Artificial Intelligence: A proposed "AI ecosystem" for Vietnam

Nội dung text: Artificial Intelligence: A proposed "AI ecosystem" for Vietnam

1. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM 67. 1Vu Quang Trinh* 2Ngan Thi Luong 3Hang T. T. Nguyen Mi Tran Kiet Tuan Duong Abstract In this paper, we have collected new, valuable, and relevant AI-related findings from the existing literature, and then provide some recommendations for Vietnam in sustainably promoting their 4th digital revolution process. Based on this background, we propose a Vietnam “AI Ecosystem” which consists of five core and interconnected pillars: Pillar 1 - the world AI development; Pillar 2 - Economy; Pillar 3 - Financial system; Pillar 4 - Corporations (i.e., Finance, Marketing and Management); and Pillar 5 - Social and Ethical Issues. We then suggest some important implications and recommendations for Vietnam in regulating AI: huge collaborations, Corporate Digital Responsibility (CDR), ethical AI model, the layered model for AI governance, etc. Our study offers a critical and timely insight with a hope to contribute to the future Vietnam digital era. Keywords: AI, Vietnam, AI Ecosystem, CDR, ethical AI model. 1. Introduction Artificial Intelligence (AI), known as the “simulation of human intelligence in machines that are programmed to think like humans and mimic their actions”, is already a widespread technology (e.g., Androutsopoulou et al., 2019; Frey and Osborne, 2017). AI could possibly have significant impacts on every aspect of our daily life and businesses; particularly, it has improved the quality of firm decision making and problems solving in * Newcastle University Business School, Newcastle University, UK| Email: vu.trinh@newcastle.ac.uk London South Bank University Business School, UK Huddersfield Business School, University of Huddersfield, UK 1015
2. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM various sectors over time via the usages of different types of machine intelligence, e.g., natural language comprehension, robotics, expert system, and machine learning (see Koroteev and Tekic, 2021; Eliasy and Przychodzen, 2020; Androutsopoulou et al., 2019). Globally, the AI market size was valued at $39.9 billion in 2019, and it is anticipated that the worldwide revenues for the AI market (software, hardware, and services) will be speedily increased by 16.4% per year in 2021 ($327.5 billion) (International Data Corporation, 2021) and break the $500 billion mark with a 5-year annual growth rate of 17.5% in 2024 ($554.3 billion). The covid-19 pandemic has also pushed AI to the top of corporate agenda, hence, this empowers the resilience and relevance of most of companies around the world. In the AI race, the U.S. and China are the leaders with significant AI investments in public and private sectors. For instance, the Chinese government has budgeted $2.1 Billion for AI-focused research center, while the U.S. Department of Defense announced its AI investments up to $2 billion over the next five years. Private investments in AI are over $23 billion in the U.S. and $9.9 billion in China in 2020 (Zhang et al., 2021). However, there are potential issues that are arising along with the AI development such as unemployment, income inequality, information asymmetry and new entry boundaries for start-ups (Aghion, Jones and Jones, 2017; Goolsbee, 2018; Agrawal, Gans and Goldfarb, 2019; Feijóo and Kwon, 2020). Vietnam is not outside the growing AI development trend. It is one of the countries worldwide which holds AI as the key to their economic and financial future (Vietnam Investment Review, 2018; Tang and Tien, 2020). With an increase in both population and consumptions of new advanced technologies recently, this potential market has become an attractive destination of high-tech investors such as Facebook, Apple, and Google. Particularly, in recent years, AI has become one of the most crucial strategic economic policies of the Vietnam government. However, the adoption of AI in Vietnam is lagged behind the other developed economies (e.g., the U.S., China or Japan) and still in the early phase of technological transformation. Whereas AI is developed in Vietnam, government and businesses not only enjoy inherent advantages, but also encounter with difficulties (Dwivedi et al., 2019). In order to foster the benefits of AI advancement, mitigate risks and formulate feasible economic plans for AI development, Vietnam needs to constantly discover and renovate new research findings about AI in the world, then properly relate them into its specific context and ultimately promote an “AI Ecosystem”. In the area of the 4th Industrial Revolution, AI in Vietnam has found their important applications in several areas of both, human life and corporate life. It is likely to create a breakthrough for Vietnamese socioeconomic expansion, and becomes one of the most 1016
3. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM familiar term and a new standard for this country to measure against each other (Makridakis, 2017; Dwivedi et al., 2019). Remarkably, Vietnam follows the trend of technology in the world very quickly. The spread of AI application also depends on the affordability of each business. Vietnam corporations are largely small and medium firms, so firms in Vietnam can adopt AI by starting with low-cost AI technology. For example, the impact of AI on Vietnamese commercial banks has been considerable, including the improvement of bank cost and performance, bank risk assessment, fraud detection and customer experience (Tang and Tien, 2020). Vietnam is also in the phase of 5G trial services on a large scale. According to research by the Institute of Information and Communication Strategy, 5G is forecast to contribute to GDP growth about 7% by 2025.4 In August 2020, the Ministry of Information and Communications and one of the technology giants companies – Viettel established an AI platform called “The Viettel AI Open Platform” to help and optimize the operations of organisations and businesses. The platform focuses on Vietnamese speech processing technology, Vietnamese natural language processing technology and computer vision technology. In his recent opening speech at an AI event5, Bui The Duy, Deputy Minister of Science and Technology, has asserted that AI techniques appear to be getting into Vietnamese daily life and it has (and will continue) replaced much of manual work in the labour-intensive fields. He thinks that Vietnam might be one of the biggest and most developed nations in the world that possess their own AI development policies as well as strategies to place AI at the core of their economic growth. Evidently, AI sector in this country has self-proved its incredible progress over years, especially in the production of goods with high degrees of AI applications. Nevertheless, like any other regions, Vietnam has to face several challenges including lack of big databases, resources and the number of corporations specialised in AI areas. Therefore, in this study, we believe that a research that could systematically collect updated, valuable and relevant AI-related findings in the existing AI literature from the world, and then qualitatively bring them to the context of Vietnam to make important recommendations, is tremendously indispensable. We, therefore, are among first studies doing so for this country. A great contribution of our study is, in general, to create an AI Ecosystem for Vietnam. Indeed we propose a new ecosystem for this country which includes five core pillars: Pillar 1 - the World AI development; Pillar 2 - Economy; Pillar 3 - Financial 4 5 Source: 1017
4. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM system; Pillar 4 - Corporations (i.e., Finance, Marketing and Management); and Pillar 5 - Social and Ethical Issues. These pillars are interconnected and play important role in the AI development of Vietnam. Based on the discussions of those pillars, we establish a great need for Vietnam in regulating AI in an extremely cautious manner. However, this needs to go along with several concerns and aspects. First and foremost, regulating AI to Vietnam requires a huge collaboration across many stakeholders including government, policy-makers, as well as businesses in public and private sectors, for example, to understand human-computer interactions in building trustworthy and fair decision- making algorithms. Second, we suggest that Vietnam could start using Corporate Digital Responsibility (CDR) as an essential aspect during the AI development periods. Third and importantly, we have raised an attentive to Vietnamese sectors/government that they should not keep rushing and break things because this is dangerous and makes the development across country and industries unevenly and hence, may lead to several future consequences, supported by AI experts and the existing literature showing that the risks involved might be enormous and harmful to the financial system, economy, and society. Fourth, in the current context and condition of Vietnam, it is necessary to establish ethical AI model since there are some risks involved of being unethical with AI across the globe. Fifth, we suggest that Vietnam can consider applying the layered model for AI governance, and increase their awareness and knowledge related to 'VUCA' AI environment (Volatility; Uncertainty; Complexity; Ambiguity). Finally, there is a need to balance Innovation-regulation equilibrium, to identify some regulatory sandboxes and AI catastrophic risks for Vietnam. All of the above recommendations imply that future of AI in this country needs to be in line with global development in AI such as Trust, socio- technical risks/regulation/ 2. Proposed a Rudimentary AI Ecosystem for Vietnam (A Brief): As widely known as a suite of technologies which is enabled by adaptive predictive power and exhibiting some degrees of autonomous learning, AI could dramatically help us to advance our ability in recognising patterns, predicting future events, creating good rules, making better decisions, and finally communicating with other people. Such advances have been fast changing what it takes to develop successful businesses and as a whole, Vietnam financial system and economy. To obtain an idea of how connected among these market players is, we self-construct a proposed AI Ecosystem for Vietnam (Figure 1). We basically consider five pillars which could potentially affect and shape AI in this country: world development in AI, Vietnam and global financial system and economy, corporations, and social and ethical issues. These key pillars will then support for 1018
5. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM regulating AI and a new model of ethical AI in Vietnam in future. In terms of social and ethical issues that could be raised during regulating AI process, we refer to one of the newest and interesting concepts which is the corporate digital responsibility (CDR). Regarding corporations which are the main players in AI industry, we focus on various aspects including finance, marketing, management and workforce. These are not every aspect that a corporation has but they cover key areas where AI can apply the most. [Details for this AI Ecosystem will be provided upon reasonable request] Figure 1: A Proposed Vietnam “AI Ecosystem” AI - World Developme nt Financial Economy system Artificial intelligence Ethical AI model Social & Corporations Ethical issues Regulation Corporate Digital Finance; Management; Responsibility (CDR) Marketing; governance Source: authors 3. Regulating AI: Critical Thoughts and Concerns We establish a great need for Vietnam in regulating AI in an extremely cautious manner. However, this needs to go along with several concerns and aspects. First and foremost, regulating AI to Vietnam requires a huge collaboration across many stakeholders including government, policy-makers, as well as businesses in public 1019
6. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM and private sectors, for example, to understand human-computer interactions in building trustworthy and fair decision-making algorithms. Taken previous findings and evidence all together (e.g., Koroteev and Tekic, 2021; Keding, 2021; Dwivedi et al. 2020; Dogru and Keskin, 2020; Eliasy and Przychodzen, 2020; Correia et al., 2020; Davenport et al., 2020; Androutsopoulou et al., 2019; Hoffman and Novak, 2018; Baek and Morimoto, 2012), we recommend some principles for Vietnam in their development of AI regulations. For example, in term of parity, the similar level of protection should be provided across individuals, firms, industries and areas. For Accountability, AI regulation process should be in place in order to make sure that all stakeholders including employees, companies, and government are held to account for their actions and policies. For Transparency, large and powerful AI firms and other players involved must be open for the public to monitor and scrutiny. For Openness, AI regulations should remain open to innovation and competition. For Privacy, AI regulations should be established to protect the privacy of individuals, corporations, and any stakeholders participating in AI development process. A proper enforcement and resources should be essential to implement those principles as well as promote their importance to all parts of AI society in the country. More importantly, governments and central banks may have to play a key role in driving AI adoption in financial services (e.g., World Bank, 2020). Policy-makers and AI market regulators should determine the pace of innovation that they will allow AI/tech/fintech companies to pursue, potentially moving over time to open banking platforms in which such level of playing field on the access of data. It is important that AI regulations strike a careful balance between data availability and privacy. Second, we suggest that Vietnam could start using Corporate Digital Responsibility (CDR) as an essential aspect during the AI development periods (Lobschat et al., 2021). the term Corporate Digital Responsibility (CDR) to refer to ‘the set of shared values and norms guiding an organisation’s operations with respect to the creation and operation of digital technology and data’. Aligned with our previous discussion, AI systems, even when developed with the best intentions, can result in unintended consequences, and therefore it is the responsibility of not only system designers but also involved organisations to ensure AI systems to be used in the ways they had anticipated with minimal risks to stakeholders and society at large. CDR requires corporations to take responsibilities and consider the consequences of their technologies and practices across different stages, including creation of technologies and data capture, operation and decision making, inspection and impact assessment, and refinement of technology and data (Lobschat et al., 2021). The concept of CDR is expected to stimulate discussions and 1020
7. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM growing interests among academics and the public domain, thereby shaping corporate digital practices in the future, particularly for Vietnam. Third and importantly, we have raised an attentive to Vietnamese sectors/government that they should not keep rushing and break things because this is dangerous and makes the development across country and industries unevenly and hence, may lead to several future consequences, supported by AI experts and the existing literature showing that the risks involved might be enormous and harmful to the financial system, economy, and society. Fourth, in the current context and condition of Vietnam, it is necessary to establish responsible and ethical AI model since there are some risks involved of being unethical with AI across the globe (Piano, 2020). Fifth, we suggest that Vietnam can consider applying the layered model for AI governance. We argue that to ensure transparency, accountability and explainability for the Vietnam AI ecosystem, all of stakeholders including Vietnamese government, civil society, the private sector as well as academia need to be at the table to discuss the governance mechanism thoroughly and critically. This governance can help to reduce or minimise the risks and possible downsides of AI and autonomous systems whilst still can harness its full potentiality. However, the process of designing an applicable governance ecosystem for AI in Vietnam, autonomous systems and algorithms should be complicated. A recent roadmap on AI policy by some leading experts in AI field has identified several clusters of core issues and questions in which the applications of AI can lead to new challenges and also amplify pre-existing policy concerns and pressure points. These clusters include Justice and equality (i.e., to what extent the Vietnam AI systems can be well designed and effectively