the Hello, World: Artificial Intelligence and its use in the Public Sector Draft primer for public servants on the uses and considerations for AI in supporting public sector innovation and transformation. Observatory of Public Sector Innovation (OPSI), Reform of the Public Sector Division (RPS), Directorate for Public Governance (GOV) OECD As of 1 August 2019 Note: This document represents an early version of the results of the research conducted by the OECD OPSI to help governments understand the definitions and context for AI, some technical underpinnings and approaches, how governments and their partners in industry and civil society are using AI for public good, and what implications public leaders and civil servants need to consider when exploring AI. The document is made available to expert communities and interested individuals within and beyond OECD through an open consultation in order to surface ideas on how to make the primer even better, and to identify potential gaps or missing points. The consultation seeks to ensure that the primer it reflects an accurate representation of the current state of play of AI in the public sector. The deadline for comments, feedback, and contributions is 1 September 2019. You may provide comments in three ways: 1. Adding comments to a collaborative Google Doc at https://bit.ly/2ST4Ujr, 2. Adding comments and edits (in tracked changes) to .doc version of the document and emailing it to [email protected], and/or 3. Leaving comments on the public consultation announcement blog at https://oecd- opsi.org/ai-consultation. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. 1 Introduction About OPSI and this document In a time of increasing complexity, uncertainty and shifting demands, governments and public servants need to understand, test and embed new ways of doing things. The OECD Observatory of Public Sector Innovation (OPSI)1 serves to help them in their exploration and implementation of all forms of innovative efforts, ranging from grappling with emerging technologies, to leveraging big data analytics and open data, strengthening innovation skills and capacities, promoting citizen-driven services, and fostering innovative procurement and human resource management systems, among others. OPSI’s mission is to understand the dynamics of innovation in order to create and fuel systemic change in the public sector. OPSI works to meet the needs of countries and cities around the world, and seeks to empower public servants by working with them to: Uncover emerging practices and identify what is next, by identifying new practices at the leading edge of government, connecting those engaging in new ways of thinking and acting, and considering what these new approaches mean for the public sector. Explore how to turn the new into the normal, by studying innovation in different public sector contexts and investigating potential frameworks and methods to unleash creativity and innovation and ways to connect them with the day-to-day work of public servants. Provide trusted advice on how to foster innovation, by sharing guidance and resources about the ways in which governments can support innovation to obtain better outcomes for their people. Through its work with countries all over the world, OPSI has learned that innovation is not just one thing; it takes different forms all of which should be considered and appreciated in the public sector. OPSI has identified four primary facets to public sector innovation.2 Mission-oriented innovation sets a clear outcome and overarching objective for achieving a specific mission. 1 https://oecd-opsi.org. 2 https://oecd-opsi.org/projects/innovation-facets. 2 Enhancement-oriented innovation upgrades practices, achieves efficiencies and better results, and builds on existing structures. Adaptive innovation tests and tries new approaches in order to respond to a changing operating environment. Anticipatory innovation explores and engages with emergent issues that might shape future priorities and future commitments. Through this work with governments, OPSI has found that a portfolio approach to innovation, which takes into account a combination of facets, is the optimal approach. In a complex world, relying on any one single approach is highly risky. Multiple options should therefore be available to offset the risk and ensure viable alternatives. AI is a general purpose technology with the potential to have a significant effect on public policies and services. It can be used in ways that cut across and touch on multiple facets of innovation. For instance, global leaders already have strategies in place to build AI capacity as a national priority (mission-oriented). AI can be used to make existing processes more efficient and accurate (enhancement-oriented). It can be used to consume unstructured information, such as tweets, to understand citizen opinions (adaptive). Finally, in looking to the future, it will be important to consider and prepare for the implications of AI on society, work, and human purpose (anticipatory). In order to seize its innovative potential, mitigate negative consequences, and help governments achieve a portfolio approach, public leaders and servants will need to understand AI and how it can be used, and be aware of the key considerations when doing so. To help them achieve this, OPSI has developed this primer, which draws on the work of the Working Party of Senior Digital Government Officials (E-Leaders)3 and the OECD AI Policy Observatory.4 It is the second in a series of overviews on topics of interest for the public sector innovation community, following on from Blockchains Unchained, published by the OECD as a working paper in June 2018.5 This document is an early version of the results of research conducted by the OECD to help governments understand how AI works and its implications for the public sector. The document is made available to expert communities within and beyond OECD through an open consultation in order to identify gaps or missing points, and to ensure it reflects an accurate representation of the current state of play of public sector AI. What OPSI seeks through the consultation OPSI is open to all types of feedback through the consultation, including: Does the report strike the right balance between technically sound yet accessible for civil servants? Are there any gaps, inaccurate statements, or missed opportunities for improvement? For instance, there is some debate on whether rules-based approaches should be considered AI. Did we describe this appropriately? Are there additional examples, tools, resources, or guidance that civil servants should be aware of? In what ways can AI support the primary Facets of public sector innovation?6 3 http://oecd.org/governance/eleaders. 4 http://oecd.ai. 5 https://oe.cd/blockchain. 6 https://oecd-opsi.org/projects/innovation-facets 3 Table of Contents Summary of Initial Observations 5 Chapter 1. Artificial Intelligence: Definitions and context 7 Defining Artificial Intelligence 7 General AI vs. Narrow AI 9 Renewed enthusiasm for AI 13 What is next for AI? 22 Chapter 2. Understanding different AI approaches 25 Data as fuel for AI 25 Evolution of AI: Rules-based AI versus Machine Learning 32 Applying Machine Learning 40 Different ways machines can learn 41 Other AI subfields benefiting from Machine Learning 52 Machine Learning performance 56 Machine Learning: Risks and challenges 58 Chapter 3. Emerging government practices and the global AI landscape 63 Government AI strategies 63 Public sector components of national strategies 64 AI projects with a public purpose 66 Keeping up with advancements in public sector AI 75 Chapter 4. Public sector implications and considerations 77 Provide support and a clear direction, but leave space for flexibility and experimentation 77 Is AI the best solution to the problem? 82 Develop a trustworthy, fair and accountable approach 87 Secure ethical access to, and use of, quality data 97 Ensure government has access to internal and external capability and capacity 101 Bringing it all together: A framework for governments to develop their AI strategy 110 Annex A. Case studies 112 Using AI to crowdsource public decision-making in Belgium 113 Finland’s National AI Strategy 116 Canada’s “bomb-in-a-box” scenario: Risk-based oversight by AI 121 The European Commission’s Ethical Guidelines for Trustworthy AI 123 Canada’s Directive on Automated Decision-Making 129 United States Federal Data Strategy and Roadmap 134 The Public Policy Programme at The Alan Turing Institute (United Kingdom) 138 Annex B. Glossary 143 References 144 4 Summary of Initial Observations Artificial Intelligence (AI) holds great promise for the public sector and places governments in a unique position. They are charged with setting national priorities, investments and regulations for AI, but are also in a position to leverage its immense power to innovate and transform the public sector, redefining the ways in which it designs and implements policies and services. Hype around emerging technologies often overstates or obscures their practical applications. An understanding of AI is therefore critical to helping policy makers and civil servants determine whether this technology can help them advance their missions. Individuals and businesses interact with AI every day. Although the technology has been researched and discussed for over 70 years, there is still no uniformly accepted definition. AI means different things to different people. According to the OECD Recommendation on Artificial Intelligence, AI consists of machine-based systems that can, for a given set of human-defined objectives, make predictions, recommendations or decisions influencing real or virtual environments. This guide helps to determine what this mean for public sector innovation, and aims to help public servants understand AI and navigate its implications for government policies and services.