America's Uneven Approach to AI and Its Consequences

Home , Michael Kratsios

Institute for International Economic Policy Working Paper Series Elliott School of International Affairs The George Washington University

America’s uneven approach to AI and its consequences IIEP-WP-2020-7

Susan A. Aaronson George Washington University

April 2020

Institute for International Economic Policy 1957 E St. NW, Suite 502 Voice: (202) 994-5320 Fax: (202) 994-5477 Email: [email protected] Web: iiep.gwu.edu 8 America’s uneven approach to AI and its consequences by Susan Ariel Aaronson

A man looks at a demonstration of human motion analysis software at the stall of the artificial intelligence solutions maker Horizon Robot- ics during the Security China 2018 exhibition on public safety and security in Beijing, China, October 24, 2018. (REUTERS/THOMAS PETER)

he world’s oceans are in trouble. Global warming is data and artificial intelligence (AI) to analyze the move- causing sea levels to rise and reducing the supply of ments of vessels and compare their activities to historical food in the oceans. The ecological balance of the ocean patterns. The NGO can thus identify damaging behavior Thas been disturbed by invasive species and cholera. Many pes- such as overfishing. ticides and nutrients used in agriculture end up in the coastal waters, resulting in oxygen depletion that kills marine plants and shellfish. Meanwhile the supply of fish is declining due SUSAN ARIEL AARONSON is Research Professor of In- ternational Affairs and Director of the Digital Trade and to overfishing. Yet to flourish, humankind requires healthy Data Governance Hub. Aaronson conceived of and di- oceans; the oceans generate half of the oxygen we breathe, rects the Hub, which aims to educate policymakers, the and, at any given moment, they contain more than 97% of the press and the public about domestic and international data world’s water. Oceans provide at least a sixth of the animal governance issues from digital trade to public data gov- protein people eat. Living oceans absorb carbon dioxide from ernance. Aaronson is also a Cross-Disciplinary Fellow at GWU and a Senior Fellow at the think tank Center for the atmosphere and reduce climate change impacts. International Governance Innovation (GIGI) in Cana- Many civil society groups (NGOs) are trying to protect da. Aaronson’s research focuses on data governance and this shared resource. As example, OceanMind uses satellite trade, human rights, and governance of new technologies.

87 8 GREAT DECISIONS  2020 The decline of the world’s oceans is are calling for ethical AI, internation- share of the global market for AI servic- what scholars call a wicked problem— ally shared AI research, an internation- es. Moreover, if integrated properly, AI one so complex that it will require ally accepted system of norms to gov- would not only benefit the U.S. econo- innovative, cost effective, and global ern both data and AI, and the adoption my but also government operations and, solutions. Many executives, business of policies to discourage unethical and thereby, citizen/taxpayer welfare. leaders, and policymakers, among oth- anti-competitive behaviour by firms But the U.S. is sending mixed sig- ers, hope that AI such as that utilized providing/using AI services. Mean- nals about how it views AI as well as by OceanMind could provide insights while, governments such as India and its willingness to work with other states and, ultimately, solutions to such dif- South Africa are less willing to share to govern AI. American policymakers ficult problems. their citizens’ data until they firm up recognize that AI is a general purpose One can describe AI as a “global strategies to utilize and govern data. As technology—one that can contribute public good” because of its potential to example, in March 2019, India issued to productivity and economic growth help humankind address such problems. a draft national e-commerce policy that in many other sectors. As example, Lt. Global public goods are goods with ben- said that India should be the prime ben- General Jack Shanahan, who directs the efits and/or costs that potentially extend eficiary of the data of Indians. These Joint AI Center at the U.S. Department to all countries, people, and generations. national perspectives make it hard to of Defense noted, “A.I. is an enabler, Although most AI is provided by private find a unified approach to developing much more like electricity than a gad- firms, market mechanisms alone cannot and governing AI. get, a widget or a weapons system.” distribute AI (or AI capacity) equally The U.S. should play a major role in General purpose technologies tend throughout the world. AI is far from a encouraging international development to yield economic and social turbu- perfect technology: current variants of and dissemination of AI because it has lence, as society and jobs adapt to their AI can be biased or incorrect. Moreover, so much at stake: it holds the largest direct and indirect effects on employ- humans may become too trusting of AI. ment, on society, and on democracy. Given these problems, AI is most likely These technologies often have social, to meet its potential as a public good if Table 1 political and economic spillovers that data is as diverse and correct as possible, G-20 AI plans transcend borders. Accordingly, na- and if researchers from around the world as of August 2019 tions must cooperate to address these compete to develop and produce to AI. effects. As of October 2019, some 30 indus- Argentina No strategy On one hand, the U.S. has cooperated trialized and middle-income countries Australia No strategy with other countries in building AI. In have developed plans, incentives, and Brazil No strategy its 2017 National Security Strategy, the policies to stimulate national, rather Trump administration promised, “We Canada 2017 than international, AI research and will nurture a healthy innovation econ- adoption. In general these countries China 2017 omy that collaborates with allies.” On have firms developing AI systems as France 2018 the other hand, the Trump administra- well as rules governing the use of some Germany 2019 tion has also made it clear that it intends types of data such as personal data. to develop strategies that will allow India 2018 (See Table 1) But most countries are the U.S. economy to dominate global in the early stages of learning how to Indonesia No strategy AI markets. In the same National Se- govern data, let alone data-driven tech- Italy 2018 curity Strategy cited above, the Trump

