we want to be leading competitors,<br />

whether its cloud computing, automated cars or digital<br />

finance, and start heavily investing in these sectors as flagship<br />

areas. Our objective should be to become less dependent <strong>on</strong><br />

n<strong>on</strong>-European technologies and services, while establishing<br />

sound ethical, technological and security standards.<br />

To put such measures in place, we need to change the way<br />

political processes and governmental systems work by making<br />

legislative procedures more effective. To achieve a truly<br />

harm<strong>on</strong>ised Digital Single Market, we need EU regulati<strong>on</strong>s<br />

instead of directives with c<strong>on</strong>stant impact assessment. It took<br />

us ten years from the first c<strong>on</strong>sultati<strong>on</strong>s for GDPR to its actual<br />

implementati<strong>on</strong>. We cannot afford these delays in a race with<br />

competitors like China.<br />

While I commend the proposals made by the European<br />

Commissi<strong>on</strong>, the clock is ticking. The scenario of becoming a<br />

digital col<strong>on</strong>y will put our competitiveness at risk for the l<strong>on</strong>g<br />

term. If we do not have a say in shaping the next technological<br />

stage, actors who do not share our core values and standards<br />

will dominate the process, with troubling c<strong>on</strong>sequences for<br />

our privacy, security and our prosperity. Our goal should be<br />

to strive for a European way of digitalisati<strong>on</strong> in a Digital Single<br />

Market 2.0: human-centred, value-oriented and based <strong>on</strong> the<br />

social market ec<strong>on</strong>omy, without becoming protecti<strong>on</strong>ist.<br />

New digital innovati<strong>on</strong> is not possible without internati<strong>on</strong>al<br />

cooperati<strong>on</strong> and free flow of data. However, cooperati<strong>on</strong><br />

needs to be built <strong>on</strong> trust and respect of our values.<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

17


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PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Digital Rights in the Age<br />

of Super <strong>Intelligence</strong><br />

By Eva Kaili<br />

Eva Kaili<br />

Member of the<br />

European Parliament<br />

from Greece (S&D),<br />

Chair of the Panel for<br />

the Future of Science<br />

and Technology<br />

(STOA), Member of the<br />

Committee <strong>on</strong> Industry,<br />

Research and Energy,<br />

Substitute Member of<br />

the Special Committee<br />

<strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong><br />

in a Digital Age<br />

In our transforming world, digital technology<br />

has the critical mass to push our fr<strong>on</strong>tiers and<br />

release unlimited potential. As the wave of digital<br />

transformati<strong>on</strong> soars high, improving our lives,<br />

industries and ec<strong>on</strong>omies, we must not overlook<br />

the risks that technologies and innovati<strong>on</strong>s pose<br />

<strong>on</strong> the fairness and cohesi<strong>on</strong> of our societies, and<br />

our rights as European citizens.<br />

Through the c<strong>on</strong>structi<strong>on</strong> of vast digital<br />

infrastructures, which track, m<strong>on</strong>itor and collect<br />

pers<strong>on</strong>al data at scale, major <strong>on</strong>line platforms<br />

are commodifying our data. An entire ecosystem<br />

of apps and companies c<strong>on</strong>trols huge data flows<br />

and ‘treats’ technology users as data suppliers via<br />

the impositi<strong>on</strong> of default choice architectures.<br />

The current form of ‘computati<strong>on</strong>al governance’<br />

in which we are ruled by algorithms and predictive<br />

analytics which make use and trade of individual<br />

human experiences to produce predicti<strong>on</strong>s<br />

of human behaviour has largely remained<br />

unregulated. We can still be in c<strong>on</strong>trol of safe AI,<br />

trustworthy and complimentary to humans.<br />

AI is at the core of this wave of digitisati<strong>on</strong>;<br />

the power it carries must be tamed before it is<br />

unleashed in its next form of super intelligence.<br />

Manifested in both software and hardware<br />

with intelligence expressed in lines of code and<br />

powerful automati<strong>on</strong>, it is already being used to<br />

solve complex problems, discover patterns or<br />

predict traffic, and make suggesti<strong>on</strong>s to users. AI<br />

is also tested for completely aut<strong>on</strong>omous vehicles,<br />

as deep machine learning could make decisi<strong>on</strong>s<br />

faster, safer and better than people. Progress<br />

remains incremental, however the more we<br />

advance our understanding and the further we<br />

develop this technology, the closer we reach the<br />

point where AI leaps from narrow to general,<br />

and then super intelligence. Narrow AI is already<br />

making simple suggesti<strong>on</strong>s and decisi<strong>on</strong>s at the<br />

service of people; however, the next level of AI<br />

sophisticati<strong>on</strong> can completely omit humans from<br />

the process and reach levels that humans will not<br />

be capable to understand or c<strong>on</strong>trol anymore.<br />

As most of human activity and industry has<br />

moved <strong>on</strong>line during the pandemic, and we<br />

become more dependent <strong>on</strong> an increasing amount<br />

of digital services, a series of critical questi<strong>on</strong>s<br />

arise: How can we build data infrastructures that<br />

recognise the role of data as a public good? Can<br />

we foresee an impartial system of data governance<br />

that could rec<strong>on</strong>cile the ast<strong>on</strong>ishing potential of<br />

these technologies with their significant human<br />

downsides? Do we as citizens know that when we<br />

use a search engine to find something <strong>on</strong>line, the<br />

engine is learning by searching us as well? Does the<br />

collecti<strong>on</strong> and processing of behavioural data by<br />

these technology platforms threaten to dismantle<br />

democracy and undermine the rule of law?<br />

To tackle these questi<strong>on</strong>s we need to come up<br />

with novel, innovative resp<strong>on</strong>ses, so that we make<br />

our future better than the grim outlook predicted in<br />

Black Mirror, the popular Netflix series. We have to<br />

be aware and cautious in designing the appropriate<br />

framework for AI; intelligent systems are used <strong>on</strong><br />

the pandemic fr<strong>on</strong>t for rapid COVID diagnosis<br />

and prognosis based <strong>on</strong> AI-enabled CT scanning<br />

analysis. AI systems are used now to upgrade our<br />

mapping systems, the management of resources,<br />

to make our mobility smarter, our agriculture more<br />

precise, with predictive maintenance and smart<br />

sensors that can c<strong>on</strong>tribute to a greener future,<br />

saving time, energy, and resources.<br />

As the impact of exp<strong>on</strong>ential technologies<br />

grows, a new framework is needed in Europe to<br />

harness its benefits and mitigate its risks. This<br />

framework must be built <strong>on</strong> ethical principles and<br />

binding standards, which elevate people’s trust in<br />

AI and ensure that in the digital age, people co-exist<br />

with intelligent systems without fearing exclusi<strong>on</strong>,<br />

manipulati<strong>on</strong>, oppressi<strong>on</strong> or discriminati<strong>on</strong>.<br />

20 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

SHUTTERSTOCK<br />

Retaining freedom of choice in a humancentric<br />

AI that would prevent brain<br />

computer interfaces challenging the nature<br />

and future of humanity. In c<strong>on</strong>trast to the<br />

trends of the Fourth Industrial Revoluti<strong>on</strong><br />

towards inequalities and dehumanizati<strong>on</strong>,<br />

technology and innovati<strong>on</strong> best practices<br />

need now to be bent back towards the<br />

service of humanity, and Europe could<br />

lead as a global rules and standards setter<br />

for the Fifth Industrial Revoluti<strong>on</strong>.<br />

The European principle-based<br />

framework for AI systems must translate<br />

and establish by law, respect to our rights<br />

in the digital age. Progress has been made<br />

with landmark initiatives such as the GDPR,<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

however more work is needed in this space<br />

to establish legally binding rules which<br />

provide developers and innovators with<br />

more legal clarity, and award individuals<br />

str<strong>on</strong>ger protecti<strong>on</strong>s of their rights and<br />

freedoms. At the foundati<strong>on</strong>al level,<br />

this framework must guarantee higher<br />

transparency and accountability, define<br />

the liability of AI systems, establishing<br />

standards to trace, audit, explain, appeal<br />

and reverse decisi<strong>on</strong>s made by AI during<br />

its entire lifecycle.<br />

The rapid development of automati<strong>on</strong><br />

in Europe must not reflect mistakes of<br />

the past; AI algorithms and systems must<br />

be trained <strong>on</strong> diversified sets, and their<br />

objectives have to be clearly defined<br />

and c<strong>on</strong>trolled to avoid risks of bias and<br />

discriminati<strong>on</strong> or data pois<strong>on</strong>ing. Decisi<strong>on</strong>s<br />

made by AI must be aligned with the<br />

collective ethical fabric that defines Europe<br />

throughout the lifecycle of intelligent<br />

systems and follow clear red lines, such<br />

as the risk-based approach that would,<br />

for example, completely ban research in<br />

aut<strong>on</strong>omous lethal weap<strong>on</strong>s or c<strong>on</strong>scious<br />

AI. The high-risk applicati<strong>on</strong>s should alert<br />

us of the fragility of our comm<strong>on</strong> values,<br />

as well as our rights as citizens, our<br />

resp<strong>on</strong>sibilities as policy-makers and our<br />

obligati<strong>on</strong>s to future generati<strong>on</strong>s.<br />

21


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Str<strong>on</strong>g protecti<strong>on</strong>s can enable the development of<br />

ethical AI in Europe, and force gatekeepers to respect with<br />

reciprocity the new architecture of data governance. The<br />

data ecosystem is ground-zero for AI innovati<strong>on</strong> in Europe.<br />

Data is the source of learning for AI systems and therefore<br />

very important for AI to become smarter. Privacy by design,<br />

c<strong>on</strong>sumer protecti<strong>on</strong>, and product safety will be at the top of<br />

our agenda since we will not compromise privacy for safety.<br />

More opti<strong>on</strong>s available to users, clear c<strong>on</strong>sent, and rewards<br />

for the use of our data, with str<strong>on</strong>ger security standards, as in<br />

cases of extreme pers<strong>on</strong>alizati<strong>on</strong> and micro targeting, would<br />

enable fairer AI in this evolving ecosystem, and inspire trust<br />

for European citizens. The EU has expertise in leading efforts<br />

to establish global norms and standards for data processing,<br />

which it can leverage in collaborati<strong>on</strong> with internati<strong>on</strong>al<br />

partners to achieve global c<strong>on</strong>sensus. In the European<br />

Parliament, we are currently working <strong>on</strong> an ambitious<br />

agenda to enable better, rules-based data collecti<strong>on</strong> and<br />

safer mechanisms to process, store, exchange, and transfer<br />

data. Standardisati<strong>on</strong> is necessary to ensure the high quality<br />

and safety of data, al<strong>on</strong>gside the establishment of data<br />

spaces governed by rules addressing the divergent levels of<br />

inherent risk of different sectors and technologies. Coupling<br />

these efforts with a secure digital ID can be instrumental in<br />

rethinking the current data ownership models.<br />

In the EU, a significant porti<strong>on</strong> of the budget and other<br />

funding instruments is earmarked for the development of<br />

digital skills, and digital educati<strong>on</strong> systems fit for purpose,<br />

as we must prepare the grounds for a seamless transiti<strong>on</strong><br />

of our societies and ec<strong>on</strong>omies into an era powered by<br />

intelligent systems. At both the nati<strong>on</strong>al and the EU levels,<br />

progress is necessary to calibrate educati<strong>on</strong> and professi<strong>on</strong>al<br />

training with the needs for digital skills, to enable greater<br />

understanding of AI across generati<strong>on</strong>s, and stimulate career<br />

paths into future jobs of AI innovati<strong>on</strong> and research.<br />

Our visi<strong>on</strong> is to foster technology that creates value for<br />

all, and enables our society to progress without impeding<br />

<strong>on</strong> the rights of Europeans. Striking this sensitive balance is<br />

a complicated endeavour, however the accelerati<strong>on</strong> of AI<br />

development, and the reach of its impact, implore us to get it<br />

right from the outset. The EU is a global champi<strong>on</strong> of privacy<br />

and data protecti<strong>on</strong> in the digital age. This achievement<br />

must be leveraged in establishing a safe ecosystem, where<br />

trustworthy AI enables us to achieve our objectives with<br />

regulatory c<strong>on</strong>trol, and establish a fair and equal society fit<br />

