Top powers race for artificially intelligent weapons

Subject Innovation in artificial intelligence-enabled defence systems outside the United States. Significance Besides the United States, China and Russia seek a geostrategic advantage through artificial intelligence(AI)-enabled defence. European governments are also waking up to the potential of such systems, but their efforts are splintered. Impacts The feverish pace of development in China suggests its defence systems may be unreliable or unsafe initially. Western researchers will be more bound by ethical barriers than their Russian and Chinese counterparts. Private sector responses will balance commercial gain and reputational risk.

Significance China’s ability and willingness to build and finance mammoth initiatives of questionable national value has made it a convenient partner for President Abdel Fatah el-Sisi. Impacts Both sides will tout projects that reflect the personal visions of their leaders. Private-sector Egyptian companies will be crowded out of the market by military-led enterprises. Egypt’s main economic partners will remain GCC countries, Europe and the United States for the foreseeable future.


Significance The hacking of emails of the Democratic National Committee (DNC) and Hillary Clinton’s campaign chair has touched off national discussion in the United States on Russia’s involvement and -- along with other high-profile cyberattacks believed to have been carried out by states such as those on Sony in 2014 and Saudi Aramco in 2012 -- have shone a spotlight on the complexity of attribution in cyberspace. Impacts Companies will increasingly find themselves in the crossfire of disputes between states. Governments will need to not only ramp up their country’s defences but also work with the private sector to ensure their cyber readiness. Societies may experience a challenge to democratic processes as states use cyber instruments to influence foreign elections.


Subject Prospect for artificial intelligence applications. Significance Artificial intelligence (AI) technologies, particularly those using 'deep learning', have in the past five years helped to automate many tasks previously outside the capabilities of computers. There are signs that the feverish pace of progress seen recently is slowing. Impacts Western legislation will make companies responsible for preventing decisions based on biased AI. Advances in 'explainable AI' will be rapid. China will be a major research player in AI technologies, alongside the United States, Japan and Europe.


Significance Facing the region’s largest coronavirus outbreak, the authorities belatedly closed schools, banned all religious and social gatherings and asked people to stay indoors. However, since mid-April, they have loosened restrictions, reflecting the difficulties of the private sector as well as the government’s limited capacity to provide relief. Impacts The economic pressure from COVID-19 on top of sanctions may force Tehran to divert assets away from the conflict in Syria. Finance for operations in Iraq will be prioritised as a core Iranian interest as well as an arena to combat the United States. The central bank may be forced to print money to finance increased health spending and social security, risking extremely high inflation.


Significance Its guidance will probably be at odds with the approach adopted by the United States. Impacts European AI firms will criticise a tougher regulatory strategy, fearing restrictions on their innovative potential, as well as from abroad. Larger tech companies will be better able to adapt to AI regulations than their smaller competitors. Public authorities, and law enforcement especially, will push back against facial recognition bans.


Significance The countries have historically had strong ties. However, Delhi’s growing partnership with Washington and burgeoning Moscow-Beijing relations are complicating factors, given the rivalry between Russia and the United States, and between India and China. Impacts Russia’s burgeoning ties with India’s enemy, Pakistan, will not undermine the Moscow-Delhi relationship. India’s private sector will remain reluctant to invest in Russia, fearing US sanctions. Delhi will over the next five years initiate 2+2 dialogues with individual ASEAN and EU members.


Subject Tech regulation in the United States. Significance San Francisco’s Board of Supervisors on December 10 amended its ban on facial recognition software to allow for Apple iPhones that use facial identification for unlocking the phone. The move reflects the difficulty cities and states face in regulating artificial intelligence (AI) and other advanced technologies that have privacy and security implications: while they are legally permitted to regulate, the efficacy of localities’ reforms runs into challenges in a largely unregulated national scene. Impacts AI in policing will attract attention, since municipalities are the jurisdiction for most US police. AI adoption will accentuate ethical concerns about racial discrimination in policing as reports of bias in algorithms proliferate. AI has a low chance of becoming polarised; the tech sector has Republican and Democratic friends.


Significance The United States and Iran sent their foreign ministers and 74 other countries also participated, along with many multilateral organisations, NGOs and private sector representatives. However, pledges were vague and even the most generous interpretation of aggregated funds -- 30 billion dollars, mainly in credit and investment pledges, not grants -- fell far short of the 60-88 billion dollars estimated to be needed. Impacts The relatively low level of pledges could harm the prime minister’s electoral prospects. Investments could flow to more prosperous areas rather than those worst affected by war. A failure to rebuild the economy in Sunni areas could catalyse future extremism.


Significance Kim's departure creates unforeseen turbulence at the institution, whose corporate commitments around climate change, gender and renewable energy are anathema to the current US administration. Impacts If the US nominee is an ideological conservative, World Bank relations with either the United States or other shareholders will be damaged. Short-term impacts on Bank operations will be minimal. Kim’s belief that he can affect “global issues” more in the private sector emphasises the importance of the Bank reviving its global role.


Significance The passenger car market will expand by 2.7% in 2016, according to private sector estimates, with growth evenly spread between the BRICS, Europe and the United States. The industry will focus on three transformations: the push into emerging markets (EMs), exploiting the potential of data and connectivity and managing the regulatory drive towards cleaner fuels. Impacts Diesel will remain a viable fuel in European markets. However, tougher testing and lower filtering margins will strengthen the case for further hybridisation of new models. The limited response from European regulators risks diminishing the incentives for domestic manufacturers to make changes early. Volume manufacturers are squeezed between low-cost manufacturers and the premium brands when it comes to connectivity.


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