nologies. Nonetheless, the people of Japan 2017 administration stated that, “To maintain the world won’t be able to reap the ben- our competitive advantage, the United Mexico 2018 efits of AI unless policymakers work at States will prioritize emerging technol- the national and international levels to Rep. of Korea 2017 ogies critical to economic growth and create an effective enabling and regula- South Africa No strategy security such as data science, encryp- tory environment for AI. Russia No strategy tion, autonomous technologies…and ar- Nations differ as to what an effec- tificial intelligence. Moreover, because Saudi Arabia No strategy tive enabling environment should in- AI is an essential component of tools clude, but in general, Western nations Turkey No strategy such as drones and robotics relied upon UK 2018 by the U.S. military, U.S. policymak- Before you read, download the companion U.S. 2019 ers have concluded that the U.S. must that includes definitions, a guide maintain a competitive edge in AI for Glossary EU 2018 ! to acronyms and abbreviations used in the ar- national security reasons. As a result, ticle, and other material. Go to www.great the Trump administration has taken a SOURCE: THOMAS STRUETT, DIGITAL TRADE AND DATA GOVER- decisions.org and select a topic in the NANCE HUB, GWU nationalistic, protectionist, and insular Resources section on the right-hand side approach to AI. It has proposed export of the page. 88 ARTIFICIAL INTELLIGENCE 8 controls on AI, dramatically limited discriminatory, unethical, or mislead- nurture data-driven firms. Most of the work and educational visas, and alien- ing results. firms transitioning to this new data- ated close scientific partners such as Because training data must be driven economy are in middle-income Canada, France, and Japan. With these broad, high-quality, and correct, most and wealthy countries. While there is policies, the U.S. could slow the prog- AI firms require lots of data. And be- no clear data on firms developing and ress of AI as a tool to address some of cause these applications require lots selling AI services, most of these firms the world’s problems. of data – and that demand may change have operations in a few nations (Aus- If policymakers want American over time as applications and training tralia, Canada, China, France, Ger- AI to be effective, rooted in trust, and strategies evolve – no nation alone can many, India, Israel, the U.S.). These produced and utilized internationally, govern AI, or any other data driven sec- nations have excellent universities, they should think about AI as a global tor. Policymakers will need to develop significant AI expertise, and access to public good. The Trump administration internationally accepted, interoperable a broad and growing supply of data to has put forward an approach to AI with principles, rules, and strategies to gov- consistently improve AI. some thoughtful components, but its ern AI. Most have focused on using Moreover, according to Jack Clark, approach could also undermine AI be- trade agreements to advance the free Policy Director for Open AI, many types cause it reduces the openness needed to flow of data and to create large pools of AI are still in an early phase of de- attract the best researchers and produce or sources of data. velopment. These relatively early-stage the most effective AI systems. But not every AI firm or government AI systems have achieved good enough has access to lots of data because the results to inspire a large number of ac- Definitions data-driven economy is built on infor- tors (business and government) to in- and consequences mation asymmetries. Firms that have vest. However, these early-stage AI sys- AI is a broad term that is used to de- significant computing power are better tems are not always accurate (e.g. they scribe computer systems that can sense positioned to extract and utilize data to can lead to discrimination or imperfect their environment, think, learn, and act create new products and services than solutions). He warns, “we can expect in ways that humans do. Organizations firms that do not have such comput- the technical weakness of AI systems to use AI in digital assistants such as ing access. In addition, because data- ‘scale up’ with the amount of computa- Apple’s Siri, chatbots such as H&M’s driven firms must make large capital tional power poured into them unless we chat bot assistant, and machine learn- investments to exploit big datasets, develop smarter algorithms and better ing applications such as Waze, which information asymmetry also applies systems of governance,” for the orga- can direct users through traffic jams. across firms. These big firms (such as nizations both developing and deploy- Governments also increasingly rely on Google, Amazon, Alibaba, and Ten- ing them. These AI systems could make AI to save time, money, and find new cent) already have an advantage. The major mistakes with significant social solutions. The U.S. military has used more data they have, the more easily consequences, another reason why gov- AI to predict component failure on they can use algorithms to transform ernance of AI is so important. tanks, while Kansas City developed raw data into new value-added data Finally, the research sphere, like a machine learning algorithm to help products. They can then sell these the internet and the world’s oceans, is forecast when potholes will form on products along with existing products. a “commons”—a place where many city streets. AI applications use com- Moreover, these new products and ser- people share resources and services. putational analysis of data to uncover vices generate even more data, which, Individual users could destroy the com- patterns and draw inferences. These ap- in turn, further perpetuates the market mons if they act only according to their plications in turn depend on machine power of these firms. own self-interest. But the commons can learning technologies that must ingest Information asymmetry also ap- thrive if it is governed effectively, by huge volumes of data. plies across countries. Of the 30 larg- individuals, firms, and governments. Effective AI requires high-quality, est internet companies by market capi- Thus, if we want to improve AI, we up-to-date, complete and correct data talization, the U.S. has 18; China has should want to encourage international to ensure accurate predictions and 6; Australia, Argentina, Canada and research collaborations and competi- avoid discrimination and bias. To Japan have 1 each; and the EU has tion. Research in sectors such as AI is build AI or machine learning systems, none. In its 2016 annual development likely to be more effective with an in- engineers need lots of data (data vol- report, the World Bank stated that, ternational feedback loop, where many ume), variety of data (data variety), and despite the widespread dissemination people at many different levels contrib- good data that is correct (data quality of digital technologies, many coun- ute to research. Scientists need a free and veracity). AI systems are not able tries, including many middle-income and open environment to provide such to distinguish between reliable and and developing countries have not yet feedback. Yet, the U.S. Government is unreliable data. If the algorithms are been able to benefit. To a great extent, increasingly taking steps to shelter and built on incorrect, unreliable data, these developing countries do not have the isolate U.S.-made AI instead of foster- systems will come up with incorrect, expertise, capital, or infrastructure to ing multinational collaborations.