for the future.<br />

The European principle-based<br />

framework for AI systems must<br />

translate and establish by law,<br />

respect to our rights in the digital<br />

age. Progress has been made<br />

with landmark initiatives such as<br />

the GDPR, however more work is<br />

needed in this space to establish<br />

legally binding rules which provide<br />

developers and innovators with more<br />

legal clarity, and award individuals<br />

str<strong>on</strong>ger protecti<strong>on</strong>s of their rights<br />

and freedoms.<br />

22 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

<strong>Artificial</strong> <strong>Intelligence</strong>: a geopolitical<br />

and ec<strong>on</strong>omic game changer<br />

Adam Bielan<br />

Member of the<br />

European Parliament<br />

from Poland (ECR),<br />

Member of the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong><br />

<strong>Intelligence</strong> in a Digital<br />

Age<br />

By Adam Bielan<br />

<strong>Artificial</strong> intelligence (AI) has been<br />

developing and broadening<br />

rapidly. It has increasingly<br />

become over the last years <strong>on</strong>e of the<br />

pillars of digital transformati<strong>on</strong>. AI’s<br />

influence now entails numerous sectors<br />

such as health, educati<strong>on</strong>, transport,<br />

cybersecurity, or research. AI is not <strong>on</strong>ly<br />

about our ec<strong>on</strong>omies, scaling-up effects<br />

or efficiency gains. As we are currently<br />

witnessing an escalating global race for<br />

digital leadership, it has turned into a<br />

geopolitical subject with increasingly<br />

high stakes.<br />

While lagging behind the tech<br />

giants, notably the American and<br />

Chinese digital empires, the EU now<br />

seeks to take part in the formulati<strong>on</strong><br />

of an internati<strong>on</strong>al AI approach and<br />

of its principles. In this c<strong>on</strong>text, the<br />

EU is highlighting the importance of<br />

strategic partnerships with key actors<br />

such as China, Japan and the USA, and<br />

stresses the significance of cooperating<br />

with regi<strong>on</strong>al organizati<strong>on</strong>s like the<br />

OECD and the Council of Europe. The<br />

EU Member States can indeed act as a<br />

balancing power between two visi<strong>on</strong>s<br />

for future AI developments. Critical<br />

ethical questi<strong>on</strong>s are <strong>on</strong> the table and<br />

an EU definiti<strong>on</strong> of AI directi<strong>on</strong>s thus can<br />

become an alternative to data models<br />

driven by state security and c<strong>on</strong>trol<br />

interests like in China, and str<strong>on</strong>gly<br />

influenced by the GAFAM interests<br />

and other large Internet platforms and<br />

industries like in the US. The safeguard<br />

of privacy and human rights is indeed<br />

<strong>on</strong>e of the core elements of Member<br />

States’ and the EU’s digital policy to the<br />

benefit of citizens.<br />

The European Uni<strong>on</strong> (EU), through<br />

new programs, increased funds and<br />

a new agenda <strong>on</strong> the matter, wishes<br />

to better address AI challenges and<br />

implement a new strategy vis à vis the<br />

24 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

opportunities <strong>Artificial</strong> <strong>Intelligence</strong> represents. Indeed, the<br />

recent years have seen the end of inacti<strong>on</strong> and the EU is<br />

now catching up with the ‘big giants’. Positive developments<br />

include the White Paper <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> published by<br />

the Commissi<strong>on</strong> and the set-up of a new Special Committee<br />

<strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in a Digital Age (AIDA) by the European<br />

Parliament. The latter recently adopted reports <strong>on</strong> ethical<br />

aspects, civil liability regime and intellectual property rights.<br />

SHUTTERSTOCK<br />

I believe this is the right directi<strong>on</strong> for citizens of the European<br />

Uni<strong>on</strong>.<br />

On top of this, the Covid-19 pandemic has underlined the<br />

importance for EU Member States and the European Uni<strong>on</strong><br />

in general to boost its investments in several areas in order<br />

to remain an epicenter of the geopolitical chessboard and a<br />

place for innovati<strong>on</strong> and ec<strong>on</strong>omic growth.<br />

C<strong>on</strong>cerning ec<strong>on</strong>omic perspectives, some progress has<br />

undeniably been made. Nevertheless, we still need to focus<br />

<strong>on</strong> skills, digital literacy, job creati<strong>on</strong> and to address job<br />

losses and people left behind. Digital inequalities are a more<br />

important than ever.<br />

Small and Medium Enterprises (SMEs) are the backb<strong>on</strong>e of<br />

the European ec<strong>on</strong>omy. They are the most challenged when<br />

new policies come into force and are a spring for innovati<strong>on</strong><br />

and growth. The EU Member States and instituti<strong>on</strong>s have kept<br />

this in mind, with plans to accompany SMEs to adapt their<br />

procedures, their business models and their ways of working<br />

using AI.However, much remains to be d<strong>on</strong>e in order to make<br />

this shared visi<strong>on</strong> a reality. Most notably, the necessity to<br />

have a clear and comprehensive framework is evident. A<br />

potentially complex regulatory framework will be much<br />

harder to digest for European SMEs, which lack extensive law<br />

departments compared to global players. Therefore, further<br />

acti<strong>on</strong>s are needed to bridge that gap. Digital Innovati<strong>on</strong> Hubs<br />

and Regulatory Sandboxes can represent in that regard a<br />

positive development, and administrative burden reducti<strong>on</strong><br />

policies should be a priority <strong>on</strong> our agenda.<br />

Also, I believe it is necessary to provide start-ups and SMEs<br />

access with the widest possible range of data and algorithm<br />

libraries as the lack of such a possibility is slowing down their<br />

development, which may eventually not be fast enough to<br />

challenge their internati<strong>on</strong>al competitors. Available data,<br />

together with its usability, accessibility and interoperability,<br />

is essential for a « culture of data » to grow in the European<br />

Uni<strong>on</strong>. The fragmentati<strong>on</strong> of European data has l<strong>on</strong>g<br />

prevented access to available data, with each Member State<br />

tending to work <strong>on</strong> its own nati<strong>on</strong>al data plan. This c<strong>on</strong>trasts<br />

with China, whose populati<strong>on</strong> and country size have early <strong>on</strong><br />

encouraged cloud and data storage practices.<br />

In additi<strong>on</strong> to SMEs, <strong>Artificial</strong> <strong>Intelligence</strong> could also better<br />

c<strong>on</strong>nect and mutually benefit the public sector. Strengthening<br />

collaborati<strong>on</strong> between the public sector and the small and<br />

medium enterprises can take many forms. I have for instance<br />

proposed a few m<strong>on</strong>ths ago a pilot project with fellow<br />

MEPs establishing the « EU GovTech platform », designed<br />

to bring the best out of well-functi<strong>on</strong>ing nati<strong>on</strong>al GovTech<br />

frameworks to the benefit of the entire single market. These<br />

frameworks enable the aggregati<strong>on</strong> of EU and nati<strong>on</strong>al public<br />

instituti<strong>on</strong>s’ demand for modern technologies. This means<br />

increasing access of EU’s innovative companies to the public<br />

procurement market.<br />

We, as European lawmakers, will require strenuous efforts<br />

to deliver innovati<strong>on</strong>-friendly and future-proof Single Market<br />

legislati<strong>on</strong> that remains both understandable for citizens<br />

and flexible for businesses. This is also our priority in AIDA<br />

committee. The envir<strong>on</strong>ment in which we find ourselves<br />

represents an opportunity for lawmakers and nati<strong>on</strong>al<br />

leaders to prove how serious we are in supporting SMEs.<br />

This is not <strong>on</strong>ly an ec<strong>on</strong>omic matter, defining the directi<strong>on</strong>s<br />

we want to lead our ec<strong>on</strong>omies. These questi<strong>on</strong>s are also<br />

intrinsically linked to a global scene in which the EU is trying to<br />

make a stand. That is why we need to step up our efforts, as<br />

AI, its framework and its development in the coming years will<br />

undeniably play a part in defining tomorrow’s global order.<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

25


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Is “Open Strategic Aut<strong>on</strong>omy”<br />

… “artificial” or “intelligent”?<br />

By Anna-Michelle Asimakopoulou<br />

Anna-Michelle<br />

Asimakopoulou<br />

Member of the<br />

European Parliament<br />

from Greece (EPP), Vice-<br />

Chair of the Committee<br />

<strong>on</strong> Internati<strong>on</strong>al Trade,<br />

Member of the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong><br />

<strong>Intelligence</strong> in a Digital<br />

Age<br />

Paving the digital path<br />

for Europe should<br />

involve a human centric,<br />

transparent, trustworthy<br />

and inclusive artificial<br />

intelligence strategy. One<br />

that protects citizens and<br />

businesses in Europe and<br />

fosters innovati<strong>on</strong><br />

and competitiveness.<br />

At the 2020 State of the<br />

Uni<strong>on</strong> address, European<br />

Commissi<strong>on</strong> President Ursula<br />

v<strong>on</strong> der Leyen has unveiled her<br />

ambitious goal to make this decade<br />

“Europe’s Digital Decade”.<br />

The debate over digital<br />

developments is becoming more<br />

and more lively in Europe, and the<br />

accelerati<strong>on</strong> of the pace of digitizati<strong>on</strong><br />

as a result of the COVID-19 pandemic<br />

is shaping the “new normal”. The<br />

urgent need to analyze vast amounts<br />

of health data to understand and<br />

c<strong>on</strong>trol the virus has prompted us<br />

to invest more heavily in artificial<br />

intelligence and data management.<br />

The pandemic has also brought<br />

to light Europe’s overdependence in<br />

several critical and strategic sectors.<br />

Thus, the EU instituti<strong>on</strong>s were “forced”<br />

to revisit Europe’s industrial strategy<br />

in order to offer greater resilience<br />

and diversificati<strong>on</strong> of supply chains in<br />

strategic areas such as health supplies<br />

and medicine. As a result, Europe is<br />

today, more committed to becoming<br />

“strategically aut<strong>on</strong>omous”.<br />

<strong>Artificial</strong> <strong>Intelligence</strong> is at the<br />

forefr<strong>on</strong>t of the digital power race.<br />

The debate over Αrtificial Ιntelligence<br />

encompasses technological, ethical,<br />

legal, socio-ec<strong>on</strong>omic as well as<br />

geopolitical aspects. The OECD, the<br />

Council of Europe, the EU, the US,<br />

China and many other countries have<br />

developed their own strategies and<br />

guidelines <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong>.<br />

In additi<strong>on</strong> to the many standing<br />

committees dealing with AI in the<br />

European Parliament, the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong> in<br />

the Digital Age (AIDA) was created to<br />

take a horiz<strong>on</strong>tal approach in setting<br />

a l<strong>on</strong>g-term roadmap for AI in Europe.<br />

Europe is working hard to be<br />

at the forefr<strong>on</strong>t of the technology<br />

revoluti<strong>on</strong> and to ensure the<br />

competitiveness of its technology<br />

businesses. It strives to find the right<br />

balance, which promotes innovati<strong>on</strong><br />

and competitiveness, builds trust<br />

and protects our rights, values and<br />

principles. Europe aims to provide<br />

a trustworthy digital envir<strong>on</strong>ment to<br />

our citizens and businesses to shape<br />

the c<strong>on</strong>diti<strong>on</strong>s for the development<br />

and use of AI. This is <strong>on</strong>e of the main<br />

objectives of the European Strategy<br />

for Data and the Regulati<strong>on</strong> <strong>on</strong> Data<br />

Governance recently proposed by the<br />

European Commissi<strong>on</strong>, building up<strong>on</strong><br />

existing regulati<strong>on</strong>s such as pers<strong>on</strong>al<br />

data protecti<strong>on</strong> (GDPR), c<strong>on</strong>sumer<br />

protecti<strong>on</strong> and competiti<strong>on</strong> rules.<br />

Meanwhile, China is investing<br />

billi<strong>on</strong>s in AI, 5G, quantum computing<br />

and chip fabricati<strong>on</strong>, as part of a<br />

strategy, launched in July 2017, to<br />

establish itself as the world’s AI<br />

leader. By the year 2030, it expects<br />

to have a domestic AI industry worth<br />

at least $150 billi<strong>on</strong>. It steals IPR, tries<br />

to dominate internati<strong>on</strong>al standard<br />

setting bodies and lures countries<br />

into its techno orbit through the<br />

“digital silk road” initiative. China has<br />

1,4 bn people to produce data, and<br />

its’ own robust technology giants<br />

which it subsidizes with state aid<br />

and uses their products in the Party’s<br />

surveillance state.<br />

This potential of new<br />

“dependencies” namely <strong>on</strong> holders<br />

26 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

ISTOCK<br />

of certain critical technologies who use<br />

them in an “autocratic” manner, as well<br />

as <strong>on</strong> those c<strong>on</strong>trolling large volumes<br />

of data is why, Europe is striving to<br />

create its’ own “open yet sovereign<br />

Single Market for Data” which is crucial<br />

for AI development. Therefore, AI can<br />

be c<strong>on</strong>sidered as a “key” to achieving<br />

European “digital sovereignty” as part of<br />

the overall strategy of “Open Strategic<br />

Aut<strong>on</strong>omy.” As Commissi<strong>on</strong> Vice-<br />

President Maros Sefcovic emphasized<br />

“we can make Europe more resilient by<br />

boosting our open strategic aut<strong>on</strong>omy<br />

and building a fairer, climate-neutral and<br />

digitally sovereign future.”<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

