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UK Government First to Pilot AI Procurement Guidelines Co-Designed with WEF

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The World Economic Forum, the international organization for public-private cooperation, released the world’s first government procurement guidelines for artificial intelligence (AI). The United Kingdom will be the first to pilot or test these guidelines, potentially accelerating the use of artificial intelligence in the public sector.

Governments want to acquire AI solutions to streamline processes and provide insights into key sectors such as transportation, healthcare and public services. However, officials often lack experience in acquiring such solutions and many public institutions are cautious about harnessing this rapidly developing technology at a time when we are only beginning to understand the risks as well as the opportunities.

Growing public concerns around bias, privacy, accountability and transparency of the technology has added an extra layer of complexity to a potential roll out on a national level. The AI Procurement Guidelines for Governments have been designed help officials keep up with this rapidly developing technology and mitigate the risks.

The guidelines were co-designed by the World Economic Forum’s Artificial Intelligence and Machine Learning team and fellows embedded from UK Government’s Office of AI, Deloitte, Salesforce and Splunk. Members of government, academia, civil society and the private sector were consulted throughout a ten-month development process, which incorporated workshops and interviews with government procurement officials and private sector procurement professionals.

The report provides the requirements a government official should address before acquiring and deploying AI solutions and services. It also provides the questions that companies should answer about their AI development and how the data is used and processed. The guidelines also include explanatory text elaborating on how to implement, key questions to ask and case studies.

“AI solutions hold the potential to vastly improve government operations and administer public benefits to citizens in new ways, ranging from traffic management to healthcare delivery to processing tax forms,” said Eddan Katz, AI Project Lead, World Economic Forum. “These guidelines empower governments and international bodies to set the right policies, protocols, and assessment criteria that will facilitate effective, responsible and ethical public use of AI. Once standards are set and widely adopted, we could see new policies emerge to help navigate an uncertain ecosystem.”

“How government buys services for taxpayers has an impact far wider than the public sector – by taking a dynamic approach we can boost innovation, create competitive markets and support public trust in artificial intelligence,” said Minister for Digital Matt Warman. “These new guidelines place the UK at the forefront of procuring AI and will help the public sector better serve the public, make it easier for firms bidding for new contracts and set a world standard in how governments work with artificial intelligence.”

“New uses of AI that are of interest to government will continue to emerge and will bring with them both benefits and risks,” Katz said. “It is important that governments prepare for this future now by investing in building responsible practices for how they procure AI.”

By leveraging the role of governments as market actors, the AI guidelines for procurement could have a significant impact on the shaping of norms throughout the industry of AI solutions providers. The standardization of ethics and risk management expectations will likely extend across other sectors in the market.

The World Economic Forum’s Unlocking Public Sector AI project is bringing together a multistakeholder community to empower government officials to more confidently make responsible purchasing decisions. Over the next six months, governments around the world will test and pilot these guidelines. Further iterations will be published based on feedback learned on the ground.

Additional quotes:

“Splunk has supported the development of these guidelines and worked closely with the WEF and UK Government,” said Lenny Stein, Senior Vice President, Global Affairs, Splunk. “We will help pilot them in the UK and, believe the guidance will enable Governments across the world, transform citizen services and deliver ethically sound and beneficial AI based solutions.”

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Artificial intelligence: Tackling the risks for consumers

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Artificial intelligence and automated decision making processes can pose certain threats to consumers. Find out how the European Parliament wants to protect them.

What is artificial intelligence and why can it be dangerous?

As learning algorithms can process data sets with precision and speed beyond human capacity, artificial intelligence (AI) applications have become increasingly common in finance, healthcare, education, the legal system and beyond. However, reliance on AI also carries risks, especially where decisions are made without human oversight. Machine learning relies on pattern-recognition within datasets. Problems arise when the available data reflects societal bias.

Artificial Intelligence in decision-making processes

AI is increasingly involved in algorithmic decision systems. In many situations, the impact of the decision on people can be significant, such as access to credit, employment, medical treatment, or judicial sentences. Automated decision-making can therefore perpetuate social divides. For example, some hiring algorithms have been found to be biased against women.

How to protect consumers in the era of AI

The development of AI and automated decision-making processes also presents challenges for consumer trust and welfare. When consumers are interacting with such a system, they should be properly informed about how it functions.

The position of the Parliament
In a resolution adopted on 23 January, the internal market and consumer protection committee urges the European Commission to examine whether additional measures are necessary in order to guarantee a strong set of rights to protect consumers in the context of AI and automated decision-making.

“We have to make sure that consumer protection and trust is ensured, that the EU’s rules on safety and liability for products and services are fit for purpose in the digital age,” said German Greens/EFA member Petra De Sutter., chair of the internal market and consumer protection committee.
Next steps

MEPs will vote on the  resolution in mid February. After that it will be transmitted to the Council and the Commission. The Commission should present its plans for a European approach to AI on 19 February.

