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China Global AI Governance Initiative Impacting Global Efforts and Concerns


03 July, 2024

The Emergence of Generative AI and Its Governance Implications

The rapid progress in generative artificial intelligence (AI) technologies has swept across the global imagination, sparking both awe and concerns among various stakeholders. Governments and policymakers remain cautious, contemplating how to manage the control of AI tools by a spectrum of actors, and anticipating the far-reaching impact on societies both within and beyond nation-state boundaries. Agreement among AI experts is clear: a collective global effort is essential to harness AI’s benefits while mitigating its potential harm.

Recent geopolitical moves – China unveiling its Global AI Governance Initiative closely followed by a UK-hosted AI Safety Summit and the United States tightening export controls over computing technologies – provoke debate about the prospects of harmonized multinational approaches to cultivating trustworthy, inclusive, and environmentally conscious AI systems.

The role of regional coordination in AI governance is particularly pronounced in Asia. Currently grappling with its bleakest economic forecast in decades, Asia’s pathway to inclusive growth lies in reshaping the service sector to leverage the burgeoning digital revolution, which includes the integration of cutting-edge AI systems. Synchronized strategies across Asia are pivotal not only for fostering AI advancements but also for diminishing the acute risks born from the strategic rivalry between the United States and China. Such measures could alleviate the pressure on smaller nations from taking sides in geopolitical contests.

Nonetheless, effective governance of artificial intelligence is laden with inherent challenges. One such challenge is the disproportionate control held by a few technology behemoths from the United States and China over AI inputs. Moreover, governments frequently exhibit a tendency to hoard and shield valuable digital assets. These measures often overlook the systematic exclusion of underrepresented groups – women, rural communities, and indigenous peoples – from accessing AI’s benefits.

Despite stark differences in state perspectives and capabilities regarding AI-related challenges, Asia has the fundamental ingredients for creating a cohesive governance framework. The region possesses an array of dynamic digital policy instruments and industry engagement approaches, ripe for enhancement and versatile application.

One of the foremost issues in AI governance in Asia is the near-monopoly enjoyed by select US and Chinese technology infrastructure companies over crucial AI inputs. The remarkable initial performance of large language models (LLMs) demonstrates their potential as the foundational infrastructure underpinning AI applications. However, the reliance of LLMs on data and computation-intensive machine learning processes remains a mainstay exclusive to the most affluent companies, hinting at a concerning ‘winner-takes-most’ ecosystem. This status quo allows AI front-runners to exponentially strengthen their hold and presents obstacles for new entrants striving for competitiveness while also challenging public authorities in maintaining system transparency and accountability.

Further reinforcing power over AI inputs, various Asia Pacific governments are focused on safeguarding their own digital assets through national policy frameworks. Measures promoting data localization impede access to essential training datasets, hinder the innovation ecosystem, and risk fragmenting cybersecurity protocols. This trend is observable even in trade agreements like the Regional Comprehensive Economic Partnership (RCEP), which permits conditional data localization for national security reasons.

The United States has adopted a proactive stance, reflected in onshore investment in graphics processing units (GPUs), invigorating AI innovation ecosystems, and export controls aimed at restricting high-end GPU sales to China. This represents a strategic move to cement the AI superiority of US technology firms through data localization.

Lacking a robust regional governance model to counter these localization trends, nations such as China, India, and Indonesia might reciprocate, potentially leaving smaller and less affluent countries with limited opportunities to enter the AI market. In Southeast Asia, the gaps in AI readiness pose a risk of transforming broader digital divides into ‘algorithmic divides.’

Despite notable regional disparities in internet access, digital capacity, and legislative preparedness, a collective approach among governments, capital providers, small- and medium-sized enterprises (SMEs), and civil society can strike a balance against concentration, localization, and exclusion in AI systems.

Addressing concentration might involve pursuing innovative data ownership paradigms that foster equity, such as exploring data cooperatives or unions. Capital providers can aid in the cultivation of community-centric and SME-driven AI systems, thereby lessening dependence on large-scale proprietary AI models and central cloud infrastructures.

For regional coordination of third-party AI oversight, leveraging existing national policy frameworks can prove foundational. Initiatives like Singapore’s AI Verify Foundation showcase promising public–private collaborations that broaden stakeholder participation in AI systems.

To neutralize localization tendencies, revising existing trade accords and scrutinizing national security exceptions in multilateral trade regulations may be prudent. Asia Pacific countries could use platforms such as the World Trade Organization’s e-commerce joint initiative to champion their interests.

Lastly, to conquer exclusion, regulators alongside ASEAN and Pacific Island nations can direct efforts to refine regulations and articulate coherent AI strategies. Vital support for equitable regional AI ecosystem participation may stem from SME financing and targeted digital skills development initiatives.

In conclusion, there are no straightforward solutions to the conundrum of concentration, localization, and exclusion in AI systems. Nonetheless, synergetic governance strategies can cultivate a fertile environment for diverse regional stakeholders to responsibly guide AI systems while enhancing the transparency of associated risks. As AI technologies advance at a brisk pace, global governance must follow suit, rapidly adapting to the ever-evolving tech landscape.