There is much discussi<strong>on</strong> about<br />

what the meaning of “Open Strategic<br />

Aut<strong>on</strong>omy” actually is. Is it legitimate<br />

protecti<strong>on</strong> or undue and covert<br />

“protecti<strong>on</strong>ism?” “Aut<strong>on</strong>omy”, or<br />

“αυτονομία” in Greek, comes from the<br />

words αὐτός (autós, “self”) and νόμος<br />

(nómos, “law”). It literally means being<br />

free to make your own rules. Actually, It<br />

is your right to be able to make your own<br />

rules. Making these rules in Europe has<br />

produced our comm<strong>on</strong>ly shared values:<br />

democracy, the rule of law, and respect<br />

for human rights.<br />

Paving the digital path for Europe<br />

should involve a human centric,<br />

transparent, trustworthy and inclusive<br />

artificial intelligence strategy. One<br />

that protects citizens and businesses<br />

in Europe and fosters innovati<strong>on</strong><br />

and competitiveness. Becoming<br />

“protecti<strong>on</strong>ist” would not <strong>on</strong>ly be<br />

“artificial” it would also be untenable.<br />

A digitally sovereign or strategically<br />

aut<strong>on</strong>omous Europe, must be open<br />

to the world. It must create practical<br />

alliances with like-minded partners to<br />

set internati<strong>on</strong>al standards, and create<br />

rules based <strong>on</strong> comm<strong>on</strong>ly shared<br />

values. This is not <strong>on</strong>ly the “intelligent”<br />

choice, it is also the <strong>on</strong>ly democratic<br />

<strong>on</strong>e.<br />

27


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

An <strong>Artificial</strong> <strong>Intelligence</strong><br />

For Human Well-Being<br />

By Iban Garcia del Blanco<br />

SHUTTERSTOCK<br />

The massive rollout of artificial<br />

intelligence (AI) entails a<br />

technological leap that will cause<br />

(that is already causing) very substantial<br />

changes in the labor market, in the<br />

relati<strong>on</strong>ship with public authorities, in<br />

pers<strong>on</strong>al relati<strong>on</strong>ships and even in our<br />

own domestic life.<br />

Any technological progress carries<br />

benefits and risks. When Dworkin spoke<br />

of science, he highlighted its ambivalence<br />

both as a promise and as a threat. When<br />

we talk about artificial intelligence, we talk<br />

about benefits and/or risks <strong>on</strong> a scale not<br />

previously known, taking into account its<br />

intrinsic power. Due to its characteristics<br />

and its potential, this technology will take<br />

us through dizzying changes that would<br />

otherwise take generati<strong>on</strong>s. Fortunately,<br />

AI provides us with powerful tools to<br />

better address the major challenges of<br />

our time: the fight against climate change,<br />

the fight against depopulati<strong>on</strong>; and even<br />

to anticipate future pandemics such<br />

as COVID19, which has put up against<br />

the ropes our resilience as societies,<br />

and that we can now better address by<br />

accelerating research <strong>on</strong> drugs, vaccines,<br />

and developing state-of-the-art tracking<br />

applicati<strong>on</strong>s.<br />

As the regulatory superpower it claims<br />

to be, Europe must lead the way globally.<br />

I champi<strong>on</strong> a broad pact between the<br />

public and private sectors, each within<br />

the scope of their competences, that<br />

enables the unimpeded promoti<strong>on</strong> of<br />

technological development <strong>on</strong> the <strong>on</strong>e<br />

hand, and an ecosystem of trust for the<br />

European citizens’ peace of mind <strong>on</strong> the<br />

other. The ultimate goal of AI can <strong>on</strong>ly be<br />

the improvement our societies and our<br />

citizens’ lives.<br />

Early this year, the European<br />

Commissi<strong>on</strong> published a White Paper <strong>on</strong><br />

artificial intelligence together with a digital<br />

strategy –and by the beginning of 2021,<br />

it intends to release an all-encompassing<br />

regulati<strong>on</strong> <strong>on</strong> the phenomen<strong>on</strong>. In this<br />

regard, the European Parliament is <strong>on</strong>e<br />

step ahead: I had myself the h<strong>on</strong>or of<br />

being the rapporteur for the first European<br />

legislative initiative <strong>on</strong> the “Ethical aspects<br />

of artificial <strong>Intelligence</strong>, robotics and related<br />

technologies”, approved this past October<br />

with an extraordinary backing by the<br />

plenary of the Parliament, with the intent<br />

to indicate the Commissi<strong>on</strong> our ideas and<br />

positi<strong>on</strong>s related to the future regulati<strong>on</strong>.<br />

As noted above, Europe wants and can<br />

pi<strong>on</strong>eer the legal establishment of an ethical<br />

threshold that both protects European<br />

citizens from the possible adversities that<br />

this technological evoluti<strong>on</strong> entails, and<br />

28 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

provides an added value of trust to European AI in<br />

the world. An ethical threshold c<strong>on</strong>sistent with our<br />

European principles and values, reflected in the<br />

Charter of Fundamental Rights of the European<br />

Uni<strong>on</strong>, and c<strong>on</strong>gruent with our civilizing project.<br />

A legislati<strong>on</strong> inspired by a humanistic approach<br />

and focused <strong>on</strong> technological development. A<br />

regulati<strong>on</strong> applicable to both, AI developed in<br />

Europe or willing to operate in the Uni<strong>on</strong>, and with<br />

the aim of becoming a basic framework shared<br />

throughout the world <strong>on</strong> minimum requirements<br />

in the development and use of this technology.<br />

The planning of the sector should not be<br />

left off solely in the hands of the market. From<br />

the Parliament, we assert the need for public<br />

participati<strong>on</strong> that safeguards objectives bey<strong>on</strong>d<br />

the possible ec<strong>on</strong>omic profitability, so that the<br />

measurable aspects in terms of social profitability<br />

are also the subject of research and development:<br />

better public services, social resp<strong>on</strong>sibility,<br />

envir<strong>on</strong>mental sustainability, gender equality...<br />

I also perceive as essential a public-private<br />

collaborati<strong>on</strong> that allows mobilizing the sufficient<br />

amount of resources needed to catch up with<br />

the investment efforts d<strong>on</strong>e in other parts of the<br />

world -such is the strategy that the Commissi<strong>on</strong><br />

itself proposes in its White Paper.<br />

From a regulatory viewpoint, it is clear that<br />

the Uni<strong>on</strong> understands the need to establish<br />

a demanding framework for safeguarding<br />

citizens’ rights, as well as the essential principles<br />

c<strong>on</strong>tained in the Lisb<strong>on</strong> Treaty. N<strong>on</strong>etheless, we<br />

also believe that certain margin of maneuver is<br />

essential for the operators, and that they are the<br />

<strong>on</strong>es who assume the need to bind themselves<br />

with an ethical model in the development and<br />

deployment. Legislators are aware of the need not<br />

to establish an oppressive regulatory framework<br />

that stifles the initiative, and also that it will be<br />

impossible to understand such a complex and<br />

changing reality without a flexible framework<br />

that does not become obsolete with the arrival<br />

of the following innovati<strong>on</strong>. Likewise, <strong>on</strong>e of the<br />

main objectives is to avoid the fragmentati<strong>on</strong> of<br />

the European digital internal market, while also<br />

complying with the sacred principle of subsidiarity.<br />

That is why the report approved by the Parliament<br />

designs a top-down governance model: a<br />

European coordinating body able to harm<strong>on</strong>ize<br />

the regulatory development throughout the<br />

Uni<strong>on</strong> and to adapt quickly to technological<br />

developments; and entities resp<strong>on</strong>sible for<br />

administering and enforcing standards at the<br />

nati<strong>on</strong>al level. There has been an intense debate<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

Iban Garcia del<br />

Blanco<br />

Member of the<br />

European Parliament<br />

form Spain (S&D), Vice-<br />

Chair of the Committee<br />

<strong>on</strong> Legal Affairs,<br />

Member of the Special<br />

Committee <strong>on</strong> <strong>Artificial</strong><br />

<strong>Intelligence</strong> in a Digital<br />

Age<br />

around who should exercise that role without<br />

the report ending up unraveling it. In my opini<strong>on</strong>,<br />

the existence of a European agency in charge is<br />

necessary, with sufficient rule to avoid the need<br />

to regulate every small change that this c<strong>on</strong>stantly<br />

growing technological envir<strong>on</strong>ment is generating.<br />

The report approved by the European<br />

Parliament puts emphasis <strong>on</strong> the c<strong>on</strong>trol of the<br />

so-called “high-risk applicati<strong>on</strong>s”, for which it<br />

provides c<strong>on</strong>trols prior to their use and throughout<br />

their operati<strong>on</strong>, as it establishes demanding<br />

obligati<strong>on</strong>s related to transparency, auditability<br />

and reversibility. To define this high risk, the text<br />

proposes a combinati<strong>on</strong> of categories referring to<br />

the degree of predictability of putting a community<br />

or an individual at risk, the use and the sector<br />

where it will be used. Through this mixed system<br />

we intend to give legal certainty to the system and,<br />

at the same time, generate what has to be known<br />

as “trustworthy ecosystem”.<br />

Our objective is also that the design, the<br />

development, the c<strong>on</strong>trol and the supervisi<strong>on</strong><br />

of this regulatory framework be participated by<br />

all citizens, and especially by the most involved<br />

or affected individuals and groups. The text<br />

establishes a mandate for all European and nati<strong>on</strong>al<br />

supervisory bodies so that, in an indispensable<br />

way and periodically, they have the assistance<br />

and participati<strong>on</strong> of civil society in the design of<br />

the main characteristics of the model, with special<br />

attenti<strong>on</strong> to integrate the perspective of the small<br />

and medium companies, the uni<strong>on</strong>s, or the<br />

c<strong>on</strong>sumers. We intend not <strong>on</strong>ly a co-resp<strong>on</strong>sibility<br />

<strong>on</strong> the compliance and enforcement, but also their<br />

inclusi<strong>on</strong> somehow or other in the design of the<br />

governance mechanisms for the entire system.<br />

Finally, I would like to highlight the need to<br />

incorporate the general public into the debate and<br />

knowledge of the implicati<strong>on</strong>s of AI. This debate<br />

cannot be <strong>on</strong>ly reduced to a group of experts,<br />

operators, legislators and even associati<strong>on</strong>s and<br />

groups of users. Such a disruptive technology has<br />

to be subject to democratic c<strong>on</strong>trol; societies as a<br />

whole have to be aware of this reality and be able to<br />

make big decisi<strong>on</strong>s about the models of society they<br />

want. For this reas<strong>on</strong>, I prefer to talk about “digital<br />

literacy” rather than “acquisiti<strong>on</strong> of digital skills”<br />

-and I believe that it is the duty of public authorities<br />

to make the main c<strong>on</strong>cepts understandable to their<br />

citizens and to guarantee a mature public debate<br />

around AI. In this, the very survival of democracy<br />

is at stake, taking into account the disturbing social<br />

effects that an unc<strong>on</strong>trolled applicati<strong>on</strong> of AI can<br />

have in some areas.<br />

29


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

When the President of the<br />

European Commissi<strong>on</strong> made<br />

her first speech to the European<br />

Parliament in December 2019, she officially<br />

recognized “<strong>Artificial</strong> <strong>Intelligence</strong>” as an area<br />

of strategic importance for the European<br />

Uni<strong>on</strong>. Nine m<strong>on</strong>ths later, addressing <strong>on</strong>ce<br />

again the European Parliament in her maiden<br />

“State of the Uni<strong>on</strong>’ speech”, she had moved<br />

from spelling out “<strong>Artificial</strong> <strong>Intelligence</strong>” to<br />

talking in terms of ‘AI’ – so well-known is the<br />

technology within the EU bubble now. This is<br />

not so surprising when AI is being deployed<br />

across most (if not all) sectors of the ec<strong>on</strong>omy,<br />

from disease diagnosis to minimizing the<br />

envir<strong>on</strong>mental impact of farming.<br />

It is true that much work has been d<strong>on</strong>e<br />

by the European Commissi<strong>on</strong> since President<br />

Ursula V<strong>on</strong> der Leyen and her team took<br />

office. Already promised in December 2019<br />

was a “legislative proposal” <strong>on</strong> AI – what was<br />

delivered was an AI White Paper in February.<br />

While this, admittedly, is not a legislative<br />

proposal, it is a document that has kick-started<br />

the debate <strong>on</strong> human and ethical AI, the use of<br />

Big Data, and how these technologies can be<br />

used to create wealth for society and business.<br />

The Commissi<strong>on</strong>’s White Paper<br />

emphasizes the importance of establishing<br />

a uniform approach to AI across the EU’s 27<br />

member states, where different countries<br />

have started to take their own approach to<br />

regulati<strong>on</strong>, and thus potentially, are erecting<br />

barriers to the EU’s single market. It also,<br />

importantly for Huawei, talks about plans to<br />

take a risk-based approach to regulating AI.<br />

At Huawei we studied the White Paper<br />

with interest, and al<strong>on</strong>g with (more than<br />

1,250!) other stakeholders, c<strong>on</strong>tributed to<br />

the Commissi<strong>on</strong>’s public c<strong>on</strong>sultati<strong>on</strong>, which<br />

