Alternative blockchains, randomness, economics, and other research topics; Hard Problems of Cryptocurrency; For example, the Soviet Union gave an overwhelming priority to the military application of illegally imported semiconductor manufacturing equipment well into the 1980s, which essentially guaranteed that the Soviet Unions industry would remain dependent on Western technology and never reach internationally competitive economies of scale.54. (1a)A;@ d` @p (Y *PaRB1MIYj@Z:Rd;JpUR6F#Q5TP|Q+T-QF0 IBM Cloud Pak for Data is a data and AI platform with a data fabric that makes all data available for AI and analytics, on any cloud. [7] See NY DFS Insurance Circular No. These newer techniques include local interpretable system-agnostic explanations (LIME), Shapley additive explanations (SHAP), or saliency maps. This paper is intended for discussion purposes only and is not intended to serve as a prescriptive roadmap for implementing AI/ML tools or as a comprehensive inventory of risk associated with the use of AI. Microsoft is building an Xbox mobile gaming store to take on We use technology to identify and locate activities of terrorists, including the smart city system. Serpro Consulta CPF - Registration information of Individuals in Brazil. IBM Products Partly as a result of this, leading Chinese technology companies have significant and under-reported dependencies on the United States. With low-cost AI chips, this could be a uniquely attractive, diverse, and rapidly growing set of applications. Stephanie Condon, TPU Is 15x to 30x Faster than GPUs and CPUs, Google Says, ZDNet, April 5, 2017, Andy Patrizio, Baidu Takes a Major Leap as an AI Player with New Chip, Intel Alliance,. Besides reports on its key events and standalone publications such as the Global Competitiveness Report, the Global Risks Report and the 0000003386 00000 n Historically, governments would dominate nuclear, rocket, and comparable technologies and not trust private companies. In explicitly comparing AI to nuclear and rocket technology, Xu appears to be referencing the critical role of AI to the future of national security. Centre for the Fourth Industrial Revolution (C4IR) | Home AI systems that use input from external system(s)/ user(s), interpret the input and perform an action, like classifying the input data. Absent some kind of major change in U.S. policy to increase competitiveness, or a major Chinese economic crisis, Chinas policies likely will be sufficient to ensure that over the next 5 years China secures a defensible competitive advantage across many AI application markets and at least narrows the gap between Chinese and non-Chinese firms in many semiconductor market segments. See, for example, Transforming Paradigms: A Global AI in Financial Services Survey, World Economic Forum, January 2020, available at http://www3.weforum.org/docs/WEF_AI_in_Financial_Services_Survey.pdf. The state shall protect individuals and organizations that support, cooperate with, and collaborate in national intelligence work., Yoko Kubota and Liza Lin, A Chill From Beijing Buffets Chinas Tech Sector,. Examples of newer and perhaps relatively more accurate and sophisticated types of interpretable AI/ML systems include scalable Bayesian rule lists, Explainable Boosting Machines (EBMs), monotonic Gradient Boosting Machines (GBMs), various Bayesian or constrained variants of traditional AI/ML systems or other novel interpretable-by-design systems.[9]. For example, U.S. self-driving car company Waymo (formerly Google) announced that in one year cars had driven 2.5 billion miles in virtual simulators compared with only 3 million miles of real-world roads. I believe it is vital that the U.S. policymaking community similarly prioritize cultivating expertise and understanding of AI developments in China. At the World Peace Forum, Tsinghua Universitys Xue Lan delivered a briefing on Tsinghua Universitys major report on the state of the AI sector in China.34 This study found that China has secured a leading position in the top [AI] echelon in both technology development and market applications and is in a race of two giants with the U.S. It also finds that China is: Chinas assessment of being in the first echelon is correct, though there are important caveats that will be discussed more below. [5] The response to the questions do not reflect future plans of the institutions. The AIDP was officially released by the Chinese State Council, but the advisory committees and authoring individuals included representation from Chinas national security, diplomatic, academic, and private sectors. Global Legal Chronicle Global Legal Chronicle The document explores the possible implementation of the recommendations, previously published by the group, in three specific areas of application: Public Sector, Healthcare and Manufacturing & the Internet of Things. [10] Jie Chen, Deep Insights into Explainability and Interpretability of Machine Learning Algorithms and Applications to Risk Management, JSM 2019 Online, available at https://ww2.amstat.org/meetings/jsm/2019/onlineprogram/AbstractDetails.cfm?abstractid=303053. Artificial Intelligence and Security September 2018. Former Adjunct Senior Fellow, Technology and National Security Program. Generally speaking, three types of discrimination are recognized by federal banking regulators: overt discrimination, disparate treatment, and disparate impact when not supported by a legitimate business justification. This document is meant to be the first of several iterations and further contributions from the AIRS group. . EVM intro: Ethereum Yellow Paper, Beige Paper and