89 8 GREAT DECISIONS  2020 uate AI technologies through standards The U.S. Approach to AI and benchmarks. The Trump administration expanded merica has long been a leader Kratsios is not alone--policymakers, on that plan, when President Trump in AI. According to Michael business leaders and others see that ad- launched the American AI Initiative in Kratsios,A Chief Technology Officer vantage as under threat from Chinese February 2019. The Executive Order and Deputy Assistant to the President competition. They argue that China that contained the Initiative made it clear at the White House Office of Science uses government funds to subsidize its that as under Obama, AI research would and Technology Policy, “America has AI companies and it mandates close co- be a priority. But the Trump administra- roughly 2,000 AI companies, more than operation between tech firms and gov- tion AI strategy had a more select au- double our closest global competitor. ernment. I argue that while Chinese in- dience—business. The administration We boast more AI unicorns, those be- novation may reduce America’s lead, it would help businesses and educators ing startups valued over $1 billion, than also invigorates American researchers. develop an AI-ready workforce. The Or- any other nation. Of the 32 AI unicorns, der claimed that Trump administration the United States has 17.” Kratsios is Trump administration steps officials were ready to engage with re- asserting that the U.S. is dominating that could promote AI as a searchers, businesses, and governments AI. Other analysts agree that the U.S. global public good in other countries. But by engagement, leads in talent, research, development the Trump administration did not always and hardware related to AI. Many even a. Plans and ethics mean cooperation. contend that the U.S. has significant The Obama administration first articu- Like previous administrations, the comparative advantage in AI. lated a National Artificial Intelligence Trump administration sought public But Kratsios is clearly nervous Research and Development Strategic comment on America’s AI strategy. about America’s ability to continue its Plan in 2016. The Research and De- However, the administration did not dominance of AI research and markets velopment Strategic Plan promised involve civil society groups in the for AI. In that same September 2019 that the U.S. Government would make development of these AI plans. The speech described above, Kratsios not- long-term investments in AI research, American AI Initiative had a section on ed, “the uniquely American ecosystem develop effective methods for human- AI and workers and another on AI and must do everything in its collective AI collaboration, understand and ad- ethics, but it did not invite ethicists or power to keep America’s lead in the AI dress the ethical, legal and societal im- workers associations to the AI outreach race and build on our successes . . . for plications of AI, ensure the safety and events. As example, in May 2019, The the benefit of the American people. We security of AI systems, develop shared White House hosted the Artificial Intel- start from a position of great strength, public datasets and environments for ligence for American Industry Summit and we have a plan to keep winning.” AI training, and test, measure and eval- to discuss both the promise of AI and the policies needed to maintain U.S. leadership in the age of AI. Not surpris- ingly, some observers have condemned the administration for focusing too much on business needs and involve- ment and ignoring the broader research potential of AI. To its credit, the administration has taken several steps to build an international consensus on the ethical use of AI. In May 2019, the U.S. joined with 41 other countries at the OECD to announce an international agreement for building trustworthy artificial intelligence. Moreover, the Department of State has asked the public to comment as to whether computer systems that can be used for the monitoring, interception, collection, preservation and/or retention of information can be freely exported or should be tightly Michael Kratsios, CTO of The United States, on center stage during the final day of Web Summit 2019 at the Altice Arena in Lisbon, Portugal, November 7, 2019. (PHOTO BY SAM controlled. These technologies include BARNES/SPORTSFILE FOR WEB SUMMIT VIA GETTY IMAGES) many built on AI, including: non-co-

