Responsible AI & National AI Strategies

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Responsible AI & National AI Strategies European Union Commission Dr. Anand S. Rao Global Artificial Intelligence Lead

Today s discussion 01 02 Opportunities in Artificial Intelligence Risks of Artificial Intelligence 03 National AI Strategies & Regulations 04 AI Not-for-Profit Foundations 05 Recommendations

01 Opportunities in Artificial Intelligence

The growing sophistication of AI and machine learning technologies are transforming our lives both as a consumer and as an enterprise. Sense Artificial Intelligence is becoming ubiquitous intelligence with the ability to see, hear, speak, smell, feel, understand gestures, interface with your brain, and dream Think AI is helping us do tasks faster, better and cheaper Automated Intelligence; helping us make better decisions Augmented Intelligence, or even taking over what we do Autonomous Intelligence Act Artificial Intelligence is equaling or surpassing humans in a number of other tasks playing games, driving cars, recommendations (movies, books, finance, research), etc.

Artificial Intelligence: Manual, Cognitive, Creative + Human in the loop No human in the loop AI is helping us do tasks faster, better and cheaper Automated Intelligence; helping us make better decisions Assisted & Augmented Intelligence, or even taking over what we do Autonomous Intelligence Hardwired / specific systems Adaptive systems Assisted Intelligence Augmented Intelligence 2 Automated Intelligence 1 Autonomous Intelligence 3 4 PwC New Services PwC & Emerging New Services Tech 5

AI covers a wide range of capabilities that spans the foundational, cognitive, system, and sensory layers. What is Artificial Intelligence? Artificial Intelligence can be defined as the theory and development of systems that can continuously sense its environment, think, make decisions, and take actions that influence the environment to achieve its goals. Natural Language Audio & Speech Machine Vision Navigation Visualization SENSORY LAYER Robotic Process Automation Deep Question & Answering Machine Translation Collaborative Systems Adaptive Systems BEHAVIORAL LAYER Knowledge Representation Planning & Scheduling Reasoning Machine Learning Deep Learning COGNITIVE LAYER Statistics Econometrics Optimization Complexity Theory Computer Science Game Theory FOUNDATIONAL LAYER

Global GDP uplift due to AI ($ in trillions) The AI Revolution is here, and goes beyond automation; huge opportunity exists for both productivity & consumption gains. Global GDP Impact of AI through 2030 2030 IMPACT: $15.7T Consumption Contribution: 60% Productivity Contribution: 40% Are you ready to exploit the opportunities from AI & overcome the challenges? Source: Sizing the Prize, World Economic Forum, Dalian, 2017, PwC.

02 Risks of Artificial Intelligence

Some leaders in industry and science are wary of the rapid adoption of AI and the risks posed by AI I m increasingly inclined to think that there should be some regulatory oversight, maybe at the national and international level, just to make sure that we don t do something very foolish. Elon Musk The automation of factories has already decimated jobs in traditional manufacturing, and the rise of artificial intelligence is likely to extend this job destruction deep into the middle classes, with only the most caring, creative or supervisory roles remaining. Stephen Hawking

AI Risks fall under six broad categories with varying impact on individuals, businesses and society Societal Risks Risk of Autonomous Weapons proliferation Risk of intelligence divide Economic Risks Job displacement risks Winner-takes-all concentration of power risk Liability risk Reputation risk Ethical Risks Lack of Values risk Value Alignment risk Goal Alignment risk Economic Risks 5 6 Societal Risks Ethical Risks Artificial Intelligence Risks 4 1 Performance Risks Control Risks 2 Security Risks 3 Performance Risks Risk of Errors Risk of Bias Risk of Opaqueness or black box risk Risk of Explainability Risk of stability of performance Security Risks Cyber intrusion risks Privacy risks Open source software risks Control Risks Risk of AI going rogue Inability to control malevolent AI