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APEC Advances Digitization of the APEC Business Travel Card

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Officials from APEC member economies break new ground in digitizing the APEC Business Travel Card scheme, seeking to modernize the process and make it easier for cardholders in the region to travel with the development of a mobile application.

The APEC Business Travel Card (ABTC) scheme facilitates short-term business travel within the APEC economies by streamlining the entry process at ports of entry within the region. Approved applicants are issued with a card that serves as the entry authority to fully participating economies.

“We continuously seek to improve the system and make it easier and more secure for cardholders to travel around the region,” said Kimberlee Stamatis, Convenor of the APEC Business Mobility Group who oversees the scheme.

The mobile application will include security features such as user verification, the use of watermarks and disabling of screenshots within the mobile application to ensure authenticity of the cardholder.

“Additional security features for the mobile application further hinder fraudulent replication and misuse, and protect the personal details of APEC Business Travel Card holders,” she added.

Additionally, the mobile application will provide cardholders and airport officers real-time information on the status of the travel card. Cached information will also be accessible for a period, in the event that the holder is not able to go online while they are traveling.

“The service will be offered to new applicants from fully participating economies, and we are exploring ways to enable existing cardholders to request the mobile application when they apply for a card renewal, which is required every five years,” Stamatis explained.

Further discussions are underway to ensure that the mobile application caters to the needs of both cardholders and airport officials. The APEC Business Mobility Group will work on the pilot version of the application with the expectation to launch it in November 2020, during APEC Economic Leaders’ Week in Malaysia.

Depending on member economies’ preference for either the mobile application or physical card, the service is expected to be ready for use in early 2021.

Nineteen APEC economies are fully participating members to the ABTC scheme: Australia; Brunei Darussalam; Chile; China; Hong Kong, China; Indonesia; Japan; Korea; Malaysia; Mexico; New Zealand; Papua New Guinea; Peru; the Philippines; the Russian Federation; Singapore; Chinese Taipei; Thailand; and Viet Nam; Canada and the United States are transitional members.

Transitional members’ cardholders will not be able to use the mobile application, however, their existing processes will remain unchanged.

The APEC Business Travel Card scheme reduces travel costs between APEC economies by 38 percent. Businesses pay 27 percent less in application fees and 52 percent less in immigration processing.

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Preparing Dushanbe for a New Digital Era

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 “Preparing Dushanbe for a New Digital Era” was the theme of a workshop held on February 4th and hosted jointly by the Government of the Republic of Tajikistan, the Hukumat of Dushanbe City, the State Unitary Enterprise (SUE), “Smart City Dushanbe” under the Hukumat of Dushanbe City, and the World Bank. Participants included leading Korean experts in the field of digital transformation and smart cities, as well as high-level Government representatives of the Republic of Tajikistan, development partners, the private sector, and civil society. 

“Living in the era of digital transformation has many benefits and challenges. As this is a high priority for us, we are expanding our work with development partners on digital transformation. South Korea is the first country that comes to mind as an example of best practices and expertise in the deployment of smart cities and the ability to increase the vitality of urban areas. For us, Korea’s experience gained during almost three decades of building smart cities is extremely valuable,” said Yusuf Majidi, Deputy Minister of Finance of Tajikistan. 

Smart city technologies allow city officials to interact directly with both the community and city infrastructure, and to monitor what is happening in the city and how it is evolving. ICT is used to enhance the quality, performance, and interactivity of urban services, reduce costs and resource consumption, and increase interaction with citizens. Smart city applications allow for better management of urban flows and enable real-time responses. In doing so, a “smart city” increases the efficiency of public services provided by city authorities, uses scarce resources more effectively, and improves citizens’ quality of life. 

“In this process, the Government is an enabler and a regulator, but digital transformation and smart cities can only be delivered with the active participation of the private sector, and by ensuring tangible benefits for the private sector,” added Jan-Peter Olters, World Bank Country Manager in Tajikistan. 

The keynote speaker was Dr. Jong-Sung Hwang, Master Planner, Busan National Pilot Smart City, and Lead Researcher at the National Information Society Agency (former Chief Information Officer of Seoul), who shared the Republic of Korea’s extensive experience in developing smart cities. Oleg Petrov, Senior Digital Development Specialist at the World Bank, provided an update on the proposed Digital CASA Tajikistan project and its role in supporting the Government to build the foundations for a digital economy and the “Smart City Dushanbe” initiative.

This event was a key milestone in developing the Smart City initiative in Tajikistan, a key element of the Digital Economy 2040 Concept and Digital CASA Tajikistan Project. The World Bank confirmed its commitment to providing support to Tajikistan in building the required infrastructure to increase Internet bandwidth and speed, support the required adjustment and modernization of the institutional telecommunications environment, and develop the most critical applications aimed at increasing the efficiency and transparency of public services.

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