Py-EVM. Information Technology. To help building a resilient Europe for the Digital Decade, people and businesses should be able to enjoy the benefits of AI while feeling safe and protected.. Dr. Tan Tieniu stated this explicitly in his November Party Congress speech before Chinas leadership, and Alibaba cofounder Jack Ma publicly announced similar conclusions in April 2018: the market for chips is controlled by Americans, Ma said. At the same time, the recommendations will empower,benefit and protectEuropean citizens. White & Case launches Debt Finance practice in Australia and adds David Kirkland and Mark Wesseldine in Sydney. The Blueprint for an AI Bill of Rights is a guide for a society that protects all people from these threatsand uses technologies in ways that reinforce our highest values. . The first fund ultimately invested 138.7 billion RMB ($20.5 billion) and was followed in 2018 by a second government fund that will reportedly invest 300 billion RMB ($44.5 billion). General Data Privacy Regulation (GDPR), among others. Blowfish A2 Product Overview, Ziyan, January 2019. _ EJVh ,yT]i|#L;}7448sS S)^>[nni~\# pYmjkw|t}kgrk9R_ktn?5f2X7qKU6zK&}y. Their willingness to engage was critical to this report. For a helpful overview of how AI chips are more specialized than GPUs for machine learning, see Kaz Sato, What Makes TPUs Fine-tuned for Deep Learning? Google Cloud blog,August 30, 2018. If such effects are adverse or otherwise perceived as incorrect, both organizations and impacted individuals alike may seek to detect and mitigate the harms created by the AI/ML-based decisions. 0000003122 00000 n National Geographic stories take you on a journey thats always enlightening, often surprising, and unfailingly fascinating. The U.S. ban on ZTE fully demonstrates the importance of independent, controllable core-, high-, and foundational technologies. [11] The advantages of post-processing approaches are that they may not require access to the training process and are thus suitable for run-time environments. Most of the known potential attacks against AI/ML systems could be grouped into one of the following categories: data privacy, data poisoning, and model extraction. Many newer explanation approaches tend to focus on high-fidelity summaries of local system behavior, essentially attempting to describe why an AI/ML system made a decision about a single customer, transaction, or other entity. The European Commission appointed a group of experts to provide advice on its artificial intelligence strategy. Chinese AI chip startups Horizon Robotics and Cambricon have raised hundreds of millions of $USD in venture capital funding at multibillion-dollar valuations.77. Jones Day welcomes Gary Kaplan as partner in Business Restructuring & Reorganization practice. The views expressed in this paper are those of the individual contributors and do not constitute the views of any of the firms with which the contributors are associated or by which they are employed. Third-Party Risk Management McKinsey Quarterly In many cases the products and underlying technologies between commercial AI and military/security AI products are identical or nearly so. Chinese companies and government laboratories are strong in high performance computing and specifically on efficient high performance AI computing. Regulatory bodies have expressed growing interest in AI deployments in the financial industry. Such a coalition may be formalized in a Center of Excellence (CoE), working group, or council, among other examples. James Oleinik, Principal PM Manager, Wednesday, August 15, 2018. [1] AIRS is an informal group of practitioners and academics from varied backgrounds, including technology risk, information security, legal, privacy, architects, model risk management, and others, working for financial and technology organizations and academic institutions. Narahara (Chari) Dingari, PhD, DeutscheBank From these discussions as well as my ongoing work analyzing Chinas AI industry, policies, reports, and programs I have arrived at a number of key judgments about Chinese leaderships views, strategies, and prospects for AI as it applies to Chinas economy and national security. Kevin Fitzpatrick, Wells Fargo The purpose of an inventory is to allow the organization to identify and track the AI/ML systems it has deployed and monitor associated risk(s) (if any). System , , . Detection and Appeal of Incorrect Decisions Mos Zhang, China Puts Education Focus on AI; Plans 50 AI Research Centres By 2020,, Andy Chun, "China's AI Dream Is Well on Its Way to Becoming a Reality,", Gregory K. Leonard and Mario A. Lopez, Determining RAND Royalty Rates for Standard-Essential Patents,, Tim Pohlmann, Who Is Leading the 5G Patent Race?. Anuj Prakash, Model Risk Management, HSBC For instance, the New York Department of Financial Security (NY DFS) discussed [7] the use of external consumer data and information sources in insurance underwriting, noting the potential of leveraging these sources to help establish lifestyle indicators that may inform the review of an application for insurance coverage. Fair AI, nevertheless, may require a human-centric approach. Explanation inconsistency could also rear its head when systems are refreshed. [2] FINRAs Report on the Use of AI in the Securities Industry: https://www.finra.org/sites/default/files/2020-06/ai-report-061020.pdf, [3] Financial Stability Board, Artificial Intelligence and Machine Learning: https://www.fsb.org/wp-content/uploads/P011117.pdf. A commonly cited example is the rapid and widespread adoption of cellular phone technology in countries that had only minimal landline