Rethinking Africa’s digital trade: Entrepreneurship, innovation, & value creation in the age of Generative AI (depHub)

8 Dec 2023 10:00h - 11:30h UTC

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Table of contents

Disclaimer: This is not an official record of the UNCTAD eWeek session. The DiploAI system automatically generates these resources from the audiovisual recording. Resources are presented in their original format, as provided by the AI (e.g. including any spelling mistakes). The accuracy of these resources cannot be guaranteed. The official record of the session can be found on the UNCTAD website.

Full session report

Shamira Ahmed

The integration of data-driven digital technologies, including AI and generative AI, holds significant potential to shape the future of digital transformation and trade in Africa. This argument was put forward in a discussion led by Shamira Ahmed, the Executive Director of the Data Economy Policy Hub. Ahmed is associated with an independent think tank founded by indigenous African women in South Africa.

The session highlighted the various challenges, opportunities, and risks associated with the influence of AI on digital transformation and trade. While acknowledging the transformative capabilities of AI, it was stressed that a multidimensional exploration of these aspects is necessary.

To delve deeper into the topic, a panel discussion was proposed, consisting of experts from various domains. The diverse panel aimed to provide insights into the role of digital technologies in shaping Africa’s digital services trade landscape, with specific emphasis on the creative economy, digital services trade, global governance, and the ethics of digital transformation.

Addressing the need for responsible governance, Shamira Ahmed emphasized that generative AI and other data-driven technologies, if not governed responsibly, could create a range of new issues. These include challenges in the regulatory and policy environment, connectivity, distributional effects, and disinformation.

Furthermore, Ahmed expressed interest in exploring the most promising use cases of generative AI in Africa and other developing countries. Specifically, she sought examples that demonstrate how these technologies can enhance human capital, productivity, and cross-border trading services.

While recognizing the positive impacts of AI, Shamira Ahmed cautioned against the risks that might contribute to inequality and wealth concentration in the tech space. Responsible governance, both at national and international levels, was highlighted as crucial to effectively mitigate these risks.

In conclusion, the integration of data-driven technologies such as AI and generative AI has the potential to reshape digital transformation and trade in Africa. However, it is essential to fully understand and address the multidimensional challenges, opportunities, and risks they bring forth. Responsible governance plays a pivotal role in maximizing the benefits of these technologies while mitigating potential pitfalls. Through panel discussions and exploration of diverse perspectives, valuable insights into the role of digital technologies in Africa’s digital services trade landscape can be gained.

Emily Jones

The analysis explores various aspects of AI innovation, trade agreements, AI governance, data privacy, and AI regulation. It raises concerns about the equitable distribution of AI innovation, highlighting its dominance by a few countries. Although African and other developing countries participate in AI innovation, challenges related to access and competition persist.

Trade agreements are scrutinised for potentially reinforcing the power of large companies without redistributing the benefits. The rapid development of trade agreements has implications for AI and digital ecosystems, with a particular concern for the influence of dominant companies in the AI space. This raises questions about the representation of smaller industry players, labour, and consumers in AI governance discussions.

The analysis emphasises the importance of addressing the harmful aspects of AI, including precarious work conditions, potential consumer harm, and data access and transparency concerns. Stronger regulations and proactive measures are needed to mitigate these issues.

There is a need for trade agreements that level the playing field for developing countries. Developing countries face challenges in the AI ecosystem, such as limited access to resources and unbalanced relationships with big tech companies. Current trade agreements may not effectively address issues related to competition, consumer protection, and labour rights in the digital economy.

The analysis highlights the lack of inclusivity in AI governance debates. Exclusive spaces such as the G7, OECD, US, EU, and Trade and Technology Council often exclude low-income and many developing countries. It suggests that developing countries can pool resources at regional levels to ensure a more inclusive approach to global AI governance.

Geopolitical tensions significantly influence AI governance spaces and can complicate discussions, creating barriers to inclusivity.

The analysis also raises concerns about the dominating presence of Big Tech in the AI space. Issues such as data ownership, control over infrastructure, and marketplace influence are highlighted, questioning fairness and competition within the industry.

Enforcement of data privacy laws is identified as a major issue, with difficulties faced by smaller countries in regulating large technology companies. A global solution for data privacy enforcement is proposed to address these challenges.

Governments worldwide are struggling to regulate AI. The concentration of AI expertise within the industry makes it challenging for the public sector to effectively regulate. The pooling of resources is suggested to bridge the gap between government and industry.

The analysis concludes by advocating for a more holistic and inclusive conversation about AI. It highlights the importance of diverse perspectives, including ethical experts, in AI discussions and regulations.

