Edition#4

Hello Readers,

Welcome to this week's newsletter, where we explore the intersection of technology and global affairs. We start with India's pivotal role in WTO's E-commerce Moratorium, followed by the UK's push for AI regulation. Sora AI's groundbreaking video capabilities take center stage, while concerns over deceptive AI in elections prompt action from tech giants. The EU's fine on Apple and resistance against Meta's ad-free service spotlight corporate governance scrutiny. OpenAI's dive into AI chip manufacturing promises to reshape the tech landscape. Lastly, a legal tussle with an Air Canada chatbot sheds light on customer service challenges in the digital era. Join us as we delve into these stories shaping our interconnected world. Happy reading!

WTO

WTO’s E-commerce Moratorium: Will India Betray the Interests of the Global South Again?

Wire: The article discusses India's stance on the WTO's e-commerce moratorium, which prohibits the imposition of customs duties on electronic transmissions. Despite an opportunity to terminate the moratorium at the 12th WTO ministerial conference, India reversed its position and agreed to extend it for two more years. This decision has led to significant revenue loss for developing countries, hindering digital industrialization efforts. The moratorium has disproportionately benefited digital giants like Apple and Amazon, raising concerns about fair competition and regulatory oversight. The article questions why exporters of digital goods are exempt from customs duties while physical goods exporters are not. It emphasizes the importance of India's decision at the upcoming Abu Dhabi summit and the potential consequences for developing countries if the moratorium continues.

UK

UK signals step change for regulators to strengthen AI leadership

Gov.uk: The UK government has revealed its plans for imposing binding requirements on developers of advanced AI systems for the first time. Acknowledging the rapid pace of technological development and ongoing uncertainties, it opts for a cautious approach, empowering existing regulators to address AI risks effectively.

Here's what we currently understand about the UK government's approach to AI regulation:

- The government plans to continue its non-statutory, principles-based approach to AI regulation, with existing regulators like the ICO, FCA, CMA, and MHRA expected to issue guidelines on implementing these principles within their domains.

- Regulators are urged to take the lead, with a deadline until April this year to publish their strategies for AI regulation. Additional funding of ￡10m will be allocated to support these efforts.

- Similar to the EU, there will be a specific focus on the most advanced general-purpose AI models, potentially leading to new requirements and legislation in the future.

- A comprehensive assessment will be conducted to identify any existing regulatory gaps and determine if additional regulatory powers are necessary.

- The government has established key milestones to achieve before the end of 2024, potentially resulting in a more concrete regulatory framework for AI by the conclusion of the current parliamentary term.

Sora AI Produces Eye-Popping Videos Instantly

Metanews: OpenAI's recent unveiling of Sora, a technology capable of instantly generating realistic videos, underscores the rapid advancements in artificial intelligence (AI). However, concerns loom large as the company has opted against immediate public release due to ongoing investigations into associated risks. Instead, OpenAI has chosen to share Sora with a select group of academics and researchers for scrutiny, highlighting the complexities and potential dangers surrounding AI development.

Despite its remarkable capabilities in language comprehension and character creation, Sora exhibits notable weaknesses, including inaccuracies in simulating complex scenes and difficulties in understanding nuanced cause-and-effect relationships. Moreover, challenges persist in spatial and temporal comprehension, raising doubts about the technology's readiness for widespread use. Against the backdrop of global elections, the unveiling of such advanced AI tools raises significant concerns about the potential for manipulation and misinformation in political campaigns. Regulatory and legal responses to AI-generated content underscore the urgent need for comprehensive measures to address these concerns and safeguard the integrity of democratic processes.

Tech giants pledge action against deceptive AI in elections

NPR: The unveiling of an agreement by tech giants, including Microsoft, Meta, Google, Amazon, X, OpenAI, and TikTok, highlights their voluntary efforts to address the potential disruptions caused by artificial intelligence in the 2024 elections. This voluntary nature prompts the question: does this underscore the urgent need for legal regulations to be swiftly implemented? The accord targets AI-generated content, aiming to prevent misleading images, videos, and audio that could impact voter perceptions of candidates and election processes, albeit without advocating for a complete ban on such content. While it signifies a united stance from platforms with substantial user bases, the agreement primarily reiterates existing initiatives, such as ongoing efforts to detect and label AI-generated content.?

This voluntary agreement outlines principles and commitments from the tech companies, including the development of technology to watermark, detect, and label realistic AI-generated content. Additionally, it involves assessing the underlying models of AI software to identify potential risks of misuse and supporting public education about AI. However, the agreement lacks specifics on enforcement mechanisms. Given the uncertain and unanswerable extent of AI's disruption in the upcoming election cycle, the voluntary nature of this agreement raises the question of whether legislative regulations should be expedited for effective oversight and control.

EU

EU poised to fine Apple about 500 million euros, FT reports

Reuters: The European Union is reportedly planning to impose a fine of around 500 million euros ($539 million) on Apple (AAPL.O) for alleged breaches of EU competition law, as per unnamed sources cited by the Financial Times on Sunday. The fine is anticipated to be officially announced early next month. This development stems from last year's accusation by the European Commission against Apple for distorting competition in the music streaming market through its App Store rules, which restrict developers from informing users about alternative purchasing options. Both the European Commission and Apple declined to provide comments on the Financial Times report.

EU privacy watchdogs urged to oppose Meta's paid ad-free service

Reuters: A coalition of 28 organizations, including privacy activist Max Schrems' NOYB group, the Irish Council for Civil Liberties, Wikimedia Europe, and the Electronic Privacy Information Centre, has urged European privacy enforcers to oppose Meta Platforms' paid ad-free service introduced in Europe last November. The service, which requires users to pay a fee for enhanced privacy, is criticized for potentially setting a precedent that could be adopted by other companies. The joint letter to the European Data Protection Board (EDPB) comes ahead of the EDPB's expected issuance of guidance on the consent or pay model in the coming weeks, following a request from privacy watchdogs in the Netherlands, Norway, and Hamburg.

The letter warns that if the "pay or okay" model is permitted, it could extend beyond news pages and social networks to other industries that can monetize personal data through consent. The coalition argues that such a model would undermine the General Data Protection Regulation (GDPR) and erode the protections against surveillance capitalism established by the landmark EU privacy rules adopted in 2016.

OpenAI's Altman seeks US government nod for AI chips venture, Bloomberg reports

Reuters: OpenAI CEO Sam Altman is in the process of seeking approval from the U.S. government for his upcoming AI chips venture, a move that may trigger concerns related to national security and antitrust regulations. Altman, who is reportedly exploring opportunities in global chip manufacturing, has informed potential investors and partners that progress on the venture hinges on obtaining clearance from Washington. Sources familiar with the matter revealed that Altman has engaged in discussions with investors and chip companies across the United States, as well as in the Middle East and Asia, regarding his new endeavor.

CANADA

Air Canada chatbot promised a discount. Now the airline has to pay it.

CBC News: A Canadian man recently sued Air Canada after receiving incorrect information from the airline's website regarding bereavement fares. Despite assurances from a chatbot that he could apply for a reduced fare after booking his ticket, Air Canada refused to honor this commitment after the trip. The airline attempted to distance itself from the chatbot's advice, claiming it was a separate legal entity responsible for its own actions. However, the judge ruled in favor of the passenger, criticizing Air Canada for failing to ensure the accuracy of information provided by its website. The case raises questions about accountability and the reliability of automated customer service tools. Read the full article to uncover the details and implications of this legal dispute.