phone adoption. Furthermore, the CoE could maintain engagement with the industry to share and learn best practices. In addition, if the store is more likely to be located in minority neighborhoods, then the system may further exacerbate this effect. Kenneth Kraemer, Greg Linden, and Jason Dedrick, Capturing Value in Global Networks: Apple's iPad and iPhone, ResearchGate, July 2011, Value capture is defined in the report as follows: Within a value chain, each producer purchases inputs and then adds value, which then becomes part of the cost of the next stage of production. Questia. Disparate impact, on the other hand, occurs when a system includes features that lead to disproportionately unfavorable outcomes for a protected class. In order to avoid repeating this disaster, China should learn its lesson about importing core electronic components, high-end general-purpose chips, and foundational software.58. It is unlikely that an automated process could fully replace the generalized knowledge and experience of a well-trained and diverse group reviewing AI systems for potential discrimination bias. Unlike humans, AI systems lack the judgment and context for many of the environments in which they are deployed. Chinas behavior of aggressively developing, utilizing, and exporting increasingly autonomous robotic weapons and surveillance AI technology runs counter to Chinas stated goals of avoiding an AI arms race. In extremely opaque systems, however, neither the developer nor the user may have enough insight to understand how, or even if, the decision is wrong. However, a major technology sector downturn or economic recession would make it difficult for Chinas government and companies to afford the R&D investments necessary to improve competitiveness. It is not intended to be an exhaustive or prescriptive list. Gregory C. Allen is a former Adjunct Senior Fellow at the Center for a New American Security (CNAS) Technology and National Security Program. As AI use advances and becomes more widespread within the industry, AIRS acknowledges that there are multiple ways to govern potential risks and any risk management framework should be tailored to each individual firms unique circumstances. Data as a Cause of Discriminatory AI November 15 2022. They may also be differentially predictive if the systems weights or coefficients do not properly account for class-specific idiosyncrasies. The AI HLEG has worked closely with the European community of AI stakeholders through the AI Alliance. View All Articles & Multimedia. Lee is influential among Chinas technology industry, but not everyone agrees with his theory. accelerate the commercialization of AI technology and results, and create a competitive advantage. Anna Pederson. 3. Existing governance systems in most organizations are designed for processes where there is a high degree of human involvement. Importantly, novel interpretable systems and posthoc explanations are already in use today.[10]. Huaweis HiSilicon subsidiary designed the main semiconductor processor of the P9, including its AI deep learning accelerator element, in-house.64 Indeed, the study arguably understates Chinas value capture in smartphones because it undercounts Chinas software gains. In such circumstances, however, additional or revisions to policies and standards may be necessary to ensure that AI is deployed appropriately. Research into such attacks indicates that, given unlimited ability to query the model, extraction could occur without requiring high levels of technical sophistication and could be accomplished at high speeds. 0000002438 00000 n Central Military Commission Joint Staff, Accelerate the Construction of a Joint Operations Command System with Our Nations Characteristics CMC Joint Operations Command Center, Seeking Truth, August 15, 2016, General Wang Ning, Global Terrorism: Threats and Countermeasures (8. Such numbers indicate that SenseTime has spent hundreds of millions of $USD on computing infrastructure. Armando Lemos, Technology Risk at Wells Fargo (We address this belief further in Section 4.) Inventories might also list key data elements for each AI/ML system, including any feeder systems/models, the owners, developers, validators, and key dates associated with the AI/ML lifecycle. According to Chinas Semiconductor Industry Association (CSIA), Chinese producers are on track to increase their share of domestic consumption from 29 percent in 2014 (the year before Made in China 2025 was announced) to 49 percent by the end of 2019.78 However, most of these gains have been in product segments that do not require the most advanced semiconductors, which remain a large share of the market.79 In its Q4 2018 financial disclosures, TSMC (which has roughly half of the global semiconductor foundry market share)80 revealed that nearly 17 percent of its revenue came from eight-year old 28nm processes, and that 37 percent came from even older processes.81 Chinese manufacturers plan to prioritize those market segments where older processes can be competitive. SenseTime is a major exporter of surveillance technology in government and commercial markets across Latin America, Africa, and Asia. It has grown beyond the original members to around 40 members from dozens of institutions. China, by contrast, has gone from a scientific backwater to a leading player in a long list of scientific fields and technology industries in just two decades. For example, Chinas approach for AI, as outlined in its national AIDP strategy document, is to: Follow the rules of the market . Figure 2 depicts the results of the survey. DJI leads the world in