Artificial Intelligence (AI) is emerging as a central policy issue in several countries. The significant issues for policymakers are applications of AI for public good, regulation, economic impact, global security and fairness issues, etc. Advanced and rapid developments in the field of technology in recent times has been led by AI, which has profoundly accelerated the process of development around the world.

AI is continuously evolving to benefit many different industries. Machines are wired using a cross-disciplinary approach based on mathematics, computer science, linguistics, psychology, and more. AI has spread across various domains and sectors like the financial sector, banking sector, smart cities, mobility and transportation, healthcare, education, agriculture, and several other industries are joining the list.

In this scenario where AI is creating an impact on every sector, governments around the world are deploying AI policies and strategies to tackle the negative implications of the technology. Across these AI strategies - ethical issues and regulation of AI were highlighted as key concerns. Algorithmic transparency and explainability, clarity on liability, accountability and oversight, bias and discrimination, and privacy are ethical and regulatory questions that have been central issues before formulating AI strategies. Employment and the future of work are other areas of focus that policymakers in different countries have identified.

These are essential factors and trends to consider while formulating national roadmaps for AI. Without adequate institutional planning, there is a risk of national strategies being too monolithic. Without sufficient supporting mechanisms in the form of national institutions it would become difficult to implement a national strategy and actualize the potentials of AI. 

Key International AI Strategies

Given the importance and emerging capabilities of AI, dozens of countries and International organizations have established strategies and initiatives regarding AI. For example, China and the UK estimate that 26% and 10% of their GDPs, respectively, in 2030 will be sourced from AI-related activities and businesses.

The US, UK, China, and EU are the governments that have been bringing amendments to their AI policies. China became the first country to implement regulations on generative AI models. The recent law passed by China is the world's earliest and most comprehensive regulation on controlling productive AI tools, such as OpenAI's ChatGPT and many more. Seven Chinese regulators jointly published the provisional rules on the leadership of the Cyberspace Administration of China. 

At the same time, in July this year, the Whitehouse announced that AI companies, including OpenAI, Alphabet and Meta Platforms, have voluntarily committed to the White House to implement watermarking AI-generated content to help make the technology safer.

In 2023, the UK hosted an AI Summit, which witnessed nations' participation worldwide. The Bletchley Declaration, released during the summit, exemplifies the idea of international diplomacy, where the countries join under the same roof to address the most intricate and transformative technological advancements of our time. It emphasizes the shared responsibilities of entities like governments, the private sector and the global community to ensure that AI is served for good. This focus on AI safety and responsible developments highlights the acknowledgement that AI's possible benefits should be harnessed better by mitigating AI-associated risks.

Impact of AI Policies on India

Novel AI policies are constantly coming into place. But the question is, how will these international policies affect the Indian economy? Let us take a look.

• The executive order

The United States released an executive order directed towards New Standards for AI. Trisha Ray, an associate director and resident fellow at the Atlantic Council's GeoTech Center, called the order a timely signal of the United States' intent to lead the global conversation on AI ethics by example. While the order primarily aims at the safety and security measures of the United States, it also contains provisions for fostering the development of AI in the US.

One such provision includes efforts to attract foreign talent to American companies and research laboratories by boosting the nation’s AI arsenal. The Biden administration, as part of this plan, wants to leverage the expertise of highly skilled immigrants and nonimmigrants with expertise in key areas to stay, study and work in the US, by making the visa interview and review process more efficient.

One of the significant benefits offered by this directive is reducing the processing times and associated costs of the administrative processes such as visa verification. This is a boon for the international students in the country as they will no longer be required to travel to their home country for a visa interview at an Embassy. 

The students can also attend international conferences more easily and enjoy hassle-free travel without worrying about visa renewal back home. As per a report in fas.org, the directive to update the rules surrounding H-1B visas is expected to positively impact the over 500,000 H-1B visa holders.

The report stated that the Department of Homeland Security recently released a notice of proposed rulemaking to reform the H-1B visa rules. It would allow these visa holders to easily transition into new jobs, have more predictability and certainty in the renewal process and more flexibility of better opportunities to apply their skills and allow entrepreneurs to more effectively access the H-1B visa.

It is reported that there are approximately 900,000 international students in the US. This policy change has the potential to impact over 450,000 international students. 

Furthermore, the report remarks that nearly 37000 of the J-1 visas issued in 2022 went to professors, research scholars and short term scholars who are the citizens of China and India. Hence, this update not only expands opportunities available to these participants but also tackles critical skill gaps within fields like Ai in the US. Once the J-1 skills list is updated to meet the realities of the global labor market today, it will allow thousands of additional high skilled J-1 visa holders to apply for other visa categories immediately, without spending 2 years in their country of origin.

• The UK framework agreement

Similarly, according to UK science minister George Freeman, India and the UK plan to sign a framework agreement this year to strengthen their cooperation in advanced sciences.