closed <strong>on</strong> 14 June, giving our input and ideas<br />

as experts working in this field.<br />

Finding the Balance<br />

The main point that we emphasized to the<br />

Commissi<strong>on</strong> is the need to find the right<br />

balance between allowing innovati<strong>on</strong> and<br />

ensuring adequate protecti<strong>on</strong> for citizens.<br />

In particular, we focused <strong>on</strong> the need for<br />

high-risk applicati<strong>on</strong>s to be regulated under<br />

a clear legal framework, and proposed ideas<br />

for what the definiti<strong>on</strong> of AI should be. In<br />

this regard, we believe the definiti<strong>on</strong> of AI<br />

should come down to its applicati<strong>on</strong>, with<br />

risk assessments focusing <strong>on</strong> the intended<br />

use of the applicati<strong>on</strong> and the type of impact<br />

Angeliki<br />

Dedopoulou<br />

Senior Manager for<br />

EU Public Affairs with<br />

Huawei Technologies<br />

30 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

SHUTTERSTOCK<br />

AI in<br />

the EU:<br />

Balancing<br />

Benefit &<br />

C<strong>on</strong>trol<br />

By Angeliki Dedopoulou<br />

resulting from the AI functi<strong>on</strong>. If there<br />

are detailed assessment lists and<br />

procedures in place for companies<br />

to make their own self-assessments,<br />

then this will reduce the cost of initial<br />

risk assessment – which must match<br />

sector-specific requirements.<br />

We have recommended that<br />

the Commissi<strong>on</strong> looks into bringing<br />

together c<strong>on</strong>sumer organizati<strong>on</strong>s,<br />

academia, member states, and<br />

businesses to assess whether an AI<br />

system may qualify as high-risk. There<br />

is already an established body set up<br />

to deal with these kinds of things – the<br />

standing Technical Committee High<br />

Risk Systems (TCRAI). We believe this<br />

body could assess and evaluate AI<br />

systems against high-risk criteria both<br />

legally and technically. If this body<br />

took some c<strong>on</strong>trol, combined with a<br />

voluntary labelling system, <strong>on</strong> offer<br />

would be a governance model that<br />

• c<strong>on</strong>siders the entire supply chain<br />

• sets the right criteria and targets<br />

the intended goal of transparency for<br />

c<strong>on</strong>sumers/businesses<br />

• incentivizes the resp<strong>on</strong>sible<br />

development and deployment of AI,<br />

and<br />

• Creates an ecosystem of trust.<br />

Outside of the high-risk applicati<strong>on</strong>s<br />

of AI, we have stated to the Commissi<strong>on</strong><br />

that the existing legal framework based<br />

<strong>on</strong> fault-based and c<strong>on</strong>tractual liability<br />

is sufficient – even for state-of-theart<br />

technologies like AI, where there<br />

could be a fear that new technology<br />

requires new rules. Extra regulati<strong>on</strong><br />

is however, unnecessary; it would be<br />

over-burdensome and discourage the<br />

adopti<strong>on</strong> of AI.<br />

From what we know of the current<br />

thinking within the Commissi<strong>on</strong>, it<br />

appears that it also plans to take a<br />

risk-based approach to regulating AI.<br />

Specifically, the Commissi<strong>on</strong> proposes<br />

focusing in the short-term <strong>on</strong> “highrisk”<br />

AI applicati<strong>on</strong>s – meaning either<br />

high-risk sectors (like healthcare) or in<br />

high-risk use (for example whether it<br />

produces legal or similarly significant<br />

effects <strong>on</strong> the rights of an individual).<br />

So, What Happens Next?<br />

The Commissi<strong>on</strong> has a lot of work to do<br />

in getting through all the c<strong>on</strong>sultati<strong>on</strong><br />

resp<strong>on</strong>ses, taking into account the<br />

needs of business, civil society, trade<br />

associati<strong>on</strong>s, NGOs and others. The<br />

additi<strong>on</strong>al burden of working through<br />

the cor<strong>on</strong>avirus crisis has not helped<br />

matters, with the formal resp<strong>on</strong>se from<br />

the Commissi<strong>on</strong> now not expected until<br />

Q1 2021.<br />

Cor<strong>on</strong>avirus has been a game-changer<br />

for technology use in healthcare of<br />

course, and will no doubt have an<br />

impact <strong>on</strong> the Commissi<strong>on</strong>’s thinking in<br />

this area. Terms such as “telemedicine”<br />

have been talked about for years, but the<br />

crisis has turned virtual c<strong>on</strong>sultati<strong>on</strong>s<br />

into reality – almost overnight.<br />

Bey<strong>on</strong>d healthcare we see AI<br />

deployment being c<strong>on</strong>tinuously rolled<br />

out in areas such as farming and in the<br />

EU’s efforts to combat climate change.<br />

We are proud at Huawei to be part of<br />

this c<strong>on</strong>tinuous digital development in<br />

Europe – a regi<strong>on</strong> in which and for which<br />

we have been working for 20 years.<br />

The development of digital skills is at<br />

the heart of this, which not <strong>on</strong>ly equips<br />

future generati<strong>on</strong>s with the tools to seize<br />

the potential of AI, but will also enable<br />

the current workforce to be active<br />

and agile in an ever-changing world:<br />

there is a need for an inclusive, lifel<strong>on</strong>g<br />

learning-based and innovati<strong>on</strong>-driven<br />

approach to AI educati<strong>on</strong> and training,<br />

to help people transiti<strong>on</strong> between jobs<br />

seamlessly. The job market has been<br />

heavily impacted by the crisis, and quick<br />

soluti<strong>on</strong>s are needed.<br />

As we wait for the Commissi<strong>on</strong>’s<br />

formal resp<strong>on</strong>se to the White Paper,<br />

what more is there to say about AI<br />

in Europe? Better healthcare, safer<br />

and cleaner transport, more efficient<br />

manufacturing, smart farming and<br />

cheaper and more sustainable energy<br />

sources: these are just a few of the<br />

benefits AI can bring to our societies,<br />

and to the EU as a whole. Huawei will<br />

work with EU policymakers and will<br />

strive to ensure the regi<strong>on</strong> gets the<br />

balance right: innovati<strong>on</strong> combined with<br />

c<strong>on</strong>sumer protecti<strong>on</strong>.<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

31


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

AI and misinformati<strong>on</strong><br />

Str<strong>on</strong>g rules for digital<br />

opini<strong>on</strong>-forming marketplaces<br />

By Alexandra Geese<br />

Alexandra<br />

Geese<br />

Member of the<br />

European Parliament<br />

from Germany<br />

(Greens-European Free<br />

Alliance), Member of<br />

the Special Committee<br />

<strong>on</strong> <strong>Artificial</strong> <strong>Intelligence</strong><br />

in a Digital Age<br />

The Covid crisis in<br />

particular has led to<br />

a false informati<strong>on</strong><br />

epidemic, with<br />

increased yearning<br />

for simple answer<br />

and quick fixes.<br />

Simultaneously, the<br />

corrective effect of real<br />

life c<strong>on</strong>tact is lacking.<br />

Who is protecting us?<br />

There is no privacy <strong>on</strong> the<br />

internet and nothing is as free<br />

as it looks. And yet we c<strong>on</strong>fide<br />

everything to it, even giving it authority<br />

over democratic discourse. That is<br />

dangerous. Because communicati<strong>on</strong><br />

<strong>on</strong> <strong>on</strong>line platforms is c<strong>on</strong>trolled<br />

by algorithms programmed with<br />

ruthless business interests, seeking<br />

to keep people <strong>on</strong> sites as l<strong>on</strong>g as<br />

possible to show them adverts. That<br />

works best with extreme c<strong>on</strong>tent, for<br />

our str<strong>on</strong>gest emoti<strong>on</strong>s are fear and<br />

anger.<br />

Hate speech, misinformati<strong>on</strong>,<br />

polarisati<strong>on</strong> and prejudices fall <strong>on</strong><br />

fertile ground, currently exacerbated<br />

by the Covid crisis. We are all<br />

spending much more time <strong>on</strong>line,<br />

thereby automatically coming across<br />

more false informati<strong>on</strong>, including<br />

disinformati<strong>on</strong> deliberately spread<br />

by domestic or foreign parties and a<br />

whole host of other factually incorrect,<br />

dec<strong>on</strong>textualised or obsolete c<strong>on</strong>tent<br />

which mislead people, reinforce<br />

dubious narratives and devalue true<br />

expert knowledge.<br />

That can have fatal c<strong>on</strong>sequences,<br />

such as D<strong>on</strong>ald Trump alleging<br />

in spring 2020 that it might be<br />

“interesting” to inject people with<br />

disinfectant to fight cor<strong>on</strong>avirus. A<br />

US government expert had previously<br />

correctly explained that bleach and<br />

disinfectant could quickly kill the<br />

cor<strong>on</strong>avirus <strong>on</strong> metal surfaces. The<br />

absolutely n<strong>on</strong>sensical idea which<br />

Trump then released into the world<br />

cost human lives, seeing significant<br />

increases in calls to the pois<strong>on</strong> centre.<br />

People were gargling with bleach. A<br />

family in Florida even sold bleach<br />

as a “miracle mineral soluti<strong>on</strong>” and<br />

founded a church to sell it.<br />

The Covid crisis in particular has led<br />

to a false informati<strong>on</strong> epidemic, with<br />

increased yearning for simple answer<br />

and quick fixes. Simultaneously, the<br />

corrective effect of real life c<strong>on</strong>tact is<br />

lacking. Who is protecting us?<br />

Not the platform operators,<br />

because misinformati<strong>on</strong> helps their<br />

business interests. Dubious but<br />

highly emoti<strong>on</strong>al c<strong>on</strong>tent boosts their<br />

profits. Fact-checking is a good way of<br />

preventing the worst excesses. But it<br />

is no panacea. Twitter and Facebook<br />

dem<strong>on</strong>strated how misleading c<strong>on</strong>tent<br />

can be handled differently during<br />

the US presidential electi<strong>on</strong>. Whilst<br />

Twitter placed fact-checking labels<br />

<strong>on</strong> numerous tweets by President<br />

Trump, Facebook and its algorithms<br />

allowed the “Stop the Steal” group to<br />

amass 200,000 members overnight,<br />

despite it disseminating false electi<strong>on</strong><br />

informati<strong>on</strong> and inciting violence, thus<br />

breaching the network’s terms and<br />

c<strong>on</strong>diti<strong>on</strong>s. However, democratic<br />

governments must not make arbitrary<br />

decisi<strong>on</strong>s about <strong>on</strong>line c<strong>on</strong>tent, either.<br />

Freedom of expressi<strong>on</strong> is precious,<br />

and no government should be able<br />

to intervene in c<strong>on</strong>tent moderati<strong>on</strong><br />

<strong>on</strong> a political whim.<br />

Rather, policy-makers ought to<br />

draft and implement clear rules.<br />

First of all, uniform rules for dealing<br />

with illegal c<strong>on</strong>tent. But the majority<br />

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PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

of misinformati<strong>on</strong> is not illegal. Should<br />

we prohibit people from sharing private<br />

c<strong>on</strong>tent, the validity of which they cannot<br />

judge? Of course not.<br />

What we can demand and desperately<br />

need, however, is transparency, first of<br />

all for recommendati<strong>on</strong> systems – the<br />

artificial intelligence employed to govern<br />

c<strong>on</strong>tent. A Wall Street Journal report<br />

found extremist c<strong>on</strong>tent in a third of<br />

all Facebook groups. The groups were<br />

recommended to 66% of members by a<br />

Facebook algorithm. We have a societal<br />

right to know about and publicly debate<br />

these decisi<strong>on</strong> mechanisms. Meaningful<br />

transparency will be increasingly<br />

important in the future - just think about<br />

deep fakes – but it is already urgent.<br />

AlgorithmWatch, a Berlin-based NGO,<br />

has made c<strong>on</strong>crete proposals regarding<br />

researchers’ and investigative journalists’<br />

access to raw data.<br />

The mechanisms which currently<br />

c<strong>on</strong>trol our communicati<strong>on</strong> and<br />

significant porti<strong>on</strong>s of the basic<br />

informati<strong>on</strong> in public debate are a<br />

veritable black box. Independent<br />

researchers <strong>on</strong>ly have restricted access<br />

to data, with access to public applicati<strong>on</strong><br />

programming interfaces (APIs) being<br />

increasingly curtailed in recent years,<br />

leaving Facebook, YouTube and the like<br />

to use every psychological trick to exploit<br />

their knowledge m<strong>on</strong>opoly. As a society,<br />

we must put an end to this. We ought to<br />

be able to co-determine rules for digital<br />

opini<strong>on</strong>-forming marketplaces, based <strong>on</strong><br />

hard facts currently withheld from us by<br />

c<strong>on</strong>glomerates.<br />

I propose “Social Media Councils”<br />

as a model for public debate, similar<br />

to Citizens’ Assemblies in Ireland,<br />

comprising civil society, experts for<br />

freedom of expressi<strong>on</strong>, democracy<br />

and technology, and representatives of<br />

groups particularly affected by hatred<br />

and hate speech. They can trigger public<br />

debates based <strong>on</strong> evidence gained<br />

through transparency obligati<strong>on</strong>s,<br />

identify good and bad practice, and<br />

issue recommendati<strong>on</strong>s for acti<strong>on</strong> to<br />

politicians. Facebook and its internal<br />

ethics committee seek to privatise<br />

precisely this public debate. Facebook’s<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