Overall, the analysis demonstrates the multifaceted challenges and complexities of AI innovation, trade agreements, AI governance, data privacy, and AI regulation. It emphasises the need for equity, inclusivity, and addressing the harmful aspects of AI. Strong regulations, global cooperation, and diverse perspectives are crucial in shaping the future of AI.

Katalin Bokor

Frontier technologies, including Artificial Intelligence (AI), have the power to bring about transformative changes in socioeconomic development. These technologies are already being used in sectors such as education, agriculture, and manufacturing, improving efficiency and productivity. Small and medium-sized enterprises (SMEs) in developing countries are leveraging these technologies to enhance logistics, communication, and e-commerce platforms, facilitating their access to global markets.

New technologies are promoting financial inclusion, providing millions of people in developing countries with access to mobile money and formal financial accounts. This accessibility empowers individuals and contributes to poverty reduction and economic empowerment.

However, challenges remain, such as the digital divide where a significant portion of the global population lacks internet access, with Africa being particularly affected. Bridging this gap is crucial for ensuring equitable opportunities for all.

Efficiently utilizing frontier technologies requires implementing frameworks that manage competition issues, create fair markets, and invest in necessary infrastructure. These measures are essential for achieving equitable and sustainable development.

AI is revolutionizing the creative industries, reducing the costs of producing audiovisual content and enabling more individuals to make a living from creative pursuits. The use of AI applications is also increasing productivity and competitiveness for entrepreneurs in developing countries.

In the education sector, AI is enhancing the learning process through gamification and personalized experiences. Egyptian company, Vord, has developed educational games used in over 120 schools, benefiting more than 30,000 students.

Online marketplaces are connecting African artisans with global markets, overcoming infrastructural barriers and expanding their customer base.

Trade agreements are evolving to focus on sustainability, inclusiveness, and gender issues, ensuring trade benefits all stakeholders while promoting equality and environmental protection.

Global and regional cooperation is crucial for effectively harnessing the potential of frontier technologies, developing frameworks, building capacities, and ensuring equitable distribution of benefits.

Intellectual Property Rights (IPR) are vital for fostering innovation and respecting human rights in the context of AI technologies. Striking a balance in the legal framework is necessary to promote advancement while upholding ethical standards.

Overall, there is a positive sentiment towards frontier technologies and their potential for socioeconomic development. Stakeholders are actively working to overcome challenges and ensure the equitable distribution of these transformative technologies.

Javier Lopez Gonzalez

The analysis of the speakers’ arguments reveals several important points related to digital connectivity, trade, regulations, and ethical issues. One key point is the role of digital connectivity in boosting both international and domestic trade. The argument presented with a positive sentiment suggests that simple gravity modeling analysis demonstrates the crucial role of digital connectivity in increasing trade. More internet connections lead to a greater volume of domestic trade, outweighing the impact on international trade. This highlights the significance of digital connectivity in driving economic growth.

Regarding regulations, there are mixed views regarding the regulatory environment. The analysis suggests that while OECD countries have lower barriers, African countries face higher regulatory barriers. However, it is noted that African countries are making efforts to reduce their regulatory barriers at a faster pace than OECD countries. One key supporting fact is that significant regulatory reform in Africa can be as impactful as removing a 20% tariff on exports. This implies that the regulatory environment plays a crucial role in determining the export potential of African countries, and further improvement is needed.

The analysis also discusses the maintenance of the moratorium on applying customs duties on digital transmissions. The argument presented with a negative sentiment suggests that applying customs duties on digital transmissions could create more barriers for African countries, particularly in creative industries, when trying to enter global markets. It is highlighted that digitally deliverable services are growing at a rate of 8% annually, but African countries represent a small share. Therefore, maintaining the moratorium is seen as essential to facilitating the participation of African countries in the global digital economy.

The use of artificial intelligence (AI) and digital technology for trade is seen as beneficial. The analysis provides examples where the use of AI at customs and blockchain technology enhances international trade. Additionally, it is highlighted that foreign services help gain domestic and international competitiveness. However, there is a negative sentiment associated with concentration in two countries, which is viewed as detrimental to achieving a more balanced global trade landscape.

The importance of market openness to access technology and services is emphasized with a positive sentiment. It is supported by evidence that coding principles rely on drawing from online sources to create products, and high tariffs on digital devices in Africa hinder technology adoption. The argument suggests that market openness is crucial for countries to fully benefit from technological advancements.

Openness to data and talent is also considered important. The analysis suggests that without a data protection policy, data transfer is hindered due to a lack of trust. Additionally, it is noted that talent may be better found abroad, implying the need for countries to be open to talent mobility. Both these points are presented with a positive sentiment.

