Why tech experts are against regulation of fast-growing AI

How Artificial Intelligence (AI) should be regulated was one of the touchy subjects at a recent conference in Nairobi, with the private sector calling for government support rather than regulation.

Coming up with regulations, they said, might stifle not only innovation but also the fourth industrial revolution that heavily relies on technological advancements.

Instead, the private sector called for collaborations with governments across the continent which will provide flexibility to businesses, particularly startups, and hand them space to breathe and innovate to the benefit of the whole digital economy ecosystem.

The concerns came up during the Connected Africa Summit 2024, where participants from around the world converged to explore the direction to take on connecting the continent to digital opportunities.

It is one of the subjects that Information, Communication and Digital Economy Cabinet Secretary Eliud Owalo pointed out as he detailed that by the end of the summit, the stakeholders should be able to provide a way forward on the several innovations happening in the tech space.

“We are dealing with issues of AI as to whether or not we need to regulate or let it regulate itself. We are also dealing with issues on big data, machine learning, and cyber security; all these require a holistic approach for the continent to move forward in tandem,” he said.

AI is the intelligence exhibited by computer systems that enable devices or systems to perform tasks with little human intervention.

Some of these intelligent systems are as simple as the camera lenses in smartphones to sophisticated ones like in electricity supply where AI can direct or redirect power supply during surges by learning consumer behaviour.

During the discussions, most players were in favour of having governments not take the same pathway they did with other technological advancements where they developed stringent regulations that to some extent ended up dwarfing innovation.

Shain Rahim, Cisco Country Manager, said regulators should instead come up with policies to create regulatory sandboxes akin to how the Capital Markets Authority (CMA) does where products are tested before being launched into the mass market.

“Instead of drafting long regulations that stifle innovation, let us collaborate to create regulatory sandboxes or innovation hubs to facilitate experiments and testing of AI applications,” she said.

Regulatory flexibility

This should be done in a controlled environment that provides regulatory flexibility and support for startups, researchers and businesses to innovate while ensuring consumer protection and risk management.

But in order to facilitate seamless adoption of AI and the fourth industrial revolution technology, Ms Rahim said countries in the continent must consider implementing clear regulatory framework, establish robust data protection and privacy regulations to safeguard individuals’ rights and promote trust in AI systems.

“We stay committed to partner in developing guidelines and principals for the responsible development and deployment of AI technologies addressing issues such as transparency, fairness, and accountability,” said Ms Rahim who manages the software, networking and cyber security firm with global footprints.

She referenced a recent survey by Cisco which showed that 95 per cent of the 8,000 IT leaders and businesses interviewed across 30 countries had an AI strategy in place or under development.

“Yet only 14 per cent are ready to integrate AI in their businesses,” she remarked.

Rahim said it is estimated that generated AI could add $4.4 trillion (Sh572 trillion) to the global gross domestic product (GDP) every year but there are still challenges to enable companies to benefit from this.

“We must with urgency promote skills development and capacity building initiatives to equip individuals with the knowledge and expertise to work with AI technologies,” she said.

Hani Khalaf, Regional Chief Technology Officer, Data and AI Solutions at Dell, said data and AI today are seen by governments and organisations as strategic assets.

He noted a trend where governments and organisations are keen on building data centres to enable data harnessing through AI.

Kenya is one of such governments with plans underway to put up a 1 Gigawatt data centre in Naivasha in partnership with Microsoft, Eco-Cloud and G42 Investment Group.

“These resources are expensive especially when we talk of accelerators for AI,” said Mr Khalaf.

“For these data centres to be used to enable innovation, governments need to provide access as a service to these startups and innovators.”

He said this will enable startups innovate, create jobs and put innovators on the world map.

Khalaf said with AI the possibilities for innovators in the African continent are enormous.

“For this to happen, innovators and startups need access to technology,” he said.

The summit was a strategic forum to chart a course towards a digitally interconnected future for Africa as a way to growth and prosperity.

It had participants from Africa, Asia and the European Union including ICT and economic experts, and think tanks.

Top government officials from various countries attended the summit including President William Ruto, US Ambassador to Kenya Meg Whitman and the EU Ambassador Henriette Geiger.

President Ruto highlighted the importance of technological innovation in driving economic development and creating jobs, and the need for digital infrastructure to enhance access to interconnectivity.

“Today, 300 million people across Africa live more than 50 kilometres away from an active fibre optic connection, a yawning physical gap that denies them access to the internet and separates them from all the possibilities of the digital economy,” he said.

The president said 84 per cent of people in the continent lived in areas where 3G connectivity service was available at the end of 2021, while 63 per cent had access to 4G mobile coverage.

“Regrettably, only 22 per cent were using mobile internet services. This gap between coverage and usage is similarly large for broadband internet connectivity, with 61 per cent of people in our region living within the broadband range but unable to use it.

“It is clear, therefore, that closing the digital divide is a priority in terms of enhancing connectivity, expanding the contribution of the ICT sector to Africa’s gross domestic product and driving overall GDP growth,” said the President, adding that Africa’s digital economy has immense potential, which is projected to reach $712 billion (Sh92.6 trillion) by 2050.

Ms Whitman exuded confidence that the continent will be home to technological innovations in the 21st century.

She pointed out that the adoption of technological innovation is a necessity for every business, saying “every business is a tech business.”

“Innovation is not about about what is flashy but addressing real problems to help real people,” she said.