own internal appraisal of its practices<br />

is commendable, but in the l<strong>on</strong>g run a<br />

committee answerable to the CEO will<br />

never decide in society’s favour over its<br />

own boss’s business interests. That is<br />

why we need space for public reflecti<strong>on</strong>.<br />

Prominent Facebook critics such as<br />

Carole Cadwalladr, who exposed the<br />

Cambridge Analytica scandal, and Roger<br />

McNamee, early investor in Facebook<br />

and venture capitalist, have joined forces<br />

in the “Real Facebook Oversight Board” to<br />

publicise particularly dubious practices.<br />

Micro-targeting and targeted<br />

advertising, i.e. the disseminati<strong>on</strong> of<br />

advertising to very small target groups<br />

based <strong>on</strong> previously collected and<br />

collated data, must also urgently be<br />

banned. The resulting gigantic database<br />

with milli<strong>on</strong>s of highly detailed user<br />

profiles also enables misleading<br />

messages to be spread to especially<br />

ISTOCK<br />

susceptible users and is thus highly<br />

problematic. Moreover, Google and<br />

Facebook c<strong>on</strong>trol large secti<strong>on</strong>s of the<br />

ad-tech market, thereby c<strong>on</strong>stantly<br />

expanding their market shares to<br />

the detriment of European media<br />

outlets. Nowadays, press publishers’<br />

proceeds are also highly dependent<br />

<strong>on</strong> behaviour-based advertisement.<br />

However, the Dutch public broadcaster<br />

NPO has dem<strong>on</strong>strated that equally<br />

successful methods for c<strong>on</strong>text-based<br />

advertisement can exist without pers<strong>on</strong>al<br />

data or spying <strong>on</strong> and pursuing people<br />

via various websites and into their offline<br />

lives. A viable press financing model<br />

is needed to reinforce substantiated<br />

reporting as a foundati<strong>on</strong> of liberty and<br />

democracy, whilst not inadvertently<br />

weakening that very democracy<br />

through the unwanted disseminati<strong>on</strong> of<br />

misinformati<strong>on</strong>.<br />

33


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

ISTOCK<br />

Teach AI in schools.<br />

Win the tech race in 2030.<br />

By K<strong>on</strong>stantinos Kyranakis<br />

Ten years ago every<strong>on</strong>e was talking about the future<br />

referring to 2020 as a really special year. Every nati<strong>on</strong>,<br />

every business, every sports team was making big<br />

plans. Well, COVID ruined most of them, except <strong>on</strong>e. The<br />

COVID crisis accelerated technological advancements almost<br />

everywhere in the world. Zoom calls, Amaz<strong>on</strong> orders, <strong>on</strong>line<br />

project planners, gaming, Netflix and so many quarantine<br />

apps skyrocketed this year.<br />

However the tech king that has really expanded<br />

horiz<strong>on</strong>tally this year is <strong>Artificial</strong> <strong>Intelligence</strong> (AI). Billi<strong>on</strong>s<br />

of people have experimented with face filters <strong>on</strong> a mobile<br />

app. Trilli<strong>on</strong>s of <strong>on</strong>line purchases have been made because<br />

of pers<strong>on</strong>alized suggesti<strong>on</strong>s. And surely while 2020 has not<br />

been the best year for travelling, all those who went through<br />

internati<strong>on</strong>al airports for some reas<strong>on</strong> might have noticed<br />

automatic passport verificati<strong>on</strong>.<br />

34 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

K<strong>on</strong>stantinos<br />

Kyranakis<br />

Member of the Hellenic<br />

Parliament, former<br />

President of the Youth<br />

of the European<br />

People’s Party<br />

Chances are that you fall at least in<br />

<strong>on</strong>e of those categories and if so you have<br />

been exposed to the power of AI which<br />

undoubtedly became a big part of our lives<br />

in 2020 without making too much noise.<br />

From face recogniti<strong>on</strong> to self-driving cars,<br />

AI is growing exp<strong>on</strong>entially and we need<br />

to get ready for what is coming.<br />

Kids entering first grade at elementary<br />

schools this year, will be joining the<br />

workforce in the decade of 2030. If<br />

today we c<strong>on</strong>sider AI to be part of the<br />

successful operati<strong>on</strong>s of a company or<br />

a government, we can <strong>on</strong>ly imagine that<br />

ten years from today it will be absolutely<br />

necessary. It will be omnipresent and<br />

its impact will be taken for granted. All<br />

industries, including transport, logistics,<br />

medicine, c<strong>on</strong>structi<strong>on</strong>, defense,<br />

architecture, customer service and even<br />

tax authorities will be utilizing AI. We have<br />

a duty to prepare the next generati<strong>on</strong> for<br />

what is to come.<br />

That is the reas<strong>on</strong> I submitted a<br />

proposal to the Greek Parliament for AI<br />

to be taught in schools. Obviously, no <strong>on</strong>e<br />

is expecting for 1st graders to become<br />

Pyth<strong>on</strong> developers, but if they learn from<br />

a young age how to think algorithmically,<br />

understand the purposes of AI and realise<br />

what this technology can achieve, then<br />

they will be able to go <strong>on</strong> and accomplish<br />

goals that are hard to even c<strong>on</strong>ceive<br />

today.<br />

C<strong>on</strong>cretely, basic methods and<br />

patterns can be taught in the early<br />

stages of elementary school, followed<br />

by establishing a good base in intuitive<br />

programming languages towards the<br />

end of elementary. Stepping <strong>on</strong> these<br />

building blocks, Machine Learning can<br />

be progressively taught as a less<strong>on</strong> that<br />

combines mathematics and computer<br />

science, two subjects that already exist<br />

in schools. Gamifying this subject with<br />

competiti<strong>on</strong>s such as Robotics will<br />

also prove beneficial. Note that these<br />

steps create a hazy path that could be<br />

followed and mainly aim to initiate the<br />

c<strong>on</strong>versati<strong>on</strong> of AI training in schools. I<br />

expect that more bulletproof plans will be<br />

created by expert committees when that<br />

time comes.<br />

A great experiment is going <strong>on</strong> in<br />

Scandinavia right now. Finland has<br />

foreseen the potential impact of AI and<br />

created a course for efficient and effective<br />

AI training for all, with an ultimate<br />

objective of at least 1% of the populati<strong>on</strong><br />

getting trained. Similarly, Sweden spends<br />

over half a billi<strong>on</strong> € <strong>on</strong> AI research<br />

programs such as W.A.S.P and heavily<br />

invests in its universities. Already in 2018<br />

French President Macr<strong>on</strong> announced the<br />

nati<strong>on</strong>’s l<strong>on</strong>g term AI strategy and while<br />

also menti<strong>on</strong>ing that the country will be<br />

investing north of 1.5billi<strong>on</strong> € to boost<br />

France’s AI capabilities. These are just<br />

some of the examples that illustrate that<br />

Europe is taking this issue seriously.<br />

All that said, no investment will matter<br />

if students across Europe today will not<br />

become part of the AI revoluti<strong>on</strong>. For kids<br />

with an inclinati<strong>on</strong> towards STEM subjects,<br />

highlighting to them the power of AI from<br />

an early age will <strong>on</strong>ly benefit them as they<br />

will have a l<strong>on</strong>ger time to cultivate a good<br />

understanding in the field. For all other<br />

students, that will eventually focus <strong>on</strong><br />

other professi<strong>on</strong>s they will also likely end<br />

up utilizing the power of AI, so learning<br />

about it from a young age will ultimately<br />

give them skills and knowledge so as<br />

to become competitive and rise to the<br />

challenges of the 2030 decade.<br />

Europe can become a leader in AI,<br />

10 years from now - so l<strong>on</strong>g that it starts<br />

creating the future leaders of the subject<br />

today, in schools. It follows that investing<br />

in this proposal will lead to further<br />

advancement of universities, state funded<br />

research programs and easier talent<br />

discovery by european companies. If we<br />

want more “unicorns” in Europe, we need<br />

bright young people that will have the<br />

visi<strong>on</strong> and the power to make european<br />

companies, global tech winners.<br />

Some people say access to capital is<br />

the key to win the tech race. I think the<br />

most valuable asset is human capital.<br />

Technology is built by humans. And if<br />

humans are intelligent enough to build<br />

artificially intelligent machines that could<br />

outsmart them, we owe it to our future to<br />

educate our kids and make them smarter<br />

than we are.<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

35


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

AI and Machine Learning in<br />

Digital Campaigning – will<br />

bots bring us closer than ever<br />

or will they ruin our system?<br />

By Hannes Kirchbaumer<br />

Hannes<br />

Kirchbaumer<br />

Founder and CEO of<br />

KIRCHBAUMER.COM,<br />

a digital marketing and<br />

political campaigning<br />

c<strong>on</strong>sulting agency<br />

based in Vienna<br />

A<br />

rtificial intelligence (AI) impacts numerous aspects of life, from smart<br />

devices helping out in homes, self-driving cars, to the way we c<strong>on</strong>sume<br />

informati<strong>on</strong>. With the ability to analyze data and learn from it, AI is<br />

revoluti<strong>on</strong>izing our world. Many industries have a high demand for AI capabilities<br />

including the medical field, banking and of course: marketing. With the help of<br />

very effective data analysis, combined with an ability to adapt to input, AI can<br />

identify marketing trends. Organizati<strong>on</strong>s, brands and political parties can now<br />

leverage AI to save time and resources through automated digital marketing<br />

services.<br />

Using statistical techniques, machine learning algorithms can easily identify<br />

patterns in data. By analyzing <strong>on</strong>line behavior of users which includes their<br />

news and retail c<strong>on</strong>sumpti<strong>on</strong> patterns, relati<strong>on</strong>ships and social media patterns,<br />

it is possible to create unique psychographic and behavioral user profiles. This<br />

makes targeted advertising campaigns possible that can be sent to each user<br />

based <strong>on</strong> their individual psychology. The more interacti<strong>on</strong> data is available, the<br />

better. It is all about sending the right informati<strong>on</strong> to the right pers<strong>on</strong> at the<br />

right time. This goal has been here for a l<strong>on</strong>g time and with the right data to be<br />

processed, it became reality.<br />

FIVE MAIN BENEFITS OF AI IN DIGITAL MARKETING<br />

1) MORE EFFECTIVENESS<br />

AI helps businesses remove the guesswork to create a more effective<br />

marketing strategy with data-driven analysis. Live dashboards and journey<br />

analysis indicate what works best and how users react to certain events.<br />

2) BETTER USER EXPERIENCE<br />

AI makes it possible to provide any audience with the right c<strong>on</strong>tent. This<br />

applies not <strong>on</strong>ly to websites, but also to newsletters and social media.<br />

3) HIGHER PRODUCTIVITY<br />

Automati<strong>on</strong> of repetitive tasks becomes possible, saving time and m<strong>on</strong>ey.<br />

Simultaneously, new resources are freeing up. Employees, who used to be<br />

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PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

occupied with those tasks, can now focus<br />

<strong>on</strong> even more important <strong>on</strong>es.<br />

4) UNDERSTANDING THE AUDIENCE<br />

With AI, data can be analyzed to<br />

predict behaviors and decisi<strong>on</strong> of any<br />

target user. The outcome can be used for<br />

more tests that will deliver new insights<br />

and live results.<br />

5) BETTER DECISIONS<br />

AI empowers decisi<strong>on</strong>-making and<br />

helps to create better-performing<br />

c<strong>on</strong>tent. It is now also possible to let AI do<br />

the creati<strong>on</strong> work as l<strong>on</strong>g as some basic<br />

informati<strong>on</strong> and graphics are provided.<br />

Often, the website c<strong>on</strong>tent might already<br />

be enough for AI to make some well and<br />

often high-performing ad creatives.<br />

AI IN POLITICAL CAMPAIGNS<br />

When working in the political<br />

campaigning field, the first topic in a<br />

discussi<strong>on</strong> about AI will often be the<br />

possible misuse of it. By knowing the<br />

profiles of the users/voters, AI can of<br />

course also be used to send pers<strong>on</strong>alized,<br />

political messages that are insincere and<br />

fake. C<strong>on</strong>tent that highlights a different<br />

side of an argument can be sent to<br />

potential voters and every voter gets a<br />

different versi<strong>on</strong> that is in line with their<br />

expectati<strong>on</strong>s. That helps the candidate<br />

in developing a general opini<strong>on</strong> that is<br />

in his or her favor.<br />

In the 2016 US presidential electi<strong>on</strong>s,<br />

it was found that automated social media<br />

bots were used to increase the Twitter<br />

traffic for pro-Trump hashtags.<br />

They had roughly double the activity<br />

of his rival, Hillary Clint<strong>on</strong>. On Facebook,<br />

Cambridge Analytica provided audience<br />

data that made super micro targeted<br />

campaigns possible and it was found<br />

that the way they had gathered data was<br />

against the policy.<br />

That did not benefit Facebook’s<br />

general image – naturally, they had to do<br />

something about it. Suddenly, targeting<br />

for political campaigns and other social<br />

issues was reduced significantly by the<br />

big players.<br />

But when checking whether<br />

audiences and targeting settings are<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