90 ARTIFICIAL INTELLIGENCE 8 operative location tracking (products services, specifically Amazon, Alpha- (machine readable format). The U.S. that can be used for ongoing track- bet (Google), and Facebook. But if the government sought public comment ing of individuals’ locations without U.S. government regulates how these on a Federal Data Strategy to govern their knowledge and consent), drones firms operate, their costs will rise and and leverage the Federal Government’s and unmanned aerial vehicles, facial over time, they could have less fund- data and in so doing improve the use of recognition software, automated bio- ing and expertise to compete with firms data for decisionmaking and account- metric systems, social media analytics from other countries on AI services. ability for the U.S. Government, in- software, and gait analysis software. Despite a wide range of scandals cluding for policymaking, innovation, The U.S. has taken a leadership role in involving these firms, USG officials oversight, and learning. deciding which uses of AI are not ethi- moved slowly to investigate the busi- The Trump administration was also cal and which countries should benefit ness practices of the data-giants. As the first nation to place language on from open access to certain AI systems. public sentiment in the U.S. has be- public data in trade agreements. Trade But the U.S. did not engage with other come more supportive of breaking up policymakers have included language nations on the export question regard- or regulating these data giants, mem- in the U.S./Mexico/ Canada trade ing these types of AI. bers of Congress and regulators have agreement and the U.S./Japan digital become more determined to build an economy agreement signed in October b. Approach to research effective antitrust case. Federal offi- 2019 to encourage both the free flow The Trump administration has taken cials are examining if any of the big of data and to encourage policymakers other important steps to facilitate the data firms engaged in anti-competi- to provide public data in a machine- development of AI for the world at tive practices, and the Federasl Trade readable format. The trade agreement large. Despite its general inclination Commission (FTC) has imposed fines language is voluntary. In U.S.-Japan, to cut non-defense budgets, it pro- against some of these firms. it states, “to the extent that a Party posed increasing taxpayer funding for Meanwhile, the U.S. is taking oth- chooses to make government informa- AI research. It sought to continue the er steps to ensure that markets for AI tion available to the public, it shall en- leading research organization—the are competitive. Increasingly AI firms deavor to ensure that the government National Science Foundation’s work make their algorithms open source information is in a machine-readable on AI. NSF is also encouraging and so individuals can comment on and and open format and can be searched, coordinating AI research and adoption improve them. But many also patent retrieved, used, reused, and redistrib- among other USG agencies. their AI. In 2019, the U.S. Patent Office uted.” But the motivation is clear—re- But as noted above, the Trump ad- called for public comment on whether searchers in business and government ministration wants taxpayer dollars to AI should be patentable. U.S. laws will benefit if they can use data from yield applied research by focusing on state that an invention must contain public, proprietary and personal sourc- public-private partnerships. For ex- patent-eligible subject matter in order es to solve problems or provide more ample, the National Science Founda- to receive patent protection. Abstract effective services. tion (NSF) created an NSF-Amazon ideas, laws of nature, and natural phe- collaboration on fairness in AI. That nomena are excluded from patentable e. Some support for the pro- program calls for an initial $7.6 mil- subject matter. Moreover, only a hu- tection of personal data in lion to be awarded to researchers in the man can hold a patent. But the patent trade agreements form of three-year grants ranging from official has already received applica- Researchers need lots of data to make $750,000 to $1.2 million. Amazon pro- tions generated by AI, with human and AI effective. Firms can obtain access vided half the money for the grants but computer systems contributions. to that data through internationally ac- has no say in which research projects cepted rules governing cross-border get the money. d. Domestic and international data flows. Its most recent trade agree- data governance ment, between the U.S. and Japan, c. Competition policy and the Without direct intent, the Trump ad- states, “Each Party shall adopt or main- regulation of business ministration has promoted AI as an tain a legal framework that provides for Trump administration officials are international public good. It has led ef- the protection of the personal informa- caught in a conundrum. On one forts at the domestic and international tion of the users of digital trade.” This hand, they want to maintain and even levels to make public data more use- language is binding, but it does not re- strengthen America’s data giants to fa- able for data analytics. Trump officials quire that personal data be protected, cilitate global competition in AI. On followed Obama administration policy only that countries have a framework. the other hand, these same officials are designed to ensure that Federal public Moreover, the U.S. does not require under significant domestic and global data (data collected and held by gov- that regimes among signatories be pressure to rein in the predatory prac- ernment) be provided openly online interoperable. Instead it encourages tices of some of the largest American and where possible available in a form interoperability with language noting firms that research, utilize and sell AI computer systems can easily utilize “Recognizing that the Parties may take

