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Viraj Patel

The Balancing Act: The Importance of Regulating AI in the Asia-Pacific Region

Updated: May 12, 2023


It is hard to imagine explaining to someone from 20 years ago how technology has transformed our world. From touch-screen phones to social media to Zoom meetings, our daily lives have been revolutionized by digital technology. The Asia-Pacific region has played a critical role in the global technology industry during the last decade, accounting for 52 % of global growth in the revenue of technology companies between 2006-2018.[7] The region's rapid digital advancements have transformed the way we work and live, setting up the stage for the next wave of innovation.


Now we are on the cusp of a new era of technological development: Artificial Intelligence (AI). This transformative technology utilizes machine learning mechanisms to perform tasks, by identifying patterns and making predictions based on large amounts of data giving rise to capabilities such as; generating novel texts, identifying and differentiating objects, engaging in human-like conversations and creating programmable code. AI can create a Shakespearean sonnet that was never written or provide you with a van Gogh piece that was never painted.[4]


As we continue to explore the innovative applications of AI technology, the possibilities seem endless. Nevertheless, its credibility to supplant conventional practices in industry and education will be challenged.


The AI Revolution: How Asia-Pacific is Leading the Way"

AI presents opportunities for innovators and entrepreneurs to unlock in the Asia-Pacific new levels of creativity, efficiency, and productivity, paving the way for a future of unprecedented economic growth and technological progress. Segritech is an AI organization based in India and is a strong example of the application of innovative Asian-Pacific AI technology. Segritech uses AI technology to tackle the grading problems of fresh fruits and vegetables by decreasing the major inefficiencies in current agricultural grading in developing countries, their AI tools remove the need for expert labour grading and are designed to work specifically with farmers, functioning offline and on minimal power for maximum efficiency.[10]


The AI Industry in the Asia-Pacific promises exponential economic growth, opening up opportunities for startups and investors to capitalise on this boom. The International Data Corporation (IDC) reports that spending for AI-centric systems will grow to $49.2 billion in the Asia-Pacific by 2026. Compound annual growth rates are forecasted to increase to 23.7% between 2021-2026, furthermore that by 2026 the top 5 AI technologies in the Asia-Pacific will increase from $8.3 billion to $18.5 billion.[5]


We are witnessing how emerging AI technologies from the Asia-Pacific can leave everyday tasks, in the past. For example, Trax, a Singapore-based startup utilises AI technology to improve the retail experience by analysing store shelves and tracking inventory, saving time and money for retailers as well as providing a better shopping experience for customers.[13]

Innovative applications of AI can also aid industries that are riddled with inefficient practices, such as transport, construction and healthcare.


Take for example: Perceptra, a Thai-based startup that uses an AI platform, Inspectra, to deliver radiologist-level image analysis in real-time, with the ability to detect deadly diseases early, consequently saving long-term treatment costs, providing accessible healthcare and decreasing the intense workload of doctors.[8]


The rise of transformative technologies from the Asia-Pacific provides us a glimpse into a future where AI-driven innovation can enhance the productivity, creativity, and growth for businesses and individuals alike.


Emerging AI Technologies in Asia-Pacific: Regulatory Challenges

Source-AI Truth Machine / LIT Law Lab, Johannes Kepler University (AT)


However, the rapid rise of AI technology in the Asia-Pacific raises questions on how to ensure successful implementation of A.I. into different aspects of our lives. Jessie Cai Danqing , Associate Research Director in Big Data & Analytics for IDC Asia/Pacific, warns that “This technology market is fast approaching, if not already at the crossroad of development, depending on how well it can navigate the associated trustworthiness, accountability, and IP matters, now exacerbated by the revolutionary progress of and surged demand to try out generative AI”. As we step into the future, it is vital that we take the necessary steps for AI technologies to be developed and implemented with consideration of its social, legal and ethical impacts on society, to ensure that the technology is safe for users to engage with as well as to minimize any long-term adverse effects. Regulating AI technology is essential to setting industry standards and promoting the development of safe AI technologies.


Without the regulation of AI technology, we open the door for it to be used for malicious intent. Hostile AI technology is harming the general public, for example by improving scams. Cybersecurity firm Darktrace warned that there has been an increase in criminals using AI-enhanced scams. The “linguistic complexity, including text volume, punctuation and sentence length among others, have increased,” the company commented.[12] The current lack of regulation and oversight have resulted in AI-enhanced scams proliferating and causing vulnerable users to be more susceptible to exploitation by cybercriminals. Creating a safe online space that the general public can participate in is essential for beneficial AI technology to be successful.


Additionally, AI technology is being used to perpetuate misinformation. Recently AI images circulated online of Donald Trump resisting arrest, while other AI tools have been used to imitate the voices of President Joe Biden and other political figures[11].The Global System for Mobile Communications Association also reported in 2021 that misinformation in the Asia-Pacific , included conspiracy theory topics related to COVID-19 and 5G.[3] AI's can undermine informed decision making process via its capacity to generate misinformation, severely harming democracy by eroding the ability to distinguish fact from fiction. Protecting our democracy through regulation is crucial for a functional progressive society that aims to support the booming technological industry.


Regulating AI technology can play an important role when managing private and securing data in commercial industries such as finance and insurance. Srikanth Venkatesan, Asia-Pacific head of insurance at Cognizant, who is at the forefront of adopting new technologies, commented: “With the explosion of data around us, and blurring lines between private and secured data and public and unsecured data, it is important for the insurance industry to keep its fundamental promise of trust intact while leveraging AI.”[6]Successfully integrating AI models into commercial industries involves governments and businesses protecting consumers’ data as well as being held accountable when infringing on consumer rights.