The analysis highlights the need for an integrated global digital market rather than autarky. It is argued that digital markets are globally interdependent, and smaller countries may not have the market size to make digital products economically viable. Therefore, an integrated digital market is viewed as crucial for promoting the growth of digital products.

There is a negative sentiment associated with purpose bounds on data, indicating that such bounds may inhibit innovation. It is argued that the value of data often comes from its multiple uses, which may not be foreseen at the point of collection. However, it is also acknowledged that there needs to be a balance to ensure individuals are sufficiently informed about data use.

The analysis suggests that trade agreements may not be sufficient to tackle ethical issues. While trade agreements do include considerations and flexibilities for moral purposes, there is a negative sentiment that more needs to be done. The EU-Japan data flows agreement is cited as an example of considering ethics in trade agreements.

The struggle to regulate AI is highlighted with a negative sentiment. It is mentioned that both developing and developed countries are grappling with the challenges of regulating AI. Executive orders in the US and the AI Act in the EU are examples of attempts to regulate AI, but it is noted that there is no solid answer yet on how to effectively regulate it.

The effectiveness of enforcement mechanisms in privacy rights is viewed positively. The reference to the EU and GDPR with larger fines is seen as a potential deterrent to violations of privacy rights.

Caution is recommended when involving international systems in domestic dispute resolution. The analysis suggests that unless an international company is involved, the involvement of international systems in domestic disputes may not be appropriate.

The need for problem-solving and cooperation is viewed neutrally, highlighting the vast opportunities and challenges faced in finding solutions. Additionally, the belief in breaking silos and bringing multiple perspectives to find appropriate solutions is presented with a positive sentiment.

Finally, the analysis questions the effectiveness of trade agreements with exceptions and flexibilities. It suggests that such trade agreements may not be the best solution, and presents a neutral sentiment on this matter.

In conclusion, the analysis of the speakers’ arguments reveals various viewpoints on digital connectivity, trade, regulations, and ethical issues. While digital connectivity is seen as crucial for boosting both international and domestic trade, there are mixed views on the regulatory environment. The maintenance of the moratorium on customs duties on digital transmissions is deemed necessary to avoid creating barriers for African countries. The use of AI and digital technology is considered beneficial, but concentration in two countries is viewed negatively. Market openness to access technology and services is emphasized, along with openness to data and talent. The creation of an integrated global digital market is argued to be essential. There is concern that purpose bounds on data may hinder innovation and that trade agreements may not adequately address ethical issues. The struggle to regulate AI is recognized, and the effectiveness of enforcement mechanisms in privacy rights is acknowledged. Caution is advised when involving international systems in domestic dispute resolution. The need for problem-solving and cooperation is highlighted, along with the importance of breaking silos and embracing multiple perspectives. Lastly, the effectiveness of trade agreements with exceptions and flexibilities is questioned.

Peter Kirchschlaeger

The analysis of the speakers’ arguments regarding AI and generative AI reveals several concerns. There is a negative sentiment towards the reinforcement of existing economic structures, where certain individuals benefit while others suffer human rights violations in the entire value chain. The argument is made that AI and generative AI have led to the same people enjoying economic benefits, while the same people suffer the consequences, including human rights violations. The speakers question who is enjoying the upsides of AI and generative AI and who is suffering under the downsides.

Ethical risks related to privacy, data protection, copyright violations, and disinformation are highlighted. It is pointed out that companies are constantly breaking laws regarding data protection and copyrights with no consequences. There is a risk of disinformation campaigns and deepfakes that can undermine political systems. The argument put forward is that generative AI increases these ethical risks, hence the need to address them.

Extended screen time due to AI and generative AI is seen as posing risks to physical and mental health. It is argued that screen time equals manipulation, going beyond mere influence. This manipulation can occur in both the economic sphere, affecting customers and decision-makers, and the political sphere, affecting citizens and politicians. The concern is that AI and generative AI open up the scope for manipulation in these fields.

Criticism is directed towards big tech companies for their exploitation of developing countries’ data for their own profit. The argument is that there is injustice when these companies expect developing countries to use their technologies, while the collected data is used outside these countries for profitable business opportunities. It is proposed that local talent should be utilized to work on local data infrastructure and develop specific contextualized solutions.

The analysis also underlines the need to avoid intensifying colonial power structures with technological innovation. The speakers stress the injustice faced by developing countries in the era of big tech and emphasize the need for utilizing local talent and data for local benefits.

On a positive note, it is argued that ethical considerations and human rights protections should be prioritized in the application of AI and digital transformation. The speakers give an example of purpose-bound data use in medical settings, where personal information is shared with physicians only for the purpose of addressing health issues.

There is a call for global regulatory efforts to be pooled to effectively handle the unique challenges of AI and digital transformation. It is stated that AI and digital transformation are global phenomena and should be addressed as such.

