OECD Report: “The most recent phase of digital transformation is marked by rapid technological changes, creating both opportunities and risks for the economy and society. The Volume 2 of the OECD Digital Economy Outlook 2024 explores emerging priorities, policies and governance practices across countries. It also examines trends in the foundations that enable digital transformation, drive digital innovation and foster trust in the digital age. The volume concludes with a statistical annex… In 2023, digital government, connectivity and skills topped the list of digital policy priorities. Increasingly developed at a high level of government, national digital strategies play a... (More >)
The Emerging Age of AI Diplomacy
Article by Sam Winter-Levy: “In a vast conference room, below chandeliers and flashing lights, dozens of dancers waved fluorescent bars in an intricately choreographed routine. Green Matrix code rained down in the background on a screen that displayed skyscrapers soaring from a desert landscape. The world was witnessing the emergence of “a sublime and transcendent entity,” a narrator declared: artificial intelligence. As if to highlight AI’s transformative potential, a digital avatar—Artificial Superintelligence One—approached a young boy and together they began to sing John Lennon’s “Imagine.” The audience applauded enthusiastically. With that, the final day dawned on what one government... (More >)
Cross-border data flows in Africa: Continental ambitions and political realities
Paper by Melody Musoni, Poorva Karkare and Chloe Teevan: “Africa must prioritise data usage and cross-border data sharing to realise the goals of the African Continental Free Trade Area and to drive innovation and AI development. Accessible and shareable data is essential for the growth and success of the digital economy, enabling innovations and economic opportunities, especially in a rapidly evolving landscape. African countries, through the African Union (AU), have a common vision of sharing data across borders to boost economic growth. However, the adopted continental digital policies are often inconsistently applied at the national level, where some member... (More >)
AI helped Uncle Sam catch $1 billion of fraud in one year. And it’s just getting started
Article by Matt Egan: “The federal government’s bet on using artificial intelligence to fight financial crime appears to be paying off. Machine learning AI helped the US Treasury Department to sift through massive amounts of data and recover $1 billion worth of check fraud in fiscal 2024 alone, according to new estimates shared first with CNN. That’s nearly triple what the Treasury recovered in the prior fiscal year. “It’s really been transformative,” Renata Miskell, a top Treasury official, told CNN in a phone interview. “Leveraging data has upped our game in fraud detection and prevention,” Miskell said. The Treasury... (More >)
Machines of Loving Grace
Essay by Dario Amodei: “I think and talk a lot about the risks of powerful AI. The company I’m the CEO of, Anthropic, does a lot of research on how to reduce these risks. Because of this, people sometimes draw the conclusion that I’m a pessimist or “doomer” who thinks AI will be mostly bad or dangerous. I don’t think that at all. In fact, one of my main reasons for focusing on risks is that they’re the only thing standing between us and what I see as a fundamentally positive future. I think that most people are underestimating... (More >)
The Unaccountability Machine — why do big systems make bad decisions?
FT Review of book by Dan Davies: “The starting point of Davies’ entertaining, insightful book is that the uncontrolled proliferation of accountability sinks is one of the central drivers of what historian Adam Tooze calls the “polycrisis” of the 21st century. Their influence reaches far beyond frustrated customers endlessly on hold to “computer says no” service departments. In finance, banking crises regularly recur — yet few individual bankers are found at fault. If politicians’ promises flop, they complain they have no power; the Deep State is somehow to blame. The origin of the problem, Davies argues, is the managerial... (More >)
China’s Hinterland Becomes A Critical Datascape
Article by Gary Zhexi Zhang: “In 2014, the southwestern province of Guizhou, a historically poor and mountainous area, beat out rival regions to become China’s first “Big Data Comprehensive Pilot Zone,” as part of a national directive to develop the region — which is otherwise best known as an exporter of tobacco, spirits and coal — into the infrastructural backbone of the country’s data industry. Since then, vast investment has poured into the province. Thousands of miles of highway and high-speed rail tunnel through the mountains. Driving through the province can feel vertiginous: Of the hundred highest bridges in... (More >)
Regulating the Direction of Innovation
Paper by Joshua S. Gans: “This paper examines the regulation of technological innovation direction under uncertainty about potential harms. We develop a model with two competing technological paths and analyze various regulatory interventions. Our findings show that market forces tend to inefficiently concentrate research on leading paths. We demonstrate that ex post regulatory instruments, particularly liability regimes, outperform ex ante restrictions in most scenarios. The optimal regulatory approach depends critically on the magnitude of potential harm relative to technological benefits. Our analysis reveals subtle insurance motives in resource allocation across research paths, challenging common intuitions about diversification. These insights... (More >)
Rejecting Public Utility Data Monopolies
Paper by Amy L. Stein: “The threat of monopoly power looms large today. Although not the telecommunications and tobacco monopolies of old, the Goliaths of Big Tech have become today’s target for potential antitrust violations. It is not only their control over the social media infrastructure and digital advertising technologies that gives people pause, but their monopolistic collection, use, and sale of customer data. But large technology companies are not the only private companies that have exclusive access to your data; that can crowd out competitors; and that can hold, use, or sell your data with little to no... (More >)
Harnessing Technology for Inclusive Prosperity
Book edited by Brahima Sangafowa Coulibaly and Zia Qureshi: “Transformative new technologies are reshaping economies and societies. But as they create new opportunities, they also pose new challenges, not least of which is rising inequality. Increased disparities and related anxieties are stoking societal discontent and political ferment. Harnessing technological transformation in ways that foster its benefits, contain risks, and build inclusive prosperity is a major public policy challenge of our time and one that motivates this book. In what ways are the new technologies altering markets, business models, work, and, in turn, economic growth and income distribution? How are... (More >)
