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The AI Powered State: China's Approach to Public Sector Innovation­ The AI Powered State: China's approach to public sector innovation The AI Powered State: China's approach to public sector innovation Acknowledgements This project has been a real team effort and there are lots of people who have dedicated their time and energy to make this essay collection possible. A first set of thanks goes to each of the authors for sharing their expertise and for working with such enthusiasm and commitment in spite of the extraordinary and difficult circumstances of the past few months. A huge thank you to Michelle Pauli for her excellent editorial advice and support, and to Joana Pereira for her imaginative work on the collection’s design. At Nesta, Tom Symons has worked tirelessly to bring this project to life and I am deeply grateful for his constant support and guidance. Special thanks also go to Nyangala Zolho for her fantastic input and advice throughout the process of curating this collection. Many thanks to Wayne Holmes for offering his expertise and editorial support, and to Anna Cleary, Wallis Grant, Ella White and Georgina Roberts for their help on production and communications. Thank you to all the other Nesta colleagues who offered advice and support along the way: Geoff Muglan, Jonathan Bone, Aleks Berditchevskaia, Madeleine Gabriel, Laurie Smith, Juan Mateos-Garcia and Jen Rae. The essays in this collection represent the views of each author and do not necessarily 02 represent the views of Nesta. Nesta’s views are reflected in the introduction and conclusion to the collection. Hessy Elliott About Nesta Nesta is an innovation foundation. For us, innovation means turning bold ideas into reality and changing lives for the better. We use our expertise, skills and funding in areas where there are big challenges facing society. Nesta is based in the UK and supported by a financial endowment. We work with partners around the globe to bring bold ideas to life to change the world for good. www.nesta.org.uk If you’d like this publication in an alternative format such as Braille, large print or audio, please contact us at: [email protected] May 2020 Nesta is a registered charity in England and Wales with company number 7706036 and charity number 1144091. Registered as a charity in Scotland number SCO42833. Registered office: 58 Victoria Embankment, London, EC4Y 0DS. The AI Powered State: China's approach to public sector innovation The AI Powered State: China's approach to public sector innovation Contents Introduction 02 The dynamics of China’s AI strategy 09 01. Promoting Nationally, Acting Locally: China’s next generation AI approach — by Jeffrey Ding 11 AI in action: China’s use of AI in public services 17 02. Breaking the Iron Triangle: AI in China’s healthcare system — by Andy Chun 19 03. The Future of the Classroom? China’s experience of AI in education — by Yi-Ling Liu 27 04. From Traffic Management to Smart Courts: China’s approach to smart cities — by Eugeniu Han 35 01 05. Separating Myth From Reality: How China’s Social Credit System uses public data for social governance — by Dev Lewis 43 The ethics and ideology of China’s approach to AI 51 06. China’s Approach to AI Ethics — by Danit Gal 53 07. The Ideology Behind China’s AI Strategy — by Rogier Creemers 63 Conclusion 70 Contributors 72 The AI Powered State: China's approach to public sector innovation Introduction What can we learn from China’s Taking a closer look at China’s use of artificial intelligence in use of AI in public services public services? A central theme of China’s 2017 AI China is striding ahead of the rest of the development strategy is that AI can help world in terms of its investment in artificial improve public services and governance,5 and intelligence (AI), rate of experimentation and this has created significant opportunities for adoption, and breadth of applications.1 In public sector innovation. Local governments 2017, China announced its aim of becoming and authorities, research institutions and the world leader in AI technology by 2030.2 tech companies are making rapid progress AI innovation is now a key national priority, in pursuing AI projects that address real- with central and local government spending world problems, from medical imaging for on AI estimated to be in the tens of billions disease diagnosis to smart city applications of dollars.3 for the improvement of transport and urban infrastructure.6 Such applications have 02 While Europe and the US are also following tended to be overlooked by analysts outside AI strategies designed to transform the China, who too often default to narratives public sector,4 there has been surprisingly about authoritarianism or the foreign policy little analysis of what practical lessons can implications of a global AI arms race. be learnt from China’s use of AI in public services. Given China’s rapid progress in this This essay collection aims to offer area, it is important for the rest of the world policymakers new ideas that may inform to pay attention to developments in China their own practice, by tapping into China’s if it wants to keep pace. experience of AI in public services. The essays – written by experts on AI innovation This essay collection finds that examining in China – offer detailed analyses of China’s China’s experience of public sector innovation development and use of AI technologies, offers valuable insights for policymakers. examining the impact on public service Not everything is applicable to a western delivery and society, and considering context – there are social, political and what can be learnt. ethical concerns that arise from China’s use of new technologies in public services and While each essay represents the views of governance – but there is still much that the author and does not necessarily reflect can be learnt from its experience while also the position of Nesta, we hope that the acknowledging what should be criticised collection as a whole will offer a nuanced and avoided. understanding of public sector AI innovation in China – challenging misconceptions, highlighting promising approaches and applications, and cautioning against problematic uses. The AI Powered State: China's approach to public sector innovation The AI Powered State: China's approach to public sector innovation Learning from China’s experience research. The urgency of health challenges such as an ageing population are universally Through the essays, we discover what’s applicable and there are major gains to be good, bad and unexpected about China’s had for governments that can move quickly public sector AI innovation. There are six and find new and effective approaches key lessons that emerge: to tackle such challenges. The regulatory environment in Europe may not allow us 01. Rapid AI development is driven to replicate China’s fast-paced approach by local innovation to experimentation and implementation China is experiencing rapid innovation (and there are reasons why we wouldn’t in many AI fields, thanks to its strategy want it to),9 but it is worth considering how of actively cultivating local innovation experimentation methods like regulatory ecosystems. Local governments in China sandboxes and innovation testbeds could are empowered to drive forward with be used to adapt this approach for a western experimentation and implementation, and context. This resonates with Nesta’s work on are establishing cross-sector partnerships ‘anticipatory regulation’ which has explored 03 with industry and academia. In light of the the role these methods can play in allowing UK government’s regional ‘levelling-up’ new products and services to be safely tested ambitions to address geographic economic and brought to market more quickly,10 and is imbalances by, among other things, boosting an approach that has also been called for by research and innovation throughout the NHS Digital in the UK.11 UK,7 China’s innovation ecosystem is instructive. China’s increased R&D spending, 03. Innovation isn’t always the result combined with devolved local governments of cutting-edge tech that have the power and authority to drive China’s AI innovation successes are not collaboration with technology and research always due to cutting-edge technologies. partners, highlights how flourishing innovation Instead, success in China is often down to ecosystems can be fostered outside of capital rapid deployment and scaling of existing cities. There are echoes here of previous calls AI technologies. China’s innovation model, from Nesta and others for more of the UK’s which prioritises ‘fusion and speed’ over R&D budget to be devolved to cities and breakthrough technologies,12 demonstrates regions to spread the impact and benefits that an AI strategy doesn’t have to focus of innovation across the UK.8 China’s solely on the most advanced technologies in experience would suggest there is merit order to be successful. While conversations in pursuing this approach. about innovation in the UK often focus on R&D for new, advanced technologies, equally 02. ‘Experiment first and regulate later’ important is ensuring better adoption of leads to quick progress existing technologies13 – yet the uptake of China has made swift progress in practical AI available AI technologies among UK councils, applications because it experiments first and for example, remains strikingly low.14 There is regulates later. China’s agile and pragmatic clear scope for dedicated efforts to be made approach to innovation is resulting in the in the UK and other European countries fast-paced development of AI applications, to consider how existing AI technologies especially in the field of healthcare, with can be adopted and scaled to improve promising results in areas such as medical public services.
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