Image: MoS Rajeev Chandrasekhar at the AI safety Summit

India will benefit from the MoU, based on three pillars, which would be long-term, lasting over 5-10 years. The first pillar is science, research, and technology. Pillar two is concerned with commercialization, industry, innovation, and investment. Pillar three is about government, regulation, diplomacy and skills. 

• India-Canada relations

Earlier this year, India and Canada renewed Two MoUs at the 7th India-Canada Joint Science and Technology Cooperation Committee (JSTCC) meeting in Ottawa, setting priorities for the next period in various innovative fields. 

The agreement will contribute to India and Canada's bilateral relations and is committed to deepening ties, with science, technology, and innovation being critical pillars of the relationship.

According to Dr Chandrasekhar, Secretary, DST, the focus areas of the collaboration between the two countries are the National Missions, quantum computing, AI, cyber-physical systems, and so on. He also pointed out that many Indian students are studying in Canadian Universities, and the renewal of the MoUs would help intensify the exchange of ideas and expertise between the two countries.

• India-EU relations 

India and the European Union are committed to deepening their partnership and leveraging their respective strengths to accelerate the development and deployment of advanced digital technologies that will benefit both societies and promote global progress in line with our shared values. These will contribute to the country's developmental research win, as the relations will undertake Quantum and High-Performance Computing research and development projects that could address climate change, natural hazards, bioinformatics, bio-molecular research, and drug development. 

In addition, India and the European Union will coordinate within the Global Partnership on Artificial Intelligence (GPAI) and explore bilateral cooperation on trustworthy and responsible Artificial Intelligence, including research and innovation. 

The collaboration between the nations will work towards bridging the digital skills gap, exploring Mutual Recognition of certifications and making progress on the promotion of skilled professionals and the exchange of talent.

The FAIR Forward project in India, a global initiative of the German Federal Ministry for Economic Cooperation and Development (BMZ) implemented by GIZ, supports the localisation of AI, opening up of AI trained data sets including data protection and privacy for the development of voice technologies. Their key initiatives in India include “Open AI Voice Datasets in India” published in 2020, and the study on Earth Observation Training Data Landscape in India. FAIR Forward’s initiatives in India aim at developing services built on human-machine interaction in the local language, such as in information hotlines or automated customer services.

What can India learn?

Apart from internal development, India can also learn from these international policies. The EU has a "General Data Protection Regulation" (GDPR). India can emphasize data privacy and protection and develop similar regulations to protect the rights of its citizens. The country can also adopt policies like Canada's Directive on Automated Decision-Making and the United States Algorithmic Accountability Act. These policies ensure that AI is used fairly and transparently and prevent algorithmic bias. 

Furthermore, China's New Generation AI Development strategy includes heavy investments in R&D for developing AI sectors such as transportation, healthcare, and finance. Japan's AI Utilization Promotion Act could be another way our country could provide suitable learning to India. It will focus on creating a supportive environment for AI development, especially in terms of education, the creation of AI standards and startup support.

How to implement novel regulations?

Adopting novel AI policies will not be enough. The country must ensure that it is working for the economy. For this, a "Sandbox approach" comes in handy. A sandbox is a "controlled environment or safe space in which FinTech startups or other entities at the initial stages of developing innovative projects can launch their businesses under the 'exemption' regime in the case of activities that would fall under the umbrella of existing regulations or the 'not subject' regime in the case of activities that are not expressly regulated on account of their innovative nature, such as initial coin offerings, cryptocurrency transactions, asset tokenization, etc. 

Sandboxes offer several advantages to technology developers, including verifying and demonstrating an innovative technology by testing it in a live environment with real consumers. In addition, successive trial-and-error testing within a controlled climate mitigates the risks and unintended consequences, such as unseen security flaws, when a new technology gains market adoption.

Conclusion

Over the years, India has leapfrogged in many technology sectors. According to Nasscom, India's 'AI Skills Penetration Factor' is the highest, i.e., Indian tech talent is three times more likely to possess AI skills among all G20 and OECD countries. It ranks fifth in AI scientific publications. Around 2026, AI-led disruption across sectors could add $500 billion to India's economy. 

India's international relations in the AI sphere is aiding the nation to overcome pre-existing challenges such as data management, language barriers, issue created by cultural differences etc. However, India still has a long way to go in the path of development.

Nations have adopted different policies to regulate the development and use of artificial intelligence (AI). India can incorporate key lessons in its "AI for all" framework. For a rapidly growing technology sector, the government must collaborate with industry leaders, researchers, and social organizations to design policies that balance innovation and regulation and promote ethical practices. By doing so, India can harness AI to achieve its socio-economic goals while mitigating the risks associated with emerging technologies.

Sources: All source materials are back linked in the content.