91 8 GREAT DECISIONS  2020 different legal approaches to protect- vestment Risk Review Modernization America’s tech system and reduce em- ing personal information, each Party Act, which expanded the power of a ployment. America’s AI talent pool in- should encourage the development of committee of senior government offi- cludes not only individuals born within mechanisms to promote interoperabil- cials to block transactions on national the 50 states and territories, but also ity between these different regimes.” security grounds; these proposals re- individuals who choose to study and Thus, while the U.S. says its approach flect such concerns. The Committee then to work in the U.S. The number of to AI is designed to build trust, its ap- would look for “red flags,” where foreign students attending U.S. univer- proach to personal data protection pro- transactions involve critical technol- sities have been declining over the last vides a floor, which may be insufficient ogy or companies that collect sensitive few years for a multitude of reasons. to sustain trust in AI. personal data. However, potential students increas- These officials took other steps that ingly feel unwelcome in the U.S. Steps designed to advance AI could undermine rather than encour- Meanwhile, Trump officials have that could undermine AI as a age U.S. AI competitiveness. In Janu- warned universities that they could lose global public good. ary 2019, the Commerce Department research funding if they work with for- While taking important steps that ad- asked for public comment on export eign students or benefit from foreign vance AI for the world, the Trump controls related to emerging technolo- funding. In May 2019, the White House administration has also taken many gies such as AI. Should the administra- Office of Science and Technology Pol- steps that undermine an international tion adopt such controls, firms would icy (OSTP) launched through the Na- approach to AI. find it harder to work with firms in oth- tional Science and Technology Council er countries. They could also increase the Joint Committee on Research Envi- a. A view of AI as essential to costs, and thereby make it harder for ronments (JCORE) to bring a “whole national security and a mili- U.S. firms to compete overseas. Fi- of government” approach to address tary technology nally, such controls, if adopted, could the most pressing challenges facing the The U.S. has promoted a nationalist reduce U.S. interaction and competi- U.S. research and scientific community. conception of AI, over-emphasizing tion with other firms, which could af- It created a Subcommittee on Research its role as a military technology and its fect the pace of innovation in AI. Firms Security “to protect America’s research- importance to national security . As of have already reduced their willingness ers from undue foreign influence with- 2019, almost every branch of the U.S. to sell sensitive technologies overseas. out compromising our values or our military has an AI arm. The head of Moreover, the Department of Com- ability to maintain the openness and the Joint Artificial Intelligence Center merce bypassed traditional strategies integrity of our innovation ecosystem.” for the military, Lt. General Shanahan for developing regulations in the U.S. Researchers and universities are find- noted that the military needs AI to bet- Most of the time, policymakers devise ing themselves in between a rock and a ter understand the world it operates in, such export controls under a regular hard place—choosing between U.S. and and it needs to excel at AI if it is to have public notice and comment process and international investment. influence. He also sees a competition then, depending on such comments, ad- China has responded with anger in among nations to advance AI. “At its ditional sectors could be added to lists response to these strategies. Chinese core, we are in a contest for the character of goods that have both civilian and scientists have warned that new U.S. of the international order in the digital military uses that are agreed upon by research restrictions will hinder col- age. Along with our allies and partners, larger groups of countries. However, laboration and threaten Chinese fund- we want to lead and ensure that that in September 2019, Commerce De- ing for joint projects. If these policies character reflects the values and inter- partment officials said that some of the continue, they could gradually and col- ests of free and democratic societies. I export restrictions will be developed lectively undermine the basic research do not see China or Russia placing the under a regulation that allows controls necessary to facilitate AI competitive- same kind of emphasis in these areas.” to be applied on an emergency basis ness, reducing the public good nature of and bypasses a public comment pro- AI. Finally, they could also prod China b. Limiting foreign investment cess. The strategy appears to contradict to focus more on its own innovation. in U.S. AI and proposing AI America’s commitment to democratic export controls governance of AI. d. Alienating Chinese research The U.S. has long supported an open partners climate for investment, except when c. Restricting immigration and The U.S. is also punishing Chinese such investment could impair national the AI talent pool AI companies, accusing them of sell- security. But receptiveness to interna- The Trump administration has also ing technologies that enable Chinese tional investment has changed in the restricted work and student visas, re- repression of minorities and human wake of fears of Chinese competition ducing the already limited pool of rights activists. Human rights groups in high tech sectors such as AI. In 2018, AI researchers in the U.S. Restrict- and journalists have reported that the Congress passed a law, the Foreign In- ing foreign students could undermine Chinese government has detained

