AI Regulation in the China-US Competition Era: A Guide to Fair Global Governance

Introduction The digital age has witnessed an intense rivalry between two major powers: the United States and China. The AI race between the US and China is heating up, with both countries viewing this technology as a catalyst for economic growth, enhanced military capabilities, and strengthening their global strategic positions. While the US leads in AI investments and specific technological advancements, China excels in image recognition, benefiting from its massive population data. However, the US and its allies still dominate in hardware design and production, especially semiconductors crucial for AI computation.

The tension escalates as the US tries to limit China’s access to advanced semiconductors, while China becomes more protective of its data advantage by implementing various cyber and data regulations. Despite scepticism about possible collaboration between these two giants, experts believe there’s room for cooperation in certain AI facets like AI safety. However, failing to achieve this, particularly in the military context, could heighten the risk of armed conflict, highlighting AI’s importance in today’s global dynamics.

So, in this AI-centered battleground, how should the world respond? What should be prioritized in designing global AI regulations?

1. Inclusion and Representation

Every nation, regardless of size, must have a say in shaping global regulations. This isn’t just about ethics but ensuring policies reflect diverse nations’ needs and aspirations, not just the desires of two major powers. In establishing global AI regulations, every country must have an equal right to participate. This guarantees policy mirrors global diversity, taking into account economic balance, cultural diversification, gender representation, age inclusivity, accessibility for the disabled, and inputs from varied educational backgrounds, sectors, religions, LGBTQ+ communities, ideologies, as well as AI developers and users. The goal is to create truly inclusive regulations that cater to diverse global societal needs.

2. Capacity Building

AI can catalyze development. Yet, without appropriate resources, technology, and training, many nations will lag. Global regulations should support technology transfer and capacity building, especially for developing countries. To make AI an inclusive development catalyst, global regulations should encourage the establishment of a Global AI Development Fund, promote educational collaboration, foster technology transfer, urge multinational firms to set up research hubs in developing countries, re-evaluate Intellectual Property Rights policies, and support open-standard technology-based networks for improved tech access in growing nations.

3. Data Sovereignty

In an increasingly digital world, data is wealth. Each nation should control, access, and utilize its citizens’ data without foreign interference. AI regulations should respect digital sovereignty and ensure fairness in data use. To uphold digital sovereignty, countries should adopt robust data protection laws, ensure citizens’ data storage within local data centers, establish independent audit bodies to oversee company compliance with privacy, amplify digital education, mandate algorithm transparency, and encourage international collaboration to set globally recognized data protection standards.

4. Market Equality

Even if the US and China currently dominate the AI industry, innovations from other countries should have equal opportunities in the global market. Regulations should deter monopolistic practices and support healthy competition. To counterbalance the US and China’s AI industry dominance, we need an international regulatory framework that encourages fair competition and transparency. Investing in AI research in developing nations, establishing global interoperability standards, strengthening AI education, and multilateral collaborations are vital steps to nurture an inclusive, fair, and mutually beneficial AI landscape.

5. Transparency and Accountability

Transparency and accountability in AI’s development and implementation are crucial, given its profound impact on various life aspects. Transparency prevents bias, fosters public trust, and ensures accountability. Globally, AI regulatory development should involve collaborations between UN bodies like ITU and UNESCO, international organizations such as the WTO or WIPO can help regulate AI’s trade and intellectual property aspects, tech consortiums like OpenAI and Partnership on AI, and similar initiatives involving tech firms, academics, and other stakeholders can define transparency and ethical standards, with national governments devising comprehensive and effective frameworks.

6. Protecting Human Rights in AI Development

With the rapid advancements in AI, there’s an inherent risk of misuse, especially when it comes to human rights violations. A global regulation must underscore the protection of human rights as a foundational principle in AI development and deployment.

The design and rollout of AI technologies should prioritize human rights, emphasizing algorithm transparency and industry accountability. It’s crucial to have audit mechanisms ensuring that AI is free from biases, along with individual data protection, so everyone has control over their personal information and is shielded from potential infringements. These steps are pivotal to guarantee AI operates for the common good without posing ethical dilemmas.

Conclusion

The technological rivalry between China and America involves billions of dollars in investments and swift innovations. However, this tech war risks fragmenting the digital realm into two poles, with each country setting its benchmarks. Under such circumstances, other nations might feel compelled to choose between these two standards or find themselves caught in between.

An equitable and inclusive AI regulation can prevent the creation of a fragmented “Digital World.” Such regulations should ensure that developing countries also have equal access to cutting-edge technology, education, and opportunities within the AI sector. Moreover, these rules need to account for the diverse cultural, economic, and social facets of every nation.

With this approach, AI is expected to be a force that strengthens inter-country relationships rather than one that divides. Furthermore, international collaboration in AI regulation can lead to broader innovation dissemination, producing more comprehensive solutions for the global challenges we currently face.

Tuhu Nugraha
Tuhu Nugraha
Digital Business & Metaverse Expert Principal of Indonesia Applied Economy & Regulatory Network (IADERN)