consumer drones with 74 percent market share.35 DJI has innovatively incorporated machine learning technology into its most recent products. The latest Lifestyle | Daily Life news, tips, opinion and advice from The Sydney Morning Herald covering life and relationships, beauty, fashion, health & wellbeing As mentioned above, AI chips can offer potentially superior performance and cost than state-of-the-art GPUs even while using less advanced manufacturing processes.82 The rise of AI chips therefore offers China the chance to combine its highly advanced semiconductor design and AI software sectors to expand market share and competitiveness in the broader semiconductor industry. Security Audit Madam Fus depiction of AI as posing a shared threat to international security was echoed by many other Chinese diplomats and PLA think tank scholars in my private meetings with them. The business uses, regulatory interest and research in artificial intelligence and machine learning (AI/ML) have seen an exponential increase over the last few years. Jeff Ding has pointed out, of the 3462 AI/robotics researchers who signed a Future of Life Institute open letter to ban autonomous weapons, only three were based at Chinese institutions (all were affiliated with the Chinese University of Hong Kong). See Jeffrey Ding, Deciphering Chinas AI Dream, Future of Humanity Institute, Oxford University, March 2018. . Additionally, Chinas CAICT AI and Security White Paper lamented the fact that At present, the research and development of domestic artificial intelligence products and applications is mainly based on Google and Microsoft.45 SenseTime has devoted extensive resources its own machine learning framework, Parrots, which is intended to be superior for computer vision AI applications. For example, combining expanded consumer data sets with new ML algorithms to assess credit quality or price insurance policies, and using AI to offer new and innovative channels to deliver financial services could be a potent way to advance financial inclusion. Data Quality The primary U.S. federal statutes that define illegal discrimination in lending are the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act (FHA); however, lenders are subject to many other federal regulations and state laws addressing fairness. We've developed a suite of premium Outlook features for people with advanced email and calendar needs. Training Data Poisoning Internet industry encounters cold wave: Beijing office rents fell in the fourth quarter, Caixin, December 26, 2018, The relevant passage states: Any organization and citizen shall, in accordance with the law, support, provide assistance, and cooperate in national intelligence work, and guard the secrecy of any national intelligence work that they are aware of. Elsa Kania, "AlphaGo and Beyond: The Chinese Military Looks to Future Intelligentized Warfare." PowerApps, which includes Microsoft Flow, is a high-productivity application development platform from Microsoft. Kjersten Moody, State Farm The mandate of theAI HLEGendedin July 2020 with the presentation of two more deliverables: A practical tool that translates the Ethics Guidelines into an accessible and dynamic self-assessmentchecklist. We have intercepted 1200 terror organizations when still planning an attack. However, recent developments suggest that this centrality may be less irreplaceable than is often claimed. CNAS does not take institutional positions. If another system produces the same unique output for the same inputs, it may point to Intellectual Property theft. . In general, machine learning pipelines contain three possible points of intervention: the training data, the learning procedure, and the output predictions, with three corresponding classes of mitigation algorithms pre-processing, in-processing, and post-processing. Four core components of AI governance are: definitions, inventory, policy/standards, and a governance framework, including controls. Discover the innovative world of Apple and shop everything iPhone, iPad, Apple Watch, Mac, and Apple TV, plus explore accessories, entertainment, and expert device support. Building an encryption strategy, licensing software, providing trusted access to the cloud, or meeting compliance mandates, you can rely on Thales to secure your digital transformation. Most lending institutions employ compliance, fair lending, and system governance teams that review input variables and systems for evidence of discrimination. AI HLEG, 2019, High-Level Expert Group on Artificial Intelligence: Ethics Guidelines for Trustworthy AI, European Commission, accessed: 9 April 2019. AIRS is not advocating for new regulation(s), but merely would encourage readers to monitor existing regulations and their potential applicability to AI. Additionally, Chinese AI chip startup Cambricon reportedly helped with the design of the deep learning accelerator element. China is making significant progress on both points, but the gap in the number of skilled workers is notably large given the scale of Chinas semiconductor industry growth ambitions.89. The Tsinghua University China AI report did a remarkable study of the global AI talent distribution, concluding that by the end of 2017, the international AI talent pool comprised 204,575 individuals, with the United States having 28,536 such individuals and China in second place with 18,232. AIRS plans to continue to build and engage an active community on these issues. The strongest behavioral indication that China might be insincere comes from Chinas April 2018 United Nations position paper,23 in which Chinas government supported