acceptable and in line with policy, it is<br />

again AI that is coming in. In the 2020 US<br />

presidential electi<strong>on</strong>s, it was also used to<br />

mark posts with a fact-checking warning.<br />

Another misuse of AI and machine<br />

learning is the development of so called<br />

“deepfakes”. It c<strong>on</strong>cerns audio or video<br />

c<strong>on</strong>tent generated by AI that shows<br />

some<strong>on</strong>e saying or doing something<br />

that was never said or d<strong>on</strong>e in reality.<br />

These kind of videos appear extremely<br />

authentic and can be used as a way of<br />

influencing people. Ir<strong>on</strong>ically, it might<br />

need AI again to detect this kind of<br />

c<strong>on</strong>tent.<br />

THE FUTURE OF AI IN DIGITAL<br />

MARKETING & CAMPAIGNING<br />

<strong>Artificial</strong> intelligence is an incredible<br />

technology that can work w<strong>on</strong>ders for any<br />

organizati<strong>on</strong>. Using AI digital marketing<br />

strategies will help deliver improved<br />

customer experience and market more<br />

effectively. AI digital marketing also<br />

changes the way we build websites and<br />

interact with customers.<br />

SHUTTERSTOCK<br />

But what must public and political<br />

organizati<strong>on</strong>s do to be able to use both<br />

the audience and creati<strong>on</strong> part in a good<br />

way?<br />

Everything comes down to collecting<br />

your own data, own AI and machine<br />

learning soluti<strong>on</strong>s and get in more direct<br />

c<strong>on</strong>tent with your users. It is still possible<br />

to gain first-party data with campaigns<br />

<strong>on</strong> the big networks. Exactly that data<br />

should be used to create a perfect<br />

database to work with.<br />

The demand of GDPR-compliant<br />

community-building services with an<br />

AI-based, smart marketing automati<strong>on</strong><br />

functi<strong>on</strong>ality are very high at the moment<br />

and I would recommend all kinds of<br />

organizati<strong>on</strong>s to find a way to build a<br />

so-called “client data platform”. With<br />

increasing restricti<strong>on</strong>s <strong>on</strong> third party<br />

data, it is an absolute obligati<strong>on</strong> to have<br />

your first party data in perfect c<strong>on</strong>diti<strong>on</strong>.<br />

It will help organizati<strong>on</strong>s not <strong>on</strong>ly reach<br />

their users more efficiently, but also give<br />

them valuable informati<strong>on</strong> they might<br />

not have expected.<br />

37


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

<strong>Artificial</strong> intelligence’s great impact<br />

<strong>on</strong> low and middle-skilled jobs<br />

By Sybrand Brekelmans & Georgios Petropoulos<br />

Sybrand<br />

Brekelmans<br />

& Georgios<br />

Petropoulos<br />

Sybrand Brekelmans:<br />

Research assistant at<br />

Bruegel<br />

Georgios Petropoulos:<br />

Marie Curie<br />

Skłodowska Research<br />

Fellow at MIT and<br />

Bruegel and postdoctoral<br />

fellow at the<br />

MIT Initiative <strong>on</strong> the<br />

Digital Ec<strong>on</strong>omy<br />

T<br />

he academic literature suggests<br />

that, in the past decades,<br />

technological progress has<br />

led to job polarisati<strong>on</strong> in European<br />

Uni<strong>on</strong> countries. While computer<br />

technologies and robots have<br />

replaced, to some extent, routine<br />

middle-skilled jobs such as machine<br />

operati<strong>on</strong>, c<strong>on</strong>structi<strong>on</strong> work or<br />

administrative work, they have also<br />

led to an increase in complementary,<br />

n<strong>on</strong>-routine high-skilled jobs (eg<br />

managers, professi<strong>on</strong>als) and in<br />

low-skilled jobs (eg agriculture,<br />

cleaning and pers<strong>on</strong>al care services).<br />

However, our new research suggests<br />

that the new technologies that have<br />

emerged since 2010 – artificial<br />

intelligence and machine learning –<br />

are set to change drastically the job<br />

landscape over the next few decades.<br />

These technologies are likely to have<br />

a deeper impact across a wider range<br />

of jobs and tasks, including possible<br />

destructi<strong>on</strong> of low-skilled jobs.<br />

<strong>Artificial</strong> intelligence (AI) systems<br />

are able to perform tasks that involve<br />

decisi<strong>on</strong>-making, therefore changing<br />

the impact of automati<strong>on</strong> <strong>on</strong> the<br />

workforce.<br />

AI-powered technologies can<br />

now retrieve informati<strong>on</strong>, coordinate<br />

logistics, handle inventories, prepare<br />

taxes, provide financial services,<br />

translate complex documents, write<br />

business reports, prepare legal briefs<br />

and diagnose diseases. Moreover,<br />

they are set to become much better<br />

at these tasks in the next few years<br />

thanks to machine learning (ML):<br />

computers fed by big data can learn,<br />

practice skills and ultimately improve<br />

their own performances and perform<br />

their assigned tasks more efficiently.<br />

Our new working paper evaluates<br />

the ‘probability of automati<strong>on</strong>’ for<br />

different jobs, using data from 24<br />

European countries.<br />

This probability is initially<br />

computed at the job task level and<br />

then aggregated at the occupati<strong>on</strong>al<br />

level (Table 1). Since each job<br />

c<strong>on</strong>sists of a variety of tasks, with<br />

different potential for automati<strong>on</strong>,<br />

the probability of automati<strong>on</strong> at the<br />

job level does not necessarily mean<br />

the destructi<strong>on</strong> of jobs, but rather<br />

whether automati<strong>on</strong> can significantly<br />

transform the nature of those jobs.<br />

We use this measure of<br />

automati<strong>on</strong> in an aggregate<br />

framework where jobs are grouped<br />

into three different categories of skill:<br />

low, middle and high-skilled jobs.<br />

Figure 1 shows the results.<br />

These results suggest that<br />

artificial intelligence and machine<br />

learning will have different impacts<br />

compared to computer and robotic<br />

technologies, which caused job<br />

polarisati<strong>on</strong> (drop in routine middleskilled<br />

jobs and increase in lowskilled<br />

jobs). In c<strong>on</strong>trast, AI is highly<br />

likely to significantly alter not <strong>on</strong>ly<br />

38 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Table 1: European jobs with the highest and lowest probabilities of automati<strong>on</strong><br />

Figure 1: Exposure to automati<strong>on</strong> of different skill groups<br />

middle-skilled jobs, but also low-skill employment. Moreover,<br />

while the high skilled are relatively less at risk from AI and<br />

ML-induced transformati<strong>on</strong>, its impact is still n<strong>on</strong>-negligible<br />

for these jobs.<br />

The results also suggest a future transformati<strong>on</strong> of work.<br />

In middle and low-skilled jobs, AI systems will complete the<br />

easily automated tasks while humans c<strong>on</strong>tinue to perform<br />

those that cannot be automated.<br />

A high probability of automati<strong>on</strong> may also be associated<br />

with the creati<strong>on</strong> of new tasks and jobs though the productivity<br />

gains from adopting AI technologies, but these jobs and tasks<br />

will most likely be high-skilled.<br />

The transformative nature of AI and ML requires proactive<br />

measures to re-design labour markets. The workforce needs<br />

to be prepared for the upcoming changes, while the efficiency<br />

gains from these technologies should be harnessed. Countries<br />

with high degrees of labour flexibility, high quality science<br />

educati<strong>on</strong> and less pervasive product market regulati<strong>on</strong>s tend<br />

to have higher skill-oriented job structures and are therefore<br />

less exposed to labour transformati<strong>on</strong> due to automati<strong>on</strong>.<br />

Brekelmans S., G. Petropoulos (2020), ‘<strong>Artificial</strong> intelligence’s great impact <strong>on</strong> low and middle-skilled jobs’, Bruegel Blog, 29 June, available<br />

at https://www.bruegel.org/2020/06/artificial-intelligences-great-impact-<strong>on</strong>-low-and-middle-skilled-jobs/<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | January 2021<br />

39


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

ISTOCK<br />

Global cooperati<strong>on</strong><br />

is the <strong>on</strong>ly way forward<br />

The ICT industry and its critical role<br />

The crackdowns felt<br />

across the industry<br />

Through my l<strong>on</strong>g career in the Informati<strong>on</strong><br />

and Communicati<strong>on</strong> Technology (ICT)<br />

industry, I have been lucky enough to be at<br />

the fr<strong>on</strong>t seat, watching as the world enters<br />

this ever-changing era of digitalisati<strong>on</strong>.<br />

Over the years, we have developed<br />

a unique ecosystem that enables<br />

interacti<strong>on</strong>s between services, systems,<br />

data, software, and people. In its very<br />

essence, the digital world is the pathway<br />

through which we c<strong>on</strong>nect, share, and<br />

transform together as a global community.<br />

We are in the midst of the Fourth Industrial<br />

Revoluti<strong>on</strong>, seeing our society transform,<br />

from innovative business models to the<br />

Internet of Things (IoT), e-Learning to the<br />

rise of remote working. We are all part of<br />

an interc<strong>on</strong>nected digital ecosystem and<br />

it must remain so if we are to succeed in<br />

tackling the world’s biggest challenges.<br />

Digital technologies are increasingly<br />

becoming the heart of the way we live<br />

and work. What’s less understood, but no<br />

less important, is that digital technologies<br />

are becoming essential to our future <strong>on</strong><br />

the Planet, its ecosystems, and inclusive<br />

ec<strong>on</strong>omic development. The way that we<br />

40 December 2020 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Luis Neves<br />

CΕΟ of the Global<br />

Enabling Sustainability<br />

Initiative (GeSI)<br />

<str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g> | December 2020<br />

use digital technologies will determine our<br />

future.<br />

Recent research by GeSI, c<strong>on</strong>ducted<br />

with the support of Deloitte, finds that the<br />

applicati<strong>on</strong> and use of digital technology will<br />

be essential to achieving the bold objectives<br />

set by the UN Sustainable Development<br />

Goals (SDGs). What’s particularly urgent is<br />

to mobilise the use of digital technologies to<br />

transiti<strong>on</strong> to a low carb<strong>on</strong> ec<strong>on</strong>omy that will<br />

mitigate the worst c<strong>on</strong>sequences of climate<br />

change. Digital technologies, GeSI’s research<br />

finds, have the unique capability to enable<br />

nati<strong>on</strong>s to decouple carb<strong>on</strong> emissi<strong>on</strong>s from<br />

ec<strong>on</strong>omic growth – enabling the world to<br />

raise the standard of living while slowing<br />

temperature increases.<br />

Yet just when the world’s governments<br />

need to be collaborating to promote global<br />

technology strategies for sustainability, we<br />

see the increase of techno-nati<strong>on</strong>alism.<br />

Around the world, countries are instituting<br />

destructive, zero-sum policies that are<br />

hampering access to and the applicati<strong>on</strong><br />

of technology that would help the world<br />

advance to achieve the SDGs.<br />

• The US and Japan are restricting<br />

Chinese made comp<strong>on</strong>ents that<br />

affect the progress of building 5G<br />

networks<br />

• China has retaliated by ordering its<br />

public instituti<strong>on</strong>s and government<br />

agencies to stop using foreign made<br />

computers and software<br />

• In Brussels, the EU has called for<br />

the creati<strong>on</strong> of a U.S.-EU Trans-<br />

Atlantic ec<strong>on</strong>omic model that block<br />

China’s attempts to influence global<br />

standards in 5G and other nextgenerati<strong>on</strong><br />

technologies.<br />

• Middle East countries face<br />

technological sancti<strong>on</strong>s<br />

• India has explored ways to<br />

nati<strong>on</strong>alize data.<br />

The list of examples goes <strong>on</strong>. Arguments<br />

abound regarding the importance of<br />

protecting nati<strong>on</strong>al security and ec<strong>on</strong>omic<br />

sovereignty. Yet the arguments overlook<br />

a larger, more urgent questi<strong>on</strong> regarding<br />

collective security.<br />

As it stands the situati<strong>on</strong> will inevitably<br />

lead to the fragmentati<strong>on</strong> of the global<br />

supply chain, decrease competiti<strong>on</strong> and<br />

increase prices for European c<strong>on</strong>sumers and<br />

manufacturers.<br />

We need a global effort to adopt cutting<br />

edge networks, super-fast processors, smart<br />

data analytic capabilities, etc. and apply<br />

them to the most pressing challenges that<br />

the world faces regarding climate change,<br />

biodiversity loss, water scarcity, poverty,<br />

health, and educati<strong>on</strong>, am<strong>on</strong>g others.<br />

The more techno-nati<strong>on</strong>alism and its<br />

bans, restricti<strong>on</strong>s, and crackdowns we see,<br />

the more the world will notice the effects<br />

of these acti<strong>on</strong>s which will be felt not <strong>on</strong>ly<br />