92 ARTIFICIAL INTELLIGENCE 8 more than a million ethic Uighurs, Turkish-speaking Muslims, in reeduca- tion camps in China. Chinese officials deny that the Uighurs are imprisoned in these camps and maintain that what they call vocational training centers do not infringe on Uighurs’ human rights. No foreign journalists or government officials have been allowed to visit the camps. Instead of working with U.S. allies on a unified strategy, in Octo- ber 2019, the Trump administration blacklisted (which means Americans can’t work with) eight companies that allegedly used AI services to monitor Uighurs within China. The firms blacklisted included: Megvii, an image recognition software developer sometimes (From L) EU Commission President Jean-Claude Juncker, Britain's Prime Minister Theresa referred to as being the world’s most May, Norway's Prime Minister Erna Solberg, Senegal's President Macky Sall, New Zea- land's Prime Minister Jacinda Ardern and French President Emmanuel Macron attend a valuable AI start-up; iFlytek, a voice launching ceremony for the 'Christchurch callin Paris, on May 15, 2019. (CHARLES PLATIAU/ recognition specialist; Hikvision , one AFP VIA GETTY IMAGES) of the world’s biggest CCTV systems manufacturers; SenseTime, a start-up e. Alienating allies by not ad- that these firms are not publishers and that makes AI services for use in smart dressing disinformation and should not be held to account for what city, transport and education applica- hate speech users place on their platforms. Demo- tions; and Yitu, a developer of machine Meanwhile, the administration has not crats and Republicans alike have long vision and voice recognition tools. cooperated consistently with its tradi- seen this law as essential to the success These firms are reliant on U.S.-based tional allies on several issues that con- of the American internet. know-how, but U.S. firms are also reli- cern democratic nations: online terror- Moreover, the Trump administration ant on these companies as customers ism and hateful speech, misinformation has also tried to encourage other coun- and competitors. Several of these com- and disinformation, and protection of tries to adopt a similar approach. In the panies work closely with U.S. AI com- personal data. U.S./Mexico/Canada FTA (USMCA panies and universities, including MIT. While citizens and policymakers or NAFTA 2.0) says, “no Party shall With this action the U.S. became the alike have long promulgated hateful adopt or maintain measures that treat a first nation to punish Chinese compa- speech, lies and propaganda, the sheer supplier or user of an interactive com- nies for misuse of AI, a reiteration of volume of such speech has made it a puter service as an information content its commitment to human rights. But threat to democracy. AI and social me- provider in determining liability for in doing so, the U.S. also signaled that dia platforms play a leading role in per- harms related to information stored, it was not willing to encourage and pos- petuating this threat, as governments processed, transmitted, distributed, or sibly allow international collaboration and individuals use bots powered by made available by the service, except on variants of AI using facial recog- AI to disseminate disinformation. AI to the extent the supplier or user has, in nition. There are positive uses of such systems could also mitigate the threat whole or in part, created, or developed technologies. Moreover, the step could by monitoring dissemination online. the information.” While this language inspire China to devote more resources The Trump administration has done does not inhibit the ability of a signa- to separating its firms from U.S. firms, little to regulate social media platforms tory to regulate such services, the U.S. researchers, and capital. Almost every that use AI to determine content and to is signaling that these protections are data giant has an AI research lab in Chi- remove untruthful, fake, or malicious essential for social platforms. Others na. The Wall Street Journal reported content. The U.S. has moved slowly for may read these signals as saying that that many of these firms not only col- two reasons: first, America’s longstand- such protections are more essential laborate on research with U.S. univer- ing commitment to freedom of expres- than protecting the public from harm- sities but are dependent on advanced sion, and second, because of a key U.S. ful content. Interestingly, in October U.S. chips: “In the long term, the move law, Section 230 of the Communica- 2019, some Republican members of could spell an end to partnerships with tions Decency Act. In the early days of Congress criticized the inclusion of U.S. companies and institutions that go the internet, Congress decided that the section 230-like language, noting it back years and limit access to top over- internet could not thrive without pro- was an issue under debate in the U.S. seas talent, experts said.” tecting content providers. It delineated Moreover, citing first Amendment

