Concentration in AI Innovation and the Governance Challenge

A field with its roots established in the 1950s, artificial intelligence (AI) is suddenly much more in the public eye and capable of doing useful things for casual users as well as experts. Its rollout over the coming decade could be a very big deal indeed. AI innovation is advancing. To achieve broad welfare gains and global participation in the AI economy, stakeholders — producers, suppliers, consumers, researchers, regulators and others — will need a safe and trustworthy business environment that facilitates responsible access and technology diffusion.

In a new paper from the Centre for International Governance Innovation (CIGI; Waterloo, Canada), the author examines the concentration of AI innovation and considers factors in the regulatory environment that may support or hinder its responsible diffusion in line with applicable international norms. The paper aims to add to the literature on AI innovation and its diffusion by delivering analysis drawing on a unique combination of firm-level data sources and policy indicators.

The conclusions highlight four priority areas for action in development of international AI governance: 

Designation of an international institution to lead on AI regulatory cooperation

Prioritization of regulatory coherence

Build-in of transparency into regulatory processes and AI systems

Promotion of well-regulated data management

The full paper can be found here:

AI Innovation Concentration and the Governance Challenge

Link: Douglas Lippoldt, CIGI Paper No. 292, April 16, 2024

Further reading: This research builds on my previous work on the digital economy, which focused on the risks of fragmentation. See Mitigating Global Fragmentation in Digital Trade Governance: A Case Study, Q4TK Blog, 19 January 2023.

Patti Smith

Hands off my crabs, Mr President!

A shortage of crabs on the Eastern Shore?

No! Hands off my crabs, Mr President! According to a Washington Post article on 17 August 2018, a labour shortage has emerged in the crab sector on the Eastern Shore of Maryland due to immigration controls. No local crab meat? We have to import it now? What is that all about?

Full employment for crab pickers?

We economists generally consider full employment reached when unemployment gets down to around 5%. Unemployment in Somerset is still around 7.7%, in Worcester it is around 6.4% and in Dorchester it is still 5.5%. In other words, there are folks out there on Delmarva who are looking for work.

What in the world: reservation wages?

And, the Delmarva crab houses have raised their wages. Yet, there is still a gap between the wages on offer in the crab industry and what folks expect in terms of working conditions and pay. These are the so-called reservation wages, the level of wages that workers will hold out for until they are willing to supply their labour.

What to do?

But, the crab houses can’t charge their customers enough to pay the wages most Eastern Shore folks want to do this type of work. What to do? Let the industry die? Or let in seasonal workers. I know what i would do… I’d first make sure local jobseekers know about the work on offer (via the state employment service). Then, if enough folks don’t come forward, I would make available seasonal work visas. I’d vote to keep the crab meat coming!

Photo: © Doug L., 2012