across industry but also society.<br />

Everything today depends <strong>on</strong> digital<br />

technologies. Digital technologies have<br />

been the engine of growth and prosperity.<br />

They keep us c<strong>on</strong>nected. They are at the<br />

centre of our global society as the COVID-19<br />

pandemic has shown. They are meant to be<br />

used for good, for peace, and development.<br />

Finally, they need to be accessible to all<br />

and universal. We need to do everything to<br />

ensure this Purpose is maintained.<br />

The path forward<br />

What are we as an industry to do? What<br />

are we as citizens, policy makers, to do? We<br />

must choose a smarter future. With our<br />

unparalleled capabilities and interc<strong>on</strong>nected<br />

systems, what we must do now is c<strong>on</strong>tinue<br />

down the path we have already set for<br />

ourselves: towards the achievement of the<br />

Sustainable Development Goals (SDGs).<br />

With the European Uni<strong>on</strong> ramping up its<br />

digital strategy, no company should be left<br />

behind so we can ensure competiti<strong>on</strong> and<br />

a fair level playing field aiming at a str<strong>on</strong>ger,<br />

smarter, more sustainable world. Global<br />

cooperati<strong>on</strong> is the <strong>on</strong>ly way forward.<br />

The challenges our society are currently<br />

facing and will c<strong>on</strong>tinue to face requires<br />

smart, innovative minds working together<br />

to find impactful soluti<strong>on</strong>s and fast. The ICT<br />

sector has a unique opportunity to rebuild a<br />

society that has been hampered by disease,<br />

politics, and war. Technology can accelerate<br />

acti<strong>on</strong>, but it requires a robust, shared<br />

ambiti<strong>on</strong>. Critical to a shared ambiti<strong>on</strong> is a<br />

str<strong>on</strong>g leadership to secure it. We must take<br />

the lead <strong>on</strong> global transformati<strong>on</strong>s to create a<br />

more prosperous, inclusive, and sustainable<br />

world with digital at its core. Failure is not an<br />

opti<strong>on</strong>. We can <strong>on</strong>ly succeed if we move<br />

forward together.<br />

41


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

The dynamics of data accumulati<strong>on</strong><br />

By Julia Anders<strong>on</strong><br />

Each new sunrise increases the certainty that the sun will rise<br />

tomorrow. The more we know about the past, the better we<br />

can predict the future. The same holds true in important AI and<br />

related machine learning (ML) applicati<strong>on</strong>s, where great volumes of<br />

data are needed to reach marketable levels of predictive accuracy.<br />

To maintain dynamism in ML markets, competiti<strong>on</strong> authorities<br />

must thus ensure that all participants access the data they need to<br />

compete viably. But how much is enough? Is more always better,<br />

or is there a point where additi<strong>on</strong>al observati<strong>on</strong>s do little to change<br />

predicti<strong>on</strong>s? Do we need to observe the sun rise a billi<strong>on</strong> times to<br />

know what will happen tomorrow?<br />

Training data is a scarce resource<br />

As detailed in a previous blog, machine learning (ML), a subfield<br />

of AI, is a predicti<strong>on</strong> technology that generates new informati<strong>on</strong><br />

(‘predicti<strong>on</strong>s’) based <strong>on</strong> existing informati<strong>on</strong> (‘data’). Notable ML<br />

applicati<strong>on</strong>s include automated driving, image recogniti<strong>on</strong>, language<br />

processing and search. [1]<br />

Like any product, ML models are <strong>on</strong>ly as good as the raw<br />

material. Access to adequate training data is critical for ML applicati<strong>on</strong><br />

vendors—which The Ec<strong>on</strong>omist went as far as to qualify as “the<br />

world’s most valuable resource”.[2]<br />

Where do ML providers and adopters obtain this valuable<br />

resource? Varian (2018) lists eight potential sources, including: as a byproduct<br />

of operati<strong>on</strong>s (e.g. generated from machines and sensors),<br />

web scraping, data vendors (e.g. Nielsen), cloud providers (e.g.<br />

Amaz<strong>on</strong>), public sector data, and offering a service (e.g. ReCAPTCHA).<br />

Yet, despite a variety of sources, training data can be an<br />

important bottleneck for businesses trying to develop or implement<br />

ML—and an <strong>on</strong>-going c<strong>on</strong>cern for ML models that require regular<br />

retraining. According to a 2019 European Commissi<strong>on</strong> report, access<br />

to adequate training data is a key limiting factor for the development<br />

of ML applicati<strong>on</strong>s.[3]<br />

One particular issue is that data must be ‘big’—a term that is<br />

often used to refer to datasets for which individual observati<strong>on</strong>s<br />

carry little informati<strong>on</strong>al c<strong>on</strong>tent, so that value is derived from having<br />

a large number of observati<strong>on</strong>s (Chakraborty, 2017). In many ML<br />

applicati<strong>on</strong>s, data volume greatly affects model performance.<br />

Image recogniti<strong>on</strong> algorithms, for instance, must be trained <strong>on</strong><br />

large volumes of data (Carrière-Swallow et al., 2019). The questi<strong>on</strong><br />

here is: How much (relevant) data is enough to make a valuable ML<br />

model?[4]<br />

Ec<strong>on</strong>omies of scale and the volume of data needed<br />

The relati<strong>on</strong>ship between data volume and returns from ML<br />

is a c<strong>on</strong>tentious topic. Hal Varian and Pat Bajari, chief ec<strong>on</strong>omists<br />

at Google and Amaz<strong>on</strong>, respectively, argue that model accuracy<br />

increases with data sample size, but at a decreasing rate.[5]<br />

Intuitively, in teaching me (or an algorithm) what Labradors looks<br />

like, the first ten Labradors are more informative than the following<br />

ten. In technical terms, data exhibits ‘decreasing returns to scale’.<br />

Figure 1. Decreasing returns to scale of Stanford Dogs data for<br />

ML accuracy Source: Varian (2018)<br />

If data exhibits decreasing returns to scale, then we might<br />

c<strong>on</strong>clude that firms <strong>on</strong>ly need to secure a large-enough lumpsum<br />

of data to compete viably. Ec<strong>on</strong>omists Ajay Agrawal,<br />

Joshua Gans, and Avi Goldfarb disagree.[7] Their argument<br />

runs as follows: even if data exhibits decreasing returns (as<br />

in Figure 1), a slight lead in data quantity may induce a slight<br />

lead in quality that attracts users. More users generate more<br />

data, which drives higher quality. This is the so-called ‘data<br />

feedback loop’ illustrated in Figure 2. Over time, a small initial<br />

data advantage can translate into a significant share of the user<br />

base and of the market. In the l<strong>on</strong>g run, this self-reinforcing<br />

dynamic can lead to market dominance.<br />

In essence, Agrawal et al. distinguish between technical returns<br />

to data (i.e. accuracy) and ec<strong>on</strong>omic returns to data (i.e. market<br />

shares), and argue that even if data exhibits decreasing returns in<br />

a technical sense (as in Figure 1), returns can be increasing in an<br />

ec<strong>on</strong>omic sense.<br />

42 January 2021 | <str<strong>on</strong>g>OUR</str<strong>on</strong>g> <str<strong>on</strong>g>WORLD</str<strong>on</strong>g>


PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

Figure 2. The data feedback loop<br />

Source: based <strong>on</strong> OECD (2016)<br />

One of the mechanisms underlying the data feedback loop<br />

relates to the increased granularity that comes with volume. Google<br />

and Microsoft’s differing views in the area of internet search ML<br />

illustrates this point.[8]<br />

Microsoft, in justifying a 10-year deal for Yahoo search in 2009,[9]<br />

has advanced that higher performance is a direct c<strong>on</strong>sequence of<br />

scale.[10] Following this argument, Google search algorithm is better<br />

than Yahoo’s because more people use Google. More people using<br />

Google means that Google can collects more data and provide better<br />

search results, attracting more users, and so <strong>on</strong>. This is the feedback<br />

loop in acti<strong>on</strong>.<br />

Google has expressed scepticism about Microsoft’s scale<br />

argument.[11] Yahoo’s billi<strong>on</strong>s of searches should be sufficient to<br />

compete effectively.[12] Yahoo’s inferior performance would reflect<br />

the lower quality of its algorithm,[13] rather than the amount of data<br />

it holds. To quote Google’s Varian: “it’s not quantity or quality of the<br />

ingredients that make a difference, it’s the recipes”.<br />

Microsoft has countered that its billi<strong>on</strong>s of searches are<br />

insufficient. Many queries are extremely rare and, for these queries,<br />

Google has more observati<strong>on</strong> points, simply because it holds more<br />

data. Google thus produces better results for rare queries.[14]<br />

Empirical work by Schaefler and al. (2018) vindicate Microsoft’s<br />

claims. Schaefler and al. (2018) examine the impact of additi<strong>on</strong>al<br />

user data <strong>on</strong> the quality of internet search results. They disentangle<br />

the effects of more data from the effect of better algorithms and<br />

find that both matter. In their oven, Varian’s analogy falls flat: both<br />

ingredients and recipe are critical to good cooking.<br />

The Google and Microsoft disagreement also exposes the<br />

str<strong>on</strong>g behavioural and structural assumpti<strong>on</strong>s that underlie the<br />

feedback loop argument. In the internet search case, for instance,<br />

the argument requires that (i) c<strong>on</strong>sumers can detect small quality<br />

differences, (ii) quality differences matters to users (or at least a few),<br />

and (iii) switching costs are sufficiently low. The same reas<strong>on</strong>ing<br />

should not be expected to hold, however, in all ML markets.<br />

In speech to text applicati<strong>on</strong>s, for instance, it is not clear that small<br />

quality differences are obvious to the user, or that they would matter<br />

enough to justify the potentially large costs of switching providers<br />

(e.g. learning to use a new applicati<strong>on</strong>). On the other extreme, some<br />

applicati<strong>on</strong> areas are very sensitive to quality differences. These are<br />

applicati<strong>on</strong>s where accuracy is a matter of life and death.[15] Who<br />

would accept a sec<strong>on</strong>d-best medical diagnostic?[16]<br />

No <strong>on</strong>e wants Dr Bing when Dr Google is down the<br />

corridor. For these applicati<strong>on</strong>s, returns to predicti<strong>on</strong><br />

quality may amount to the whole market, i.e. “the<br />

winner takes all”.<br />

A large share of the empirical work around<br />

returns to scale for data focuses <strong>on</strong> <strong>on</strong>e ML<br />

applicati<strong>on</strong>: internet search.[17] More research<br />

is needed to determine where the feedback loop<br />

argument holds, because the answer is likely to vary<br />

across different applicati<strong>on</strong> area.<br />

Ec<strong>on</strong>omies of scope and the volume of<br />

data needed<br />

Glen Weyl and Eric Posner present a different<br />

argument in the debate. In their 2018 book Radical<br />

Markets, the Microsoft ec<strong>on</strong>omist and University of<br />

Chicago law professor argue that the returns to data<br />

are increasing in scale, but with a twist.<br />

Decreasing returns to scale, they claim, <strong>on</strong>ly hold<br />

in pre-ML ‘standard’ statistical c<strong>on</strong>texts. Standard<br />

statistics addresses relatively simple problems (e.g.<br />

estimate a populati<strong>on</strong> average) for which rough<br />

Julia Anders<strong>on</strong><br />

Research Analyst,<br />

Bruegel<br />

estimates are sufficient:<br />

An entrepreneur who wants to open a wealth<br />

management firm in a neighbourhood wants to<br />

know whether the average income is $100,000 or<br />

$200,000 but doesn’t need to know that it is $201,000<br />

rather than $200,000.[18]<br />

ML tackles problems that are much more<br />

complex, according to Posner and Weyl. These<br />

new, harder tasks are more valuable than earlier,<br />

easier <strong>on</strong>es. They also call for more data, and more<br />

complex data. For these problems, the more the<br />

data, the better it can address these harder tasks.<br />

Therefore, and still following Posner and Weyl, the<br />

more the data, the more valuable it is.<br />

To illustrate the authors’ point, c<strong>on</strong>sider training<br />

an ML to recognise dogs in pictures. This model<br />

requires a certain quantity of data to produce<br />

accurate results. But, as illustrated in Figure 1,<br />

the value of additi<strong>on</strong>al data drops past a certain<br />

threshold. However, as the volume of data c<strong>on</strong>tinues<br />

to grow (and complexity al<strong>on</strong>g with it), the algorithm<br />

c<strong>on</strong>tinues to learn. At some point, it can perform<br />

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PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

an additi<strong>on</strong>al, more complex task, such as labelling objects in the<br />

photographs. Again, the value of additi<strong>on</strong>al data for the task of<br />

labelling objects flattens out past a certain threshold. Once again,<br />

as the volume of data c<strong>on</strong>tinues to grow, the algorithm c<strong>on</strong>tinues<br />

to learn. At some point, it can perform an additi<strong>on</strong>al, even more<br />

difficult task, such as understanding the nature of the acti<strong>on</strong>s in<br />

the photographs.<br />

Therefore, the value of data grows to the extent that harder<br />

problems need more data. Weyl and Posner’s argument is, implicitly,<br />

that data exhibits ec<strong>on</strong>omies of scope. As Figure 3 illustrates, we<br />

end up with a picture that challenges Varian’s decreasing returns to<br />

scale hypothesis. Weyl and Posner note that the value of data may<br />

not increase forever: we could see a future where ML has “learned<br />

everything”. But until then, they claim, returns to the volume of data<br />

are increasing.<br />

Figure 3. Value of data as a functi<strong>on</strong> of the number of<br />

observati<strong>on</strong>s in a typical ML<br />

Source: Weyl and Posner (2018)<br />

Data as a barrier to entry<br />

Ec<strong>on</strong>omic theory teaches us that, where there are increasing<br />

returns to scale, m<strong>on</strong>opolies naturally emerge—the largest firm<br />

being the most ec<strong>on</strong>omically efficient.[19] Likewise, where they<br />

materialise, increasing returns to scale to data could be expected to<br />

work to c<strong>on</strong>centrate ec<strong>on</strong>omic gains in the hands of data-rich firms.<br />

