Countries around the world are vastly increasing their budgets for AI, and with good reason. Just look at Gartner’s Hype Cycle released yesterday to see how important the technology is expected to be over the next decade.

Russian president Vladimir Putin famously said back in 2017 that the nation which leads in AI “will become the ruler of the world”. Putin said that AI offers unprecedented power, including military power, to any government that leads in the field.

China, the third global superpower, has also embarked on a major national AI strategy. In July 2017, The State Council of China released the “New Generation Artificial Intelligence Development Plan” to build a domestic AI industry worth around $150 billion over the next few years and to become the leading AI power by 2030.

Naturally, the US isn’t going to give that top podium spot to China without a fight.

The White House has proposed (PDF) a 30 percent hike in spending on AI and quantum computing. Around $1.5 billion would be allocated to AI funding and $699 million to quantum technology.

According to a report published by US national security think tank Center for a New American Security (CNAS), Chinese officials see an AI ‘arms race’ as a threat to global peace.

The fear of the CNAS is that integrating AI into military resources and communications may breach current international norms and lead to conflict-by-accident.

China and the US have been vying to become the top destination for AI investments. Figures published by ABI Research at the end of last year suggested that the US reclaimed the top spot for AI investments back from China, which overtook the Americans the year prior. ABI expects the US to reach a 70 percent share of global AI investments.

Lian Jye Su, Principal Analyst at ABI Research, said: 

“The United States is reaping the rewards from its diversified AI investment strategy. 

Top AI startups in the United States come from various sectors, including self-driving cars, industrial manufacturing, robotics process automation, data analytics, and cybersecurity.”

The UK, unable to match the levels of funding allocated to AI research as the likes of the US and China, is taking a different approach.

An index compiled by Oxford Insights last year ranked the UK number one for AI readiness in Europe and only second on the world stage behind Singapore. The US is in fourth place, while China only just makes the top 20.

The UK has focused on AI policy and harnessing the talent from its world-leading universities to ensure the country is ready to embrace the technology’s opportunities.

A dedicated AI council in the UK features:

• Ocado’s Chief Technology Officer, Paul Clarke
• Dame Patricia Hodgson, Board Member of the Centre for Data Ethics and Innovation 
• The Alan Turing Institute Chief Executive, Professor Adrian Smith
• AI for good founder Kriti Sharma
• UKRI chief executive Mark Walport
• Founding Director of the Edinburgh Centre for Robotics, Professor David Lane

British Digital Secretary Jeremy Wright stated: “Britain is already a leading authority in AI. We are home to some of the world’s finest academic institutions, landing record levels of investment to the sector, and attracting the best global tech talent. But we must not be complacent.”

Growing cooperation between the UK and US in a number of technological endeavours could help to harness the strengths of both nations if similarly applied to AI, helping to maintain the countries’ leaderships in the field.

(Photo by Louis Velazquez on Unsplash)

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While the news has gone somewhat under the radar given recent events, the Americans are concerned that overregulation may cause Western nations to fall behind the rest of the world.

In a statement released by the Office of Science and Technology Policy, the White House wrote:

“Europe and our allies should avoid heavy handed innovation-killing models, and instead consider a similar regulatory approach.

The best way to counter authoritarian uses of AI is to make sure America and our international partners remain the global hubs of innovation, shaping the evolution of technology in a manner consistent with our common values.”

The UK is expected to retain its lead as the European hub for AI innovation with vast amounts of private and public sector investment, successful companies like DeepMind, and world class universities helping to address the global talent shortage. In Oxford Insights’ 2017 Government AI Readiness Index, the UK ranked number one due to areas such as digital skills training and data quality. The Index considers public service reform, economy and skills, and digital infrastructure.

Despite its European AI leadership, the UK would struggle to match the levels of funding afforded to firms residing in superpowers like the US and China. Many experts have suggested the UK should instead focus on leading in the ethical integration of AI and developing sensible regulations, an area it has much experience in.

Here’s a timeline of some recent work from the UK government towards this goal:

• September 2016 – the House of Commons Science and Technology Committee published a 44-page report on “Robotics and Artificial Intelligence” which investigates the economic and social implications of employment changes, ethical and legal issues around safety, verification, bias, privacy, and accountability; and strategies to enhance research, funding, and innovation
• January 2017 – an All Party Parliamentary Group on Artificial Intelligence (APPG AI) was established to address ethical issues, social impact, industry norms, and regulatory options for AI in parliament.
• June 2017 – parliament established the Select Committee on AI to further consider the economic, ethical and social implications of advances in artificial intelligence, and to make recommendations. All written and oral evidence received by the committee can be seen here.
• April 2018 – the aforementioned committee published a 183-page report, “AI in the UK: ready, willing and able?” which considers AI development and governance in the UK. It acknowledges that the UK cannot compete with the US or China in terms of funding or people but suggests the country may have a competitive advantage in considering the ethics of AI.
• September 2018 – the UK government launched an experiment with the World Economic Forum to develop procurement policies for AI. The partnership will bring together diverse stakeholders to collectively develop guidelines to capitalise on governments’ buying power to support the responsible deployment and design of AI technologies.

Western nations are seen as being at somewhat of a disadvantage due to sensitivities around privacy. EU nations, in particular, have strict data collection regulations such as GDPR which limits the amount of data researchers can collect to train AIs.