03 National AI Strategies & Regulations

A number of major economic powers are launching longterm AI strategies and initiatives UAE UAE Strategy for Artificial Intelligence (October 2017) Germany Ethics Commission: Automated and Connected Driving (June 2017) United Kingdom Growing the Artificial Intelligence Industry in the UK (October 2017): Recommendations to o Improve access to data o Maximize UK AI Research o Improve supply of skills o Support uptake of AI Germany 5 6 UAE United Kingdom Artificial Intelligence Risks 4 1 USA Japan 2 China 3 USA Unmanned Aircraft Systems (UAS) (Oct 2017) Big Data: A Report on Algorithmic Systems, Opportunity, and Civil Rights (May 2016) AI, Automation, and the Economy (Dec 2016) Preparing for the Future of Artificial Intelligence (Oct 2016) China Next generation AI Development Plan (July 2017) with key focus areas and key guarantee measures addressing the Science & Technology as well as regulations and competitive policies Japan Artificial Intelligence Technology Strategy (March 2017) New Robot Strategy (February 2015)

04 Artificial Intelligence Not-for-Profit Foundations

A number of major economic powers are launching longterm AI strategies and initiatives OpenAI December 2015 A non-profit AI research company, discovering and enacting the path to safe artificial general intelligence. 1 Future of Life Institute March 2014 Focused on building Safe AI Systems and also broader ethical considerations DeepMind Ethics & S0ciety Principles October 2017 Explore and understand the real-world impacts of AI: (a) to help technologists put ethics into practice, and (b) to help society anticipate and direct the impact of AI so that it works for the benefit of all AI Now October 2017 Launched at NYU as the first University-based research institute focused on the social implications of AI. DeepMind Ethics & Society Principles 5 6 OpenAI AI Now AI Not-for-Profit Foundations 4 Future of Life Institute Partnership on AI 2 WEF Center for 4IR 3 WEF Center for Fourth Industrial Revolution January 2017 Focus on building sustainable AI solutions and maximizing the benefits to the entire society Partnership on AI September 2016 Established to study and formulate best practices on AI technologies, to advance the public's understanding of AI, and to serve as an open platform for discussion and engagement about AI and its influences on people and society

05 Recommendations

Responsible Artificial Intelligence We define Responsible Artificial Intelligence, as the combination of building Robust AI systems that will engender trust in today s AI system as well as work towards the development of AI that will be beneficial to society today and in the future. Robust Artificial Intelligence, is concerned with the verification, validation, security and control of AI systems Reduce or eliminate software risks Reduce or eliminate security risks Reduce or eliminate control risks Beneficial Artificial Intelligence, is concerned with maximizing the social benefit of AI Reduce or eliminate societal risks Reduce or eliminate ethical risks

A comprehensive EU AI Strategy should include the best elements of all the other national AI strategies 1. Specialized AI Technologies: Strategies that are specific to key AI technologies including industrial and service robots, drones, autonomous vehicles (e.g., Japan and Germany) 2. Strategies that are specific to foster key EU industries in AI manufacturing, services, health, agriculture, etc. (e.g., Japan) 3. Guidelines on ethics for autonomous vehicles, drones, industrial robots etc. (e.g., Germany) 4. Strategies for basic AI R&D across three time horizons now till 2030 (e.g., US, China, Japan) 5. Strategies for data, skills, research, and AI adoption (e.g., UK) 6. Strategies for automation, education, retraining, and social security 7. Regulations for Robust AI

Thank you. Get in touch. Dr. Anand S. Rao PwC Global Artificial Intelligence Lead Email: anand.s.rao@pwc.com Twitter: @AnandSRao 2017 PwC. All rights reserved. Not for further distribution without the permission of PwC. PwC refers to the network of member firms of PricewaterhouseCoopers International Limited (PwCIL), or, as the context requires, individual member firms of the PwC network. Each member firm is a separate legal entity and does not act as agent of PwCIL or any other member firm. PwCIL does not provide any services to clients. PwCIL is not responsible or liable for the acts or omissions of any of its member firms nor can it control the exercise of their professional judgment or bind them in any way. No member firm is responsible or liable for the acts or omissions of any other member firm nor can it control the exercise of another member firm s professional judgment or bind another member firm or PwCIL in any way. PwC s Digital Services