93 8 GREAT DECISIONS  2020 concerns, the Trump administration has not only a problem for the U.S.; it puts protection is ineffective not just for refused to sign the Christchurch Call, the data protection of citizens of other Americans but the world’s people. As a commitment by 17 governments, the countries at risk. Because of the huge evidence that America’s approach is EU, and tech companies to take steps to amounts of data needed for AI and the ineffective, the FTC fined Facebook eliminate terrorist and violent extremist dominance of U.S. companies in provid- only $5 billion for the Cambridge Ana- content online. The call acknowledges ing AI services, strong data protection is lytica Scandal, where this data analytics that “respect for freedom of expression essential to the provision of AI so peo- company harvested the personal data of is fundamental. However, no one has the ple feel safe using and relying on these millions of peoples’ Facebook profiles right to create and share terrorist and vi- services. But, the U.S. does not have without their consent and used it for po- olent extremist content online.” Content a unified data protection law, although litical targeting. Analysts saw the fine moderation is hard; yet, the U.S. has so 3 states (most importantly California) as too small to prod the company to ac- far has taken no steps to punish compa- have passed such laws and 12 are con- tually do an effective job of protecting nies that carry such content. sidering as of June 2019. Critics such personal data. as Access (an international NGO work- Taken in sum, the U.S. has put for- f. Regulation of personal and ing on digital rights) noted that the U.S. ward a comprehensive AI strategy that public data regulatory agency, the FTC, has barely advances AI in the U.S. and internation- Some argue that America’s failure to instituted cases or demanded sizeable ally. However, it is also acting in ways that enact an online data protection law is fines. Hence, they argue that U.S. data undermine AI as a global public good.

What is the EU doing? he EU has made clear it wants democracy. In October 2019, Europe’s personal data used in AI and other data global leadership in “developing highest court, the European Court of services has gained international con- Tand deploying cutting-edge, ethical Justice, ruled that it could require Face- verts. Other countries, including Bra- and secure AI.” Policymakers in the book and other social platforms to take zil, Mexico, Thailand, India, Indonesia, EU insist that AI can be developed and down hateful speech and disinforma- and Hong Kong have built on the EU utilized in an ethical manner that is re- tion. But human rights groups noted model. Meanwhile, the EU has recog- spectful of human rights. that the decision raised significant nized 12 countries as having equivalent Like the U.S., the EU has also put questions about how companies should (adequate) levels of personal data pro- forward a detailed plan for ethical AI, behave if hateful speech was legal in tection, and many more are striving to which the EU terms “trustworthy and one nation but not another. Moreover, become adequate so that they can free- human-centric AI.” The 27 nations of the court did not explain how Facebook ly trade data with and from EU citizens. the EU have increased funding and and other such companies can delete Most recently, the EU has designed published a roadmap to achieve trust- posts, without going through the posts a senior official, the former Commis- worthy AI. But as in the United states, of all its users, a significant violation sioner for Competition, Margrethe EU policymakers struggle to regulate of their online privacy. Finally, it raised Vestager, as Executive Vice President- AI and data effectively. questions of how to reconcile this rul- designate of a Europe fit for the Digital Some EU member states, such as the ing with freedom of expression, anoth- Age. If she is approved by the EU Par- UK, Germany, France, and Spain, have er human right. liament, her job would be to coordinate many competitive AI firms. Yet these The EU, like the U.S., uses trade tax, competition and industrial policies firms are much smaller than their U.S. agreements to promote the free flow of related to data-driven sectors. Her el- counterparts and do not have access to data, which allows its researchers and evation reveals that the EU views trust the large data pools of the U.S. or Chi- firms to gain access to larger pools of and competitive markets as equally im- nese data giants. EU ministries have personal and public data. But the EU portant as innovation. challenged some of the practices of approach rests on its commitment to The EU has been more open the large data firms such as Facebook, strong regulation of the General Data than the U.S. to foreign investment Google and Amazon. European agen- Protection Regulation (GDPR), which in AI and to allowing collaborative cies have levied heavy fines against protects personal data of EU citizens. research in AI. As example, France firms that engage in uncompetitive Perhaps most importantly, the EU ad- and Canada have established a panel business practices and individual EU opted regulations that grant users great- to support and guide the responsible member states, particularly France and er control over their data and ban firms development of artificial intelligence Germany, have worked hard to coun- from using AI as a sole decisionmaker that is grounded in human rights, ter disinformation. European policy- in choices that can undermine human inclusion, diversity, innovation, and makers have also focused on the costs rights and freedoms. economic growth. of disinformation and hate speech to The EU’s approach to protecting Nonetheless, the EU approach is

94 ARTIFICIAL INTELLIGENCE 8 not without problems. Several EU laws also wants to encourage innovation, benefit European economic growth, such as the Copyright Directive, de- but it is also raising costs to innova- but it is also working to ensure that signed to advance some human rights tors through regulation such as GDPR, AI benefits the broader public. Like undermine others, such as freedom of which mandates that firms make AI al- the U.S., it struggles to balance public expression. EU efforts to prevent disin- gorithms explainable if an individual demands for regulation with the need formation may also give firms powers believes an algorithm was used in a to innovate. But in contrast with the to regulate content that governments discriminatory manner. U.S., the EU is open to international should maintain. Meanwhile, the EU Taken in sum, the EU wants AI to collaboration.

