A discussion about labor resources in developing countries that fuel AI development and its impacts on the labor market

Significant human labor and natural resource investments are needed to build and maintain the infrastructure to support the development and deployment of AI systems. Furthermore, various regions around the world play a role in supplying labor or natural resources in the AI development life cycle. Developing countries show up mostly in supplying the natural resources needed for the technical infrastructure as well as the human labor needed for data collection, labeling, and enrichment, as well as moderating content generated by AI. However, we also know that labor markets can be impacted by AI applications in ways that sometimes pose obstacles for economic development, equity, and inclusion.

On August 31, 2023, fellows participated in a discussion on the topic of AI and labor. In order to seed the discussion, two program participants presented concrete case studies and research findings that uncovered practices from developing countries that showcase the intersection of AI development and deployment on the one side and its impact on the local labor market on the other.

Presenters

Summary of the Discussion

The third session started with a presentation focused on Kenya, outlining the government’s strategies for preparing its workforce for the digital economy. Allegedly, the overarching vision of responsible decision makers on site is to transform the country into a well-connected digital nation – a promised metamorphosis that not only focuses on enhancing digital infrastructure, but tries to optimize government digital services, foster digital skills, and spur innovations in the digital economy. Furthermore, there’s a marked emphasis on respective data protection and the formulation of supportive policy frameworks when it comes to deploying AI responsibly.

According to the presentation, Kenya has already made commendable strides in digital infrastructure, standing out as a beacon in East Africa. Significant bandwidth, facilitated primarily by undersea cables, not only supports the nation’s digital needs but also leaves a capacity surplus, some of which is extended to neighboring countries. Another critical part of Kenya’s digital journey is the emphasis on skill enhancement, which has manifested itself in a variety of different initiatives, from introducing robotics to children in schools to promoting digital programs for the youth or rolling out cybersecurity training in collaboration with big tech companies. The Presidential Digital Talent Programme, for example, is a remarkable effort, offering young tech enthusiasts a gateway to government sectors, thereby shaping the future generation of ICT professionals.

Sri Lanka’s story in the digital and AI sphere – the focus of the other presentation – illustrates somewhat of a contrast. Despite its robust technical education infrastructure, churning out thousands of tech graduates annually, the island nation witnesses a surprising inertia in AI’s broader application – a particular challenge that can, most likely, be attributed to multiple factors. While the foundation in terms of literacy rates, free education, and computer literacy is robust, the nation’s AI readiness lags behind on a global scale. A glaring gap is evident in transitioning AI projects from a mere conceptual stage to a fully practical application. A significant chunk of this challenge arises from the complexities of transitioning from the Proof of Concept phase to creating full-fledged AI systems, often exacerbated by a lack of essential engineering skills and real-world tech integration know-how.

Recognizing these bottlenecks, Sri Lanka has initiated a series of corrective measures. A newly formed national committee, driven predominantly by the private sector, is at the helm of carving a robust AI strategy for the country. According to the presenter, the government’s commitment to this cause is evident in the earmarked funds for AI in the impending national budget. Proposed plans, such as the formation of a National AI Agency and a centralized Data Center, signal the country’s dedicated approach. And academia is not left behind either, with considerations to infuse AI-centric curricula and establish innovation hubs at universities. To further nurture this ecosystem, the government is allegedly contemplating grants for AI research and offering tax incentives for corporate AI initiatives, turned commercial.

The broader discussion subsequently transitioned to the intricacies of AI deployment, with a focus on developing countries. The difference between initiated AI projects and those that see successful deployment at the end was at the center of attention. The AI government readiness index, for example, a critical metric that evaluates a government’s aptitude to harness AI for public services, is already becoming a focal point – not just in Sri Lanka. In this context, the United Nations Development Programme’s (UNDP) endeavor to assess AI readiness promises a comprehensive evaluation. The dialogue also delved into the pivotal role of AI skilling and the imperative to develop robust infrastructures, notably cloud resources, to bridge the prevalent “compute gap.” The pathway to navigating these challenges seems to hinge often on securing international funding and bolstering public-private partnerships.

Questions and remarks from program participants spanned various facets, from the objectivity of AI readiness metrics to the technological underpinnings and the financial scaffolding for AI projects. Notably, the importance of harnessing private sector prowess for the long-term sustainability of AI projects was a consensus. The session also encapsulated shared challenges and synergies many nations grapple with, be it AI readiness, infrastructure evolution, or skill cultivation. Shifting the lens to AI policy and strategy, concerns about expert appointments for AI policy formation and their selection processes were tabled. Direct involvement from top decision-making cycles thereby often underscores the strategic importance of presidential initiatives, yet also presents the danger of political influence. With shared insights from countries like Mexico and their policy propositions, the meeting evolved into a rich exchange of shared experiences, challenges, and opportunities.

This summary captures the extensive discussion and insights shared during the meeting held on Aug 31, 2023, at 11:00am EST while maintaining the anonymity of individual participants as per the Chatham House Rule.

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