M<strong>on</strong>opolisati<strong>on</strong>, however, is not necessarily syn<strong>on</strong>ymous with<br />

m<strong>on</strong>opolistic behaviour—i.e. supra-competitive pricing, reduced<br />

quality, and/or hampered innovati<strong>on</strong>. So l<strong>on</strong>g as the market leaders<br />

are challenged by the prospect of competitive entry by other firms,<br />

m<strong>on</strong>opolised markets can be competitive.<br />

Increasing returns to scale and scope for data, however, might<br />

work in some cases to entrench the incumbent’s positi<strong>on</strong> by creating<br />

very high barriers to entry for prospective entrants. This could be a<br />

problem in markets where there is no substitute for a dataset that<br />

is essential, i.e. where there is <strong>on</strong>ly <strong>on</strong>e dataset and it cannot be<br />

replicated, dispensed or purchased.[20] As US FTC Commissi<strong>on</strong>er<br />

Terrell McSweeny has noted, “it may be that an incumbent has<br />

significant advantages over new entrants when a firm has a database<br />

that would be difficult, costly, or time-c<strong>on</strong>suming for a new firm to<br />

match or replicate.”[21]<br />

Incumbency advantage could be particularly pr<strong>on</strong>ounced in the<br />

digital space. Leading ML users were <strong>on</strong>ce leading data collectors,<br />

but increasingly are leading ML providers. Amaz<strong>on</strong>, for instance,<br />

originally sold books as a way to gather pers<strong>on</strong>al data <strong>on</strong> affluent,<br />

educated shoppers (Ezrachi et al. 2016). It is now a leading provider<br />

of ML services <strong>on</strong> the cloud.<br />

‘Data scarcity’ can seem oxymor<strong>on</strong>ic. The world overflows with<br />

informati<strong>on</strong>—right up to toilet seats, the new data hotbed. The<br />

volume of data created and copied each year is expected to reach<br />

44 x 1021 bytes in 2020 — 40 times more bytes than there are stars in<br />

the observable universe.[22] Yet the vast amounts of data collected<br />

<strong>on</strong>line form unique sets of behavioural data that may be harder and<br />

harder to replicate in light of the self-reinforcing dynamics described<br />

above.<br />

Why not let prospective entrants buy the necessary data in<br />

<strong>on</strong>e of the many dedicated marketplaces (such as datapace.io)? A<br />

c<strong>on</strong>cern is that data incumbents have str<strong>on</strong>g reas<strong>on</strong>s not to sell their<br />

data: increasing ec<strong>on</strong>omic returns to data tend to create perverse<br />

incentives for firms to establish a data advantage and erect barriers<br />

to entry thereafter (Cockburn et al., 2018). Incumbents might prefer<br />

hoarding the data they collect in order to, first, gain an advantage<br />

over their competitors and, later, curtail market entry (J<strong>on</strong>es et al.,<br />

2018).<br />

Two factors that could tend to compound these<br />

challenges.<br />

First, as previously noted, data-rich firms could benefit not <strong>on</strong>ly<br />

from ec<strong>on</strong>omies of scale, but also from ec<strong>on</strong>omies of scope. Data<br />

acquired for a particular purpose may be valuable in other c<strong>on</strong>texts,<br />

granting incumbent firms an advantage over new entrants in<br />

adjacent markets (Goldfarb et al., 2018). For instance, data collected<br />

in the c<strong>on</strong>text of search queries can be used to inform a shoppingrecommendati<strong>on</strong><br />

algorithm. Ec<strong>on</strong>omies of scope could leave little<br />

room for potential entrants looking to grow outside the incumbents’<br />

market segments.<br />

Sec<strong>on</strong>d, even if a firm successfully enters a new ML applicati<strong>on</strong><br />

market, incumbents may be in a positi<strong>on</strong> to use their rich data to<br />

detect the competitive threat, and acquire the new entrant firm<br />

before the incumbent’s positi<strong>on</strong> is challenged (so-called ‘killer<br />

acquisiti<strong>on</strong>s’).<br />

Implicati<strong>on</strong>s for competiti<strong>on</strong> policy[23]<br />

Absent interventi<strong>on</strong>, a possible market outcome could be high<br />

c<strong>on</strong>centrati<strong>on</strong> and low c<strong>on</strong>testability in data-reliant markets. This<br />

implies the need for competiti<strong>on</strong> policy scrutiny around data access.<br />

Should unique and n<strong>on</strong>-substitutable datasets be c<strong>on</strong>sidered an<br />

‘essential facility’, <strong>on</strong> par with local loops for fixed teleph<strong>on</strong>y?<br />

Forced sharing can create inefficiencies, e.g. in the form investment<br />

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PERSPECTIVES ON ARTIFICIAL INTELLIGENCE<br />

disincentives, but is well established EU policy in many of the network industries. Under what c<strong>on</strong>diti<strong>on</strong>s would the benefits of forced<br />

sharing outweigh the costs?<br />

The emergence of ML as a general-purpose technology raises difficult empirical and normative questi<strong>on</strong>s. Does the relati<strong>on</strong>ship between<br />

data accumulati<strong>on</strong> and ec<strong>on</strong>omic returns give data-rich incumbents a significant and self-reinforcing advantage? Are competiti<strong>on</strong> authorities<br />

equipped to discern and analyse data-driven m<strong>on</strong>opolistic returns? These questi<strong>on</strong>s are high <strong>on</strong> the new European Commissi<strong>on</strong>’s agenda,[24]<br />

and for good reas<strong>on</strong>s. M<strong>on</strong>opolistic behaviour by ML providers could slow the adopti<strong>on</strong> of technology critical for EU competitiveness,<br />

especially hitting those smaller firms that lack the knowledge and resources to build alternative capacity in-house. If technological revoluti<strong>on</strong>s<br />

are distributi<strong>on</strong>al earthquakes, competiti<strong>on</strong> authorities should work to ensure that every<strong>on</strong>e lands <strong>on</strong> their feet.<br />

[1] This post focuses <strong>on</strong> ML applicati<strong>on</strong>s.<br />

[2] See https://medium.ec<strong>on</strong>omist.com/will-big-data-create-a-new-untouchable-business-elite-8dc23bcaa7cb<br />

[3] DG COMP 2019, citing https://medium.com/machine-intelligence-report/data-not-algorithms-is-key-to-machine-learning-success-69c6c4b79f33, https://www.<br />

edge.org/resp<strong>on</strong>se-detail/26587, and http://www.spacemachine.net/views/2016/3/datasets-over-algorithms.<br />

[4] While this post focuses <strong>on</strong> issues pertaining to the volume of data, other characteristics of data are just as important for generating value. These include the<br />

other so-called ‘4Vs’ of data: volume, but also velocity (i.e. frequency), variety (e.g. administrative data, social media data, pictures, etc), and veracity (i.e. representative<br />

of the target populati<strong>on</strong>, free of bias, etc). For a firm to have a competitive advantage over these other characteristics can also generate important ec<strong>on</strong>omic benefits.<br />

For the purpose of this blog, I note that securing a sufficient volume of data appears to be necessary but not sufficient to having a competitive AI/ML business.<br />

[5] Varian (2018) and Bajari et al. (2018)<br />

[6] In particular, Bajari et al. (2018) find that the length of histories is robustly helpful in improving the demand forecast quality, but at a diminishing rate; whereas<br />

the number of products in the same category is not (with a few excepti<strong>on</strong>s where it exhibits diminishing returns to scale).<br />

[7] Agrawal, Ajay, Joshua Gans, and Avi Goldfarb. 2018a. Predicti<strong>on</strong> Machines: The Simple Ec<strong>on</strong>omics of <strong>Artificial</strong> <strong>Intelligence</strong>. Cambridge, MA: Harvard Business<br />

Review Press.<br />

[8] As related in Goldfarb et al. (2018)<br />

[9] See the deal’s press release: https://news.microsoft.com/2009/07/29/microsoft-yahoo-change-search-landscape/<br />

[10] See https://www.cnet.com/news/googles-varian-search-scale-is-bogus/<br />

[11] See Hal Varian in a CNET interview: “the scale arguments are pretty bogus in our view” (https://www.cnet.com/news/googles-varian-search-scale-is-bogus/)<br />

[12] “the amount of traffic that Yahoo, say, has now is about what Google had two years ago” and “when we do improvements at Google, everything we do<br />

essentially is tested <strong>on</strong> a 1 percent or 0.5 percent experiment to see whether it’s really offering an improvement. So, if you’re half the size, well, you run a 2 percent<br />

experiment.” Source: ibid<br />

[13] i.e. in performing tasks such as crawling, index, or ranking.<br />

[14] The European Commissi<strong>on</strong>’s DG COMP made similar claims in the c<strong>on</strong>text of the Google Shopping case. DG COMP claimed that general search service has<br />

to receive at least a certain minimum volume of queries in order to improve the relevance of its results for uncomm<strong>on</strong> queries because users evaluate the relevance<br />

of a general search service <strong>on</strong> the basis of both comm<strong>on</strong> and uncomm<strong>on</strong> queries. See para. 288 of the EC decisi<strong>on</strong> (https://ec.europa.eu/competiti<strong>on</strong>/antitrust/cases/<br />

dec_docs/39740/39740_14996_3.pdf)<br />

[15] Cockburn et al. (2019).<br />

[16] An podcast episode from the Ec<strong>on</strong>omist brings this point to life (https://www.ec<strong>on</strong>omist.com/podcasts/2019/10/09/the-promise-and-peril-of-ai)<br />

[17] See Schaefler and al. (2018): “In perhaps no other market has the questi<strong>on</strong> of the role of data stirred such a vivid discussi<strong>on</strong> am<strong>on</strong>g industry participants,<br />

academic experts, and policy advocates than in general internet search.”<br />

[18] Glen Weyl and Eric Posner, 2018. Radical Markets<br />

[19] https://cs.stanford.edu/people/eroberts/cs181/projects/1997-98/microsoft-vs-doj/ec<strong>on</strong>omics/returns.html<br />

[20] See Calvano et al. (2020) for a survey of the literature around these issues in digital markets.<br />

[21] Commissi<strong>on</strong>er Terrell McSweeny, Opening Remarks for a Panel Discussi<strong>on</strong>, “Why Regulate Online Platforms?: Transparency, Fairness, Competiti<strong>on</strong>, or<br />

Innovati<strong>on</strong>?” at the CRA C<strong>on</strong>ference in Brussels, Belgium, at 5 (Dec. 9, 2015), https://www.ftc.gov/system/files/documents/public_statements/903953/mcsweeny_-_<br />

cra_c<strong>on</strong>ference_remarks_9-12-15.pdf.<br />

[22] includes data generated <strong>on</strong>line and by IoT and c<strong>on</strong>nected devices. Source: Word Ec<strong>on</strong>omic Forum citing Rac<strong>on</strong>teur (https://www.weforum.org/agenda/2019/04/<br />

how-much-data-is-generated-each-day-cf4bddf29f/)<br />

[23] Note that a range of issues lie at the intersecti<strong>on</strong> of privacy and competiti<strong>on</strong>, including data ownership, reuse, transparency, sharing. These issues are bey<strong>on</strong>d<br />

the score of this post and will not be explored here.<br />

[24] See the missi<strong>on</strong> statement of European Commissi<strong>on</strong> President Ursula v<strong>on</strong> der Leyen, which instructs Margarethe Vestager: “In the first 100 days of our<br />

mandate, you will coordinate the work <strong>on</strong> a European approach <strong>on</strong> artificial intelligence, including its human and ethical implicati<strong>on</strong>s. This should also look at how<br />

we can use and share n<strong>on</strong>-pers<strong>on</strong>alised big data to develop new technologies and business models that create wealth for our societies and our businesses.” (https://<br />

ec.europa.eu/commissi<strong>on</strong>/sites/beta-political/files/missi<strong>on</strong>-letter-margrethe-vestager_2019_en.pdf)<br />

Anders<strong>on</strong>, J. (2020), ‘The dynamics of data accumulati<strong>on</strong>’, Bruegel Blog, 11 February.<br />

https://bruegel.org/2020/02/the-dynamics-of-data-accumulati<strong>on</strong>/<br />

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