The responsibility of technology companies to adhere to laws and ethical use of technology is emphasized. The speakers refer to tech companies breaking laws as long as the gains outweigh the sanctions. The argument is made that technology companies need to act responsibly and comply with laws and ethical use of technology.

The creation of an International Database Systems Agency at the UN is proposed as a solution to monitor human rights violations, regulate access to markets, and facilitate technological cooperation. The speakers draw parallels to the establishment and function of the International Atomic Energy Agency in their argument.

Trade agreements are seen as an opportunity to address ethical issues. The suggestion is made to incorporate ethics research in the creation process of trade agreements, as they have the potential to address ethical considerations, injustices, or divides.

The importance of balancing innovation with human rights and respecting human rights laws is stressed. It is argued that purpose-bound data use is not meant to hinder innovation but it is important to strike a balance. The speakers highlight the importance of informed consent in data use for promoting innovation while respecting human rights.

There is potential for technology-based solutions to facilitate transparent and constant flow of information about how the user’s data is being used. It is proposed that instant transparent information can help users understand and potentially agree or disagree on how their data is used.

The speakers argue that doing things differently in the AI space could ensure respect for human rights and foster innovation. It is suggested that striving for different ways to work with AI in the future can help promote innovation while also preserving human rights.

It is stated that national efforts are necessary in trying to regulate AI and generative AI. Additionally, regional initiatives for effective regulation are also suggested, as pooling efforts in regional initiatives may lead to more effective AI regulation.

The need to aim for creating a global regulatory framework for AI is emphasized. The speakers contend that AI is a global phenomenon and therefore needs a global regulatory framework.

The establishment process of the framework and international database systems agency AIDA is discussed. The argument is made that initiatives taken so far should be integrated into the establishment process of AIDA.

The conclusion drawn from the analysis is that there is a need for a holistic and inclusive global framework to regulate AI. The speakers believe that such a framework should prioritize ethical considerations, human rights protections, and the involvement of university-based experts in regulatory committees. They also stress the importance of interdisciplinary, international, and inclusive dialogue in addressing the challenges posed by AI and generative AI. Finally, support is expressed for the establishment of the International Database Systems Agency at the UN.

Audience

The analysis covers various arguments and stances on data protection, privacy, and ethical concerns. One argument raises concerns regarding the protection of data and ethical collection practices. It is reported that a company collected IRIS data from 2 million people in Nairobi, despite the government’s order to cease. This data collection occurred without clear information or consent from the individuals, leading to ethical concerns, especially as the individuals were paid for their data.

Another argument highlights the importance of safeguarding people’s rights while promoting innovation. The supporting facts indicate that the company collecting the data did not disclose how the data is being used, resulting in the violation of people’s rights. This argument expresses a negative sentiment towards the situation.

The analysis also addresses the upsurge of digital money lending in Nigeria due to COVID-19 restrictions. The supporting facts suggest that the restrictions implemented in Nigeria in response to the COVID-19 pandemic were effective. However, these restrictions led to a need for financial aid and assistance to individuals, resulting in an increase in digital money lending. This argument conveys a negative sentiment, emphasizing the impact of the restrictions on individuals’ financial circumstances.

The violation of privacy and misuse of personal data by digital money lenders are discussed as well. The supporting facts indicate numerous instances of privacy and data violations. Digital lenders have resorted to harassing techniques to pursue loan repayments, prompting an investigation by the Commission. This argument conveys a negative sentiment, highlighting the seriousness of privacy and data misuse concerns.

Furthermore, the importance of establishing a global and regional regulatory framework for data protection is emphasized. The speaker suggests leveraging regional initiatives to address these issues and references ongoing discussions on global regulatory efforts. This argument carries a neutral sentiment, underscoring the need for international collaboration to protect data and privacy.

Lastly, the analysis explores the potential role of artificial intelligence (AI) in regulatory compliance. The speaker seeks advice on how AI can assist with regulatory compliance. This argument is neutral, emphasizing the need for further exploration and discussion to fully comprehend the benefits and challenges of AI in this context.

In summary, the analysis raises critical concerns regarding data protection, privacy, and ethical considerations. It underscores the importance of obtaining clear information and consent when collecting data, the financial impact of COVID-19 restrictions, the necessity for robust privacy and data protection regulations, and the potential role of AI in regulatory compliance. These findings underscore the significance of ethical data practices and the need for comprehensive regulations to safeguard individual rights in the evolving digital landscape.

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Audience

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728 words

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EJ

Emily Jones

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JL

Javier Lopez Gonzalez

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Katalin Bokor

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Peter Kirchschlaeger

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Shamira Ahmed

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