Brazil launches national AI strategy

Brazil has launched a new artificial intelligence (AI) strategy, which aims to balance ethical use of the technology while boosting research and innovation in the sector.

Following a public consultation, which ran from December 2019 to March 2020, the strategy sets out six objectives. These include to: develop ethical principles that guide responsible use of AI; remove barriers to innovation; improve collaboration between government, the private sector and researchers; develop AI skills; promote investment in technologies; and advance Brazilian tech overseas.

Since Canada became the first country to adopt a national AI strategy in 2017, other governments have raced to develop policies that will reap the benefits of AI while curbing its harms. The OECD now tracks over 60 countries’ AI policy frameworks.

Brazil’s strategy notes that the state needs to encourage entrepreneurship in the sector. “In 2019, while the US invested US$224 million in AI startups, and China US$45 million, Brazil invested only $1 million,” it said.

Trust and ethics

Brazil has adopted the OECD’s five principles for responsible AI: inclusive growth, sustainable development and wellbeing; human-centered values and equity; transparency and responsible disclosure; robustness, security and safety; and accountability.

The strategy is organised into nine pillars or axes. The first pillar – “legislation, regulation, and ethical use” – is thematic and ensures that human rights are safeguarded and that strong regulatory frameworks are established. This includes a commitment to build ethical requirements into tenders for AI-driven solutions.

Another pillar – “qualifications for a digital future” – aims to “prepare current and future generations to cope with the changes and impacts of AI”. The strategy proposes a national digital literacy programme for students, and tech training for teachers, for example.

And a third pillar focuses on how AI can be applied to government for the benefit of citizens, including a commitment to implement AI in at least 12 of Brazil’s federal public services by 2022.

Big opportunities

The strategy is also ambitious about the possible commercial benefits of doubling down on AI.

One pillar of the strategy, for example, aims to identify productive sectors — such as financial services and the law — and applications, where AI would benefit to industry. It proposes fostering links between AI start-ups and SMEs.

And another pillar – “research, development, innovation and entrepreneurship” – points out that Brazil has a good national distribution of AI experts and practitioners, but that they mostly work in academia or the public sector, rather than in private tech firms.

Source: Global Government Forum, article by Josh Lowe, 13 April 2021

Korea Customs Adopts Blockchain Based Clearance for Fraud and Smuggling Prevention

Korea Customs Service logoThe Korea Customs Service (KCS) has developed a customs clearing system powered by blockchain technology and artificial intelligence to prevent fraud and smuggling in South Korea and is enlisting importers and exporters to try out the new system.

The initiative is a response to a huge import/export and e-commerce boom in the country. The commissioner of the Korea Customs Service (KCS) Kim Yung-moon said back in March: “Adopting new technologies to respond to the ‘fourth industrial revolution’ is an overriding agenda for us as trade form is becoming more complicated.”

The blockchain-based customs clearance platform has enlisted five groups and over 50 exporters as well as five working groups and ten Singapore- and Vietnam-based importers for the test-run.

Improving Certificates of Origin

According to KCS, the volume of trade transactions involving imports and exports in South Korea grew eight-fold from 3 million to 27 million from 1990 to 2017. The new volumes call for improved efficiency in customs clearing. The new blockchain-based data analysis center is expected to increase accuracy and timeliness as well as helping to identify contraband and improve the issuance of Certificates of Origin (CO). A Certificate of Origin is a standard requirement in the shipping industry that contains information about a product’s country of origin and destination and helps to determine the product’s categorization for import tariffs.

The system will use X-rays powered by artificial intelligence to screen and examine high-risk items. It will use blockchain technology to run information networks to connect nodes on the supply chain and to share real-time information that will help in preventing cross-border fraud.

Should everything go according to plan, the Korea Customs Service (KCS) will eventually apply the technology to all its other services. The outcomes of the test will be laid bare this coming Tuesday at Seoul’s central customs office.

Source: Bitrates.com, article by Tom Nyarunda, 14 May 2018

Globalisation to give way to “localisation”

global-local

Global trade has reached its peak and globalisation is giving way to localisation, which is one of the most “profound changes” currently facing the global economy, says Paul Donovan, global chief economist at UBS Wealth.

Accounting for about a quarter of the world’s GDP, global trade is at a record high. “This is as good as it gets. What we are now starting to see is localisation returning to the manufacturing sector,” Donovan said on Tuesday, speaking at a Sasfin Wealth event.

Advances in robotics and artificial intelligence, collectively referred to as the fourth industrial revolution, mean that factories are mechanising, and are placed closer to companies’ consumer markets.

Swedish retailer H&M is using robotics, manufacturing most of its clothing in Europe, not Asia, enabling it to respond to consumer demand more effectively, Donovan said.

This allows the fast-fashion front-runner to quickly respond to consumer demand and even unseasonal weather.

“The fourth industrial revolution will dramatically alter investment, economics and society.”

At SA’s recent inaugural Singularity University event, disruption innovation expert David Roberts said that 40% of the S&P 500 companies would disappear in the next 10 years as exponential technologies disrupted a host of industries. The average lifespan of an S&P 500 company had decreased from 67 years to 15 years, he said.

While only about 9% of jobs would disappear altogether, automation and digitisation would affect about 40% of jobs, said Donovan. This would require people and companies to adapt to new ways of doing things.

“If your university degree is reliant on memorising a textbook, you are a low-skilled worker. We need companies and countries with workforces that are flexible.”

Donovan predicted a return to the imperial model of trade, where raw materials and intellectual property were imported, while “everything else” happened close to the consumer. “Raw materials will still be globalised, but finished products will be declining as a force for global trade in the years ahead.”

Source: Originally published in Business Day, Ziady. H, September 6, 2017. Globalisation gives way to localisation, in profound change, UBS economist says.