Findings and recommendations

I has great potential. By combin- AI services to consumers, and protected. Personally identifiable infor- Aing and analyzing big datasets, how they invest in AI. mation is information that can be used policymakers could make economies America needs to adopt a different ap- to identify, contact or locate a single more efficient and government more proach to its data behemoths. These person, or to identify an individual in effective. Moreover, researchers could companies hoard the data we give context. use AI to address complex problems. them, mixing them over time to build Such a plan should address issues of But the Trump administration has not new innovative services. These firms ownership, control, portability, equity developed coherent policies that could require huge computing resources, (is the data developed and analyzed in advance AI globally. While it has many lots of capital, thousands of comput- an even-handed manner?) and moneti- thoughtful aspects, the Trump adminis- er chips, and tons of energy to power zation of data (who can earn money for tration has also put forward strategies their mammoth servers. The data giants data and how). Policy makers will also on immigration, work visas, export may be crowding out these assets and have to address issues related to the controls, access to public data, encryp- making them too expensive for small- cloud and data transfer — how a coun- tion, and competition policy that will er companies as well as universities. try can control the transfer of data that reduce the competitiveness of U.S. Mandated transparency offers a way to might include personally identifiable firms and the credibility and flexibil- hold the data giants to account without information or data that is important ity of U.S. AI research. These policies depriving them of significant funds to for national security. Such plans should could also alienate longstanding re- innovate. also address how firms can mix various search allies and trade partners. With greater transparency, we will types of data while protecting personal have a greater ability to effectively reg- data and metadata, as well as address Recommendation 1: The U.S. ulate the data giants (and the AI they questions of what entities can monetize should limit restrictions on AI produce). Moreover, the public will be the results of the mixture of personal, research collaboration only better informed about how often they proprietary and public data. Each coun- to those areas that pose an interact with AI. try will need to evolve strategies that identified threat to national allow policy makers to maintain trust security. Recommendation 3: The U.S. online consistent with their norms for As the world’s AI leader, the U.S. should work with interna- governance. should rethink its AI strategy, building tional organizations such as But developing countries do not out from the concept that AI is a global the World Bank, ITU, UNC- have data-driven sectors (such as AI) public good. Moreover, U.S. (and in- TAD, the OECD and others to and may struggle to regulate data. ternational) policymakers should stop encourage states to develop Moreover, they must choose between thinking of AI development as a race plans for the regulation and devoting resources to governing data or a zero-sum game, where only one exchange of different types of and investing in public health or edu- country (and its firms) lead. Instead the data. cation. The U.S. has a responsibility to U.S. should do more to disseminate AI The U.S. needs to do more to help de- help these nations. and data governance expertise so that veloping countries produce and utilize Conclusion AI can meet its potential. AI. The U.S. government should help other nationsd develop a strategy for These days the U.S. is building walls Recommendation 2: The U.S. how public and personal data is to be rather than bridges. But if policymak- should demand greater trans- used and exchanged across borders (a ers want AI to reach its potential, the parency from the companies national data plan). The plan should U.S. should help other countries use that provide us with AI re- focus on ensuring that public data is this technology to address some of garding how they use data, open and personal data, especially per- the problems that bedevil the world’s when they use AI and provide sonally identifiable data is adequately people.

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discussion questions

1.If the U.S. closes itself off from the world—is it stronger and 4. What is the level of privacy an individual can expect living safer or weaker and more prone to hacking? in a modern society? Is privacy, as a concpet, going to become alien in the future? 2. Will the advance of AI have as profound an effect on the economy as the computer revolution? 5. If AI is a “global public good” than what are it’s associated negative “externalities”? (Such as the weakening of democracy, 3. AI is more about Big Data. Is it a stretch to expect a global the rise of populism and the loss of privacy.) agreement on Ethics and AI? What might a unified data protection law include? What exactly needs to be regulated and how? 6. Should the U.S. hold big data companies accountable for spreading users personal information? (Similar to how the EU has gone after Facebook and Google.) Would that have a negative effect on the growth of AI?