Although it can be argued that deregulating AI systems is necessary to promote innovation and creativity, the potential risks and consequences of such deregulation far outweigh any perceived benefits. The lack of necessary safeguards and protections would leave vulnerable communities at risk of falling victim to scams, compromise our personal and secure data, and undermine the foundations of our democratic society. It is imperative that regulatory measures be put in place to ensure the responsible development and use of AI technologies.


Regulation of AI involves designing legal and ethical frameworks that allow startups and entrepreneurs to engage and explore this exciting transformative technology, but also provide protections for businesses and individuals. Currently, Australia operates under Australia’s Artificial Intelligence Ethics Framework which outlines principles of developing secure and reliable AI, and how to apply those principles,[9] which outlines principles of developing secure and reliable AI, and how to apply those principles. In a similar vein, the AI Asia Pacific Institute encourages sustainable development of AI and addresses the social, legal and ethical risks with the technology.[1] While these frameworks display promise , the lack of enforceable legislation to protect businesses and individuals allows the use of malevolent AI technologies to proliferate. While these frameworks display promise, the lack of enforceable legislation to protect businesses and individuals allows the use of malevolent AI technologies to proliferate. It is urgent to advocate for legislation that effectively regulates the AI Industry, and actively invest in preventing these malicious practices. Governments have already acted or proposed measures to mitigate the risks to security posed by AI technologies. Recently, the Japanese government has recently announced its endorsement of the use of generative AI. It is also promising to address regulations surrounding the technology.[2] Given that such announcements are likely to become more common, it is crucial to establish enforceable regulations and cement them through legislation.


This new era of technology can bring us the opportunity to drastically improve our daily lives: by providing more accessible services, decreasing industry inefficiencies, and promoting sustainable practices. But we also have a duty to ensure that these changes come with the essential safeguards that allow us to engage and interact with technology safely.


By Viraj Patel

11/05/2023

Contributors- David Cao, Elizabeth Pham, Robert Elkerton







Bibliography

[1] Callum Hamilton, Samantha Jack , Ross Burrell 2021 Trustworthy Artificial Intelligence in the Asia-Pacific Region. AI Asia Pacific Institute (AI Asia Pacific Institure., July 2021 2021). https://aiasiapacific.org/wp-content/uploads/2021/07/2021-Trustworthy-Artificial-Intelligence-in-the-Asia-Pacific-Region.pdf.

[2] Kantaro Komiya, Andrew Heavens. "Japan Supports Industrial Use of Generative AI, Pm Says." (2023). Accessed 8/04/2023. https://www.reuters.com/technology/japan-supports-industrial-use-generative-ai-pm-says-2023-04-25/.

[3] Kenechi Okeleke, James Robinson, Jeanette Whyte, Natasha Jackson, Christiaan Segura. Exploring Online Misinformation and Disinformation in Asia Pacific. Th Global System for Mobile Communications Association (07/2021 2021). https://www.gsma.com/asia-pacific/wp-content/uploads/2021/07/190721-Exploring-misinformation-in-Asia-Pacific-1.pdf.

[4] Misha Ketchell. "We Taught an Ai to Impersonate Shakespeare and Oscar Wilde – Here’s What It Revealed About Sentience." (2022). Accessed 6/04/2023. https://theconversation.com/we-taught-an-ai-to-impersonate-shakespeare-and-oscar-wilde-heres-what-it-revealed-about-sentience-184969.

[5] Miguel Carreon, Michael De La Cruz "IDC: AI Spending Will Rise over $46 Billion by 2026 in Asia/Pacific*." (2022). Accessed 6/04/2023. https://www.idc.com/getdoc.jsp?containerId=prAP49721022.

[6] Gabriel Olano. "Ai to Reorganise Asia's Insurance Landscape." Insurance Bussiness America 20/06/2019, 2019. https://www.insurancebusinessmag.com/asia/news/breaking-news/ai-to-reorganise-asias-insurance-landscape-170431.aspx.

[7] Oliver Tonby , Jonathan Woetzel. "Asia’s Technological Path to Growth." (2020). Accessed 6/04/2023. https://www.ft.com/partnercontent/mckinsey/asias-technological-path-to-growth.html

[8] "AI-Driven Precise Medical Image Diagnosis for All." Perceptra, 2023, accessed 4/04/2023, 2023, https://www.perceptra.tech/.

[9] Resources, Department of Industry Science and. Australia’s Artificial Intelligence Ethics Framework. Australia Australian Government 2019.

[10] "Welcome to Segritech." Segritech, accessed 4/04/2023, 2023, https://segritech.com/.

[11] Lauren Sforza "Fake Ai Images of ‘Trump Arrest’ Hit Internet ". (2023). Accessed 8/04/2023. https://thehill.com/blogs/blog-briefing-room/3912427-fake-ai-images-of-trump-arrest-hit-internet/.

[12] Mark Sweney. "Darktrace Warns of Rise in Ai-Enhanced Scams since Chatgpt Release." (2023). Accessed 8/04/2023. https://www.theguardian.com/technology/2023/mar/08/darktrace-warns-of-rise-in-ai-enhanced-scams-since-chatgpt-release.

[13]"Cloud-Based Retail Management Solutions | Trax." trax, accessed 6/04/2023, 2023, https://traxretail.com/.


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