operated to reflect fully human values like fairness, accountability, and transparency, etc.), use of force (i.e., how much human control is required? Whose responsibilities?), safety and certification (i.e., how to define and validate safety thresholds), privacy (i.e., what are the privacy implications?), displacement of labour and taxation (i.e., effects of AI on public finance, for example, when robots do not have to pay taxes). From this background, Vietnam can follow the layered model for AI governance established by Gasser and Almeida (2017). In summary, the interacting layers which sits between society and AI application, should be social and legal; ethical; and technical foundations in which the ethical and social layers will be supported. Figure 2 demonstrates a representation of the layered governance model for AI in Vietnam. Among these layers, the technical layer will be the foundation of the AI governance ecosystem. On top of this, there is high-level ethical concerns in applying to all types of AI applications and systems. The social and legal layer could then solve the process of creating organisations as well as allocate responsibilities for regulating AI and 1021
8. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM autonomous systems (Gasser and Almeida, 2017). As Gasser and Almeida stated, “implementing governance structures for AI and algorithmic decision-making systems can occur at multiple layers and involve blended approaches” (pg.6). Figure 2: The layered model for AI governance Source: Gasser and Almeida (2017) Sixth, we argue that Vietnam should also increase their awareness of 'VUCA' AI environment (Volatility; Uncertainty; Complexity; Ambiguity). This is simply because we are all living in a VUCA world as our existence should be characterised by volatility, uncertainty, complexity and ambiguity, the four VUCA components (Puri, 2017). In today’s interconnected world, the landscape of Vietnamese businesses has been shaped by a number of shifting forces. As such, technological advancements typically AI will challenge several modern leaders as they need to come up with innovative solutions to new issues. Certainly, things have been changing rapidly than ever before, hence, it is not easy to anticipate corporate outcomes and make right decisions. The discomfort for Vietnamese businesses, therefore, can be suffered. Also, the demands for most of corporations and their leaders should be much more complicated and this situation has been increasing recently. Yet complacency seems to be not an option anymore. In sum, it is a must to understand and increase awareness of how a disruptive environment could impact on corporations and prepare to act accordingly. This can help to keep businesses viable. 1022
9. HỘI THẢO KHOA HỌC QUỐC GIA ĐỊNH HÌNH LẠI HỆ THỐNG TÀI CHÍNH TOÀN CẦU VÀ CHIẾN LƯỢC CỦA VIỆT NAM 4. Conclusion In conclusion, in this study, we have created an AI ecosystem for Vietnam based on previous evidence and literature. We believe that this ecosystem is important for the development of Vietnam in years to come, yet we also emphasise that it should be further improved, and adjusted to satisfy the continuous development and change of this country. There will be several things needed to do and hence, it is important to establish a huge collaboration across many stakeholders including government, policy-makers, as well as businesses in public and private sectors. In addition, there is a need to balance Innovation- regulation equilibrium, to identify some regulatory sandboxes and AI catastrophic risks for Vietnam. All of the above critical recommendations imply that future of AI in this country needs to be in line with global development in AI such as Trust, and socio- technical risks/regulation. References Aghion, P., Jones, B. F., & Jones, C. I. (2017). Artificial intelligence and economic growth. National Bureau of Economic Research. Agrawal, A., Gans, J., Goldfarb, A. (2019). Economic policy for artificial intelligence. Innovation Policy and the Economy, 19(1), 139–159. Androutsopoulou, A., Karacapilidis, N., Loukis, E., & Charalabidis, Y., (2019). Transforming the communication between citizens and government through AI-guided chatbots. Government Information Quarterly, 36(2), 358-367. Baek, T.H. & Morimoto, M., 2012. Stay away from me. Journal of advertising, 41(1), 59-76. Correia, A., Jameel, S., Schneider, D., Paredes, H. & Fonseca, B., 2020, December. A Workflow- Based Methodological Framework for Hybrid Human-AI Enabled Scientometrics. In 2020 IEEE International Conference on Big Data (Big Data) (2876-2883). IEEE. Davenport, T., Guha, A., Grewal, D., & Bressgott, T., 2020. How artificial intelligence will change the future of marketing. Journal of the Academy of Marketing Science, 48(1), 24-42. Dogru, A.K., & Keskin, B.B (2020). AI in operations management: applications, challenges and opportunities. Journal of Data, Information and Management, 2, 67–74. Dwivedi, Y. K., Hughes, L., Ismagilova, E., Aarts, G., Coombs, C., Crick, T., & Williams, M. D. (2019). Artificial Intelligence (AI): Multidisciplinary perspectives on emerging challenges, opportunities, and agenda for research, practice and policy. International Journal of Information Management, 101994. Dwivedi, Y.K., Ismagilova, E., Hughes, D.L., Carlson, J., Filieri, R., Jacobson, J., Jain, V., Karjaluoto, H., Kefi, H., Krishen, A.S., & Kumar, V., 2020. Setting the future of digital and social media marketing research: Perspectives and research propositions. International Journal of Information Management, p.102168. 1023
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