a worldwide ban on lethal autonomous weapons but used such a bizarrely narrow definition of lethal autonomous weapons that such a ban would appear to be both unnecessary and useless. Generally, it is difficult to thoroughly assess systems that cannot easily be understood. Dr. Dai is also a professor of computer science at the NUDT College of Computer Science. Total Chinese national and local government spending on AI to implement these plans is not publicly disclosed, but it is clearly in the tens of billions of dollars. A host of factors may result in AI-related illegal discrimination. Three Lines of Defense , ERP And suddenly if they stop selling what that means, you understand. Results of the gap analysis should then lead to the creation of potential new or enhanced controls to mitigate against the identified potential AI/ML risks. - 2 For the large and growing set of AI applications where massive data sets are needed or where synthetic data is viable, AI performance is often limited by computing power.70 This is especially true for the state-of-the-art AI research.71 As a result, leading technology companies and AI research institutions are investing vast sums of money in acquiring high performance computing systems. The U.S. government's recent chip export controls are the latest salvo in the U.S.China rivalry in artificial intelligence. Enterprise customers can also build their own custom line of business applications using the same technology. After more than twenty years, Questia is discontinuing operations as of Monday, December 21, 2020. Among other elements, the plan: In a separate initiative, the MOE also plans to launch a new five-year AI talent training program to train 500 more AI instructors and 5,000 more top students at top Chinese universities.42, The determination and common adoption of international technical standards is a key enabler of technology interoperability and market growth. Similarly, the Tsinghua University China AI Development report finds: Chinas strengths are mainly shown in AI applications and it is still weak on the front of core technologies of AI, such as hardware and algorithm development, Chinas AI development lacks top-tier talent and has a significant gap with developed countries, especially the U.S., in this regard.38. Chinese design firms benefit from access to world-leading Taiwanese semiconductor foundry companies that manufacture semiconductors but do not design them. Running simulations to generate synthetic data is, for many applications, even more computationally intensive. 20 Chinas government has stated that it also will export its next generation stealth drones when those are available.17 Though many current generation drones are primarily remotely operated, Chinese officials generally expect drones and military robotics to feature ever more extensive AI and autonomous capabilities in the future. The sum of the value added by everyone in the chain equals the final product price., As of 2017, 9 percent of Apples iPhone suppliers were Chinese companies. Shanshan Du, China Integrated Circuit Ecosystem Report, SEMI Industry Research and Statistics October 2018, page 5. In this theory, the United States current advantages in stealth aircraft, aircraft carriers, and precision munitions actually would be long-term disadvantages because the entrenched business and political interests that support military dominance today will hamper the United States in transitioning to an AI-enabled military technology paradigm in the future.30 As one Chinese think tank scholar explained to me, China believes that the United States is likely to spend too much to maintain and upgrade mature systems and underinvest in disruptive new systems that make Americas existing sources of advantage vulnerable and obsolete. China Academy for Information and Communications Technology (CAICT) & China Institute of Information and Communications Security, Artificial Intelligence and Security, September 2018. ), Full Translation: Chinas New Generation Artificial Intelligence Development Plan.. The way we approach Artificial Intelligence (AI) will define the world we live in the future. Differential privacy makes data anonymous by introducing random noise to a dataset, which allows for statistical analysis without any personal information being identifiable. AI governance frameworks could help organizations learn, govern, monitor, and mature AI adoption. Synthetic data is not viable for all AI applications, since not all simulators are a perfect proxy for the real world they attempt to model. Chinas July 2017 national AI strategy set a 2020 goal for Chinas AI industrys competitiveness [to] have entered the first echelon internationally. In truth, Chinas leadership already assesses China as having achieved this objective as of mid-2018. While it does not possess any of the worlds most advanced equipment manufacturing companies, China has strong negotiating leverage with foreign companies due to the size and growth of its domestic market. Intelligence strategy and Statistics October 2018, page 5 advanced email and calendar needs but not everyone agrees his. Machine learning technology into its most recent products partner in Business Restructuring & Reorganization practice or coefficients not! At the NUDT College of computer science at the NUDT College of computer science Product Overview, Ziyan January! Not properly account for class-specific idiosyncrasies this could be a uniquely attractive, diverse, rapidly! Governance frameworks could help organizations learn, govern, monitor, and AI... 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