“Very often we hear ‘Where are the British and European Googles and Facebooks?’ Well, it’s because of barriers like this which stop organisations like that being possible to grow and develop,” said Peter Wright, solicitor and managing director of Digital Law UK.

Dependent on the UK’s future trade arrangement with the EU, it could, of course, decide to chart its own regulatory path following Brexit.

Speaking to reporters in a call, US CTO Michael Kratsios said: “Pre-emptive and burdensome regulation does not only stifle economic innovation and growth, but also global competitiveness amid the rise of authoritarian governments that have no qualms with AI being used to track, surveil, and imprison their own people.”

In the same call, US deputy CTO Lynne Parker commented: “As countries around the world grapple with similar questions about the appropriate regulation of AI, the US AI regulatory principles demonstrate that America is leading the way to shape the evolution in a way that reflects our values of freedom, human rights, and civil liberties.

“The new European Commission has said they intend to release an AI regulatory document in the coming months. After a productive meeting with Commissioner Vestager in November, we encourage Europe to use the US AI principles as a framework. The best way to counter authoritarian uses of AI is to make America and our national partners remain the global hub of innovation, advancing our common values.”

A similar regulation to GDPR in California called CCPA was also signed into law in June 2018. “I think the examples in the US today at state and local level are examples of overregulation which you want to avoid on the national level,” said a government official.

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The executive order titled ‘Maintaining American Leadership in Artificial Intelligence’ claims to be guided by five principles:

1. Driving technological breakthroughs.
2. Leading in developing standards while reducing barriers preventing safe AI testing and deployment.
3. Training Americans with AI-related skills.
4. Fostering trust in AI technologies and protecting civil liberties.
5. Promoting global cooperation which supports American AI research and development.

Each of the principles are important and welcome, but the glaring omission is details are vague about how funding will be allocated to achieve them.

In comparison, other nations – including China, the UK, Canada, and France – have made detailed plans with significant funding to develop and benefit from AI in the coming years.

Prior to his resignation as US Secretary of Defense, General Editor Mattis implored the president to create a national strategy for AI. With his defense background, Mattis was concerned the US is not keeping pace with the likes of China.

Speaking to Bloomberg, Senator Mark Warner of Virginia praised several aspects of the executive order but warned “the tone of this executive order reflects a laissez-faire approach to AI development that I worry will have the US repeating the mistakes it has made in treating digital technologies as inherently positive forces, with insufficient consideration paid to their misapplication.”

Experts have noted if $5 billion is being allocated for a border wall, then money should be made available for the more pressing need of ensuring the US leads in the industries of the future.

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In an email to The Hill, an official wrote:

“Within the coming weeks, we could expect to see action designed to preserve American [research and development] leadership in artificial intelligence, 5G, and the first deliverables from the National Quantum Initiative Act.”

The ‘National Quantum Initiative Act’ is a law passed by the previous Congress that was intended to keep pace with China in vital new technologies.

During a State of the Union address on Tuesday, President Donald Trump discussed investing in what he called “industries of the future”.

The Wall Street Journal reported President Trump is expected to issue executive orders to redirect government resources into boosting AI and 5G development.

China AI Race

According to a report published by US national security think tank Center for a New American Security (CNAS), Chinese officials see an AI ‘arms race’ as a threat to global peace.

Their fear is the integration of AI into military resources and communications may breach current international norms and lead to conflict-by-accident.

One such example is the use of drones. Without the risk of human casualties, militaries are more likely to deploy them into contested airspace while opponents are more likely to shoot them down.

Establishing international norms around the use of automated systems needs to be a priority to avoid potential disaster. A simple race to be the best could be dangerous. Firms such as Microsoft have even begun warning investors of potential issues during AI development that ‘may result in reputational harm’.

The US and China will need to set aside their differences and increase cooperation in such matters. Both have a lot to gain; the US has a lead in chip technology, whereas China has masses of data for training AI.

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Some of the world’s greatest minds have expressed concern about the development of AI without regulations — including the likes of Elon Musk, and the late Stephen Hawking.

Musk famously said unregulated AI could post “the biggest risk we face as a civilisation”, while Hawking similarly warned “the development of full artificial intelligence could spell the end of the human race.”

The announcement that developers will be free to experiment with AI as they see fit was made during a meeting with representatives of 40 companies including Google, Facebook, and Intel.

Strict regulations can stifle innovation, and the U.S has made clear it wants to emerge a world leader in the AI race.

Western nations are often seen as somewhat at a disadvantage to Eastern countries like China, not because they have less talent, but citizens are more wary about data collection and their privacy in general. However, there’s a strong argument to be made for striking a balance.

Making the announcement, White House Science Advisor Michael Kratsios noted the government did not stand in the way of Alexander Graham Bell or the Wright brothers when they invented the telephone and aeroplane. Of course, telephones and aeroplanes weren’t designed with the ultimate goal of becoming self-aware and able to make automated decisions.

Both telephones and aeroplanes, like many technological advancements, have been used for military applications. However, human operators have ultimately always made the decisions. AI could be used to automatically launch a nuclear missile if left unchecked.

Recent AI stories have some people unnerved. A self-driving car from Uber malfunctioned and killed a pedestrian. At Google I/O, the company’s AI called a hair salon and the receptionist had no idea they were not speaking to a human.

People not feeling comfortable with AI developments is more likely to stifle innovation than balanced regulations.

What are your thoughts on the White House’s approach to AI regulation?

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