ARTIFICIAL INTELLIGENCE IN APEC Overview of the state of AI in APEC economies and the enabling initiatives that will further drive adoption Foreword .........................................................................................................................................................................................1 Acknowledgements .....................................................................................................................................................................2 Introduction ...................................................................................................................................................................................3 Key Takeaways ...............................................................................................................................................................................5 Section 1. Landscape Overview: AI Initiatives and Their Impact Across the APEC Region 1. AI Frameworks and Strategies .................................................................................................................................7 2. Innovative and Transformative AI for Economic Impact ................................................................................9 Section 2. Building Forward: Evidence-based Policies to Support Widespread AI Adoption 1. Elevating AI in APEC’s Economic Agenda .........................................................................................................17 2. Building Trust in AI .....................................................................................................................................................18 3. Introducing Supportive Policy Frameworks for AI .........................................................................................20 4. Improving Regulatory Coherence and International Cooperation ..........................................................23 5. Preparing Jobs and Skills for the Transformations of AI..............................................................................24 Recommendations .....................................................................................................................................................................25 Annex I: AI Case Studies from APEC Member Economies .........................................................................................28 Australia ....................................................................................................................................................................................29 Chile ...........................................................................................................................................................................................32 People’s Republic of China ................................................................................................................................................35 Japan ..........................................................................................................................................................................................39 Mexico .......................................................................................................................................................................................42 New Zealand ...........................................................................................................................................................................45 Papua New Guinea ...............................................................................................................................................................48 Peru ............................................................................................................................................................................................51 The Philippines .......................................................................................................................................................................54 Russia .........................................................................................................................................................................................56 Singapore .................................................................................................................................................................................60 Chinese Taipei .........................................................................................................................................................................62 United States ..........................................................................................................................................................................65 Annex II: Summary of Domestic AI Strategies, Agencies, and Initiatives .............................................................67 Annex III: Overview of Regional/Multilateral AI Frameworks ...................................................................................70 References.....................................................................................................................................................................................76 Foreword As chair of the APEC Business Advisory Council (ABAC) for 2020, it is my pleasure to present this report on artificial intelligence (AI) and APEC. This report, which is part of an initiative to raise the profile of AI on APEC’s agenda, illustrates how AI-based technologies are being implemented across APEC economies to spur economic growth, address societal challenges, and solve critical business issues. It also sets forth several recommendations from ABAC on how APEC can bolster its role in addressing the policy implications of AI-based technologies. ABAC serves as the official mechanism for private sector input for APEC and in this role, we strive to ensure that APEC’s agenda remains forward-looking and responsive to new developments in the region’s commercial environment and cross-border trade. AI technologies have the potential to significantly impact businesses and communities across our economies and we believe that APEC can serve as an effective forum for member economies to collaborate on ways to maximize the benefits of AI and promote inclusive growth while ensuring its use in a responsible and ethical manner. APEC boasts a long record of proactive engagement on policy issues surrounding emerging technologies. When Malaysia hosted APEC in 1998, ministers established the APEC Blueprint for Action on Electronic Commerce. In 2004, APEC created the APEC Privacy Framework which led to the development of the Cross Border Privacy Rules system. APEC has the opportunity to build on this record of success by taking a holistic approach to tackling policies around AI. As we release this report, APEC economies are facing the twin threats of a global pandemic and an economic crisis that will leave its mark on our communities for years to come. The adoption of digital technologies, including those that leverage AI, have accelerated and they are playing a crucial role in enabling people to continue to go about their daily lives. We will also rely on them as we work to recover and restore economic growth. However, as we increase our dependence on digital technologies, we risk exacerbating the digital divide that existed before the pandemic. How APEC economies address the accelerated rise of the digital economy and leverage new technologies like AI is one of the most pressing issues of our times. Dato Rohana Tan Sri Mahmood APEC Business Advisory Council (ABAC) Chair 2020 1 Acknowledgments About ABAC The APEC Business Advisory Council (ABAC) was created by the APEC Economic Leaders in November 1995 to provide advice on the implementation of the Osaka Action Agenda and on other specific business sector priorities, and to respond when the various APEC fora request information about business-related issues or to provide the business perspective on specific areas of cooperation. ABAC comprises of up to three members of the private sector from each economy. ABAC members are appointed by their respective Leaders, and represent a range of business sectors, including small and medium enterprises. The economy determines the term of membership of each appointee as well as its own administrative arrangements and staff support The ABAC International Secretariat based in Manila, the Philippines, serves all members and all economies and maintains a website. Funding is provided through a system of annual dues, which are structured to reflect the size of each economy, following the APEC formula. For more information, visit www2.abaconline.org About Microsoft At Microsoft, our mission is to empower every person and every organization on the planet to achieve more. Our mission is grounded in both the world in which we live and the future we strive to create. Today, we live in a mobile-first, cloud-first world, and the transformation we are driving across our businesses is designed to enable Microsoft and our customers to thrive in this world. We do business in 170 countries and are made up of 144,000 passionate employees dedicated to fulfilling our mission of helping every person and every organization to achieve more. For more information, visit https://news.microsoft.com About TRPC TRPC is a boutique consulting firm specializing in digital economy and digital trade developments