US Innovates, China Replicates, UE Regulates

Tom Teluk

13 May 2024

Stanford University in California has been presenting the Artificial Intelligence Index and a report on trends in this sector for 6 years. This year’s conclusions give a lot to think about.

Faster, more, better

The research covers the areas of research and development, technological performance versus human performance, responsibility in the design of AI algorithms, issues of economic change, innovations in science and medicine, applications of artificial intelligence in public policy, as well as people’s perception of the phenomenon.

Scientists from Stanford write that artificial intelligence already exceeds human cognition when it comes to distinguishing images, graphic modeling and even understanding a foreign language. However, complex problems still remain the domain of humans.

Business and the world of science are rapidly moving forward, developing specific machine learning models, counting on a generous bonus for success.

Last year, over 50 such models were created. Less than a third came from academia. The reason for the restrictions is funding. Creating a successful mechanism will cost from USD 78 million (Chat GPT-4) to USD 191 million (Gemini Ultra). The United States is the global leader, with 61 implemented mechanisms. The European Union has created 21 of them and China 15. However, China registers the most patents on this market – three times more than the USA and over 30 times more than Europeans. In the record year 2022, as many as 62,000 were awarded in this field. patents. The number of open architecture projects is also increasing. Last year, as many as 1.8 million open source projects based on AI were launched.

Artificial intelligence models are becoming more and more complex, better and more effective, capable of more and more, processing more data and finding wider use in practice. They are becoming more and more autonomous, requiring no supervision, and the number of tasks they handle is increasing.

But AI brings not only benefits from its use, but also threats. “Political deepfakes are already influencing elections around the world, and recent research suggests that existing AI-based deepfake detection methods perform with varying levels of accuracy. Additionally, new projects such as CounterCloud show how easily artificial intelligence can create and spread false content,” the report says.

The risks concern not only politics but also business. Credibility, reputation, security, transparency and honesty suffer. It is becoming increasingly difficult to distinguish a fake from an original, artificially generated content from original content, or finally truth from falsehood. However, leaders such as Meta, Google and OpenAI put transparency of their actions first. Hopefully to the benefit of the development of artificial intelligence.

Unknown threats

The emergence of mechanisms that were previously unknown causes an escalation of threats that we did not expect, and what is worse, that are impossible to predict in the future. In other words, we don’t yet know what serious dangers artificial intelligence poses for us. However, the number of crimes and critical situations caused by the use of AI is already increasing dramatically. Artificial intelligence as an element of controlling the flow of innovation and capital to the United States will certainly be political. It will be an element of the policies of individual countries. Therefore, competition in this market is becoming more and more fierce.

Markets and entire sectors of the economy are being transformed. The labor market is particularly interesting, where the impact of AI on the future of individual professions is analyzed, attempts are made to outline trends, and highlight skills that will be necessary in the future and those that will no longer be useful.

The largest investor in this market are, of course, the Americans, who spent $67.2 billion on AI last year, 8.7 times more than the Chinese. This is essentially the difference between the approach to the problem in Asia, Europe and overseas. Americans are investing, while in the Middle Kingdom and the EU, spending on artificial intelligence has decreased. However, it is still a niche in the market. Only two percent of job offers in the US are related to this sector.

However, China is the leader in robotics. As the world’s factory, the Chinese are investing heavily in production automation. Every second working production robot works in China. Over the last decade, the Middle Kingdom has dethroned the Japanese in this respect.

However, there is something to fight for. According to McKinsey research, as many as 42 percent companies, asked about the effects of using AI mechanisms, indicated that it brought them significant savings, and in the case of 59 percent allowed to generate additional profits. Therefore, it seems that investments of this type have already reached the return ceiling that is noticed by enterprises.

Therefore, more and more committed companies are being established on the market, although it must be honestly admitted that for some of them AI is such a bad thingas much a lure as the slogan “Internet” during the dotcom bubble at the turn of the millennium, or “blockchain” during the recent boom in the crypto-project market. However, companies are working hard to be at the forefront of this revolution. Already half of the companies surveyed by McKinsey have implemented this type of implementation in at least one type of business.

A chance for science and medicine

Sectors that see benefits from the use of artificial intelligence are primarily science and medicine. AI is already widely used, e.g. in imaging diagnostics or designing healthy lifestyles. The American Federation of Drugs and Foods (FDA) allows the use of more and more inventions based on artificial intelligence. Their number has exceeded 100 per year since 2020.

The development of AI is driven by IT professions. That’s why IT fields are so popular in Europe. The leader is Great Britain, supplying over 25,000 to the market. graduates per year. Germany is also doing well with a number close to 20,000. Poland is in the top five, educating 9.2 thousand people. graduates, highly appreciated on the international labor market. In this field we are ahead of the Italians, Dutch, Spanish and French. Europe effectively competes with the Americans and Canadians in this field.

More and more scientists researching the topic are also moving from academia to business. The basic motive is certainly earnings, because migration in the opposite direction is negligible. Finally, let’s move on to public policy. Governments on continents operate with a well-known principle: USA – innovation, China – replication, EU – regulation. In the United States, everything is decided by the market, and the bonus for success can be enormous. China imitates innovators, bluntly, spying and counterfeiting everything it can, legally and illegally. Brussels, on the other hand, bureaucratizes everything, thus hampering its progress. When it comes to markets where regulations are implemented, these are, of course, the medical, financial and security markets.

In general, the sentiment around artificial intelligence is positive. People declare that they know what it is about, they use or will use AI in the future, and they have limited trust in companies that offer this type of services. What will happen in the future – nobody knows, but generally optimism prevails, especially among young and very young people.