ITRE - Study Guide by Institute of Research & Training on European Affairs

EUropa.S. 2019

April 19th-22nd | University of Piraeus Organized by: Institute of Research & Training on European Affairs

Study Guide EUropa.S. 2019 European Parliament- ITRE

Topic: Realising European Artificial Intelligence Leadership and its economic and societal potential

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

Table of Contents Table of Contents ___________________________________________________________ 2 Greeting of the Board ________________________________________________________ 3 Introduction to the ITRE Committee

__________________________________________ 4

Introduction of the Topic _____________________________________________________ 5 HISTORICAL BACKGROUND ___________________________________________________ 7 LEGAL FRAMEWORK _________________________________________________________ 9 Research and Technological Development Policy ________________________________ 9 Digital Single Market Strategy _______________________________________________ 9 Communication “Artificial Intelligence in Europe” ______________________________ 11 DISCUSSION OF THE TOPIC ___________________________________________________ 13 The European Artificial Intelligence Landscape _________________________________ 13 The Economic and Societal Potential of AI _____________________________________ 16 The Economic Potential of AI _____________________________________________ 16 The Societal Potential of AI ______________________________________________ 18 Future Challenges ________________________________________________________ 19 Legal Issues ___________________________________________________________ 20 Technical Issues _______________________________________________________ 21 Ethical Issues _________________________________________________________ 23 Major Competitors of the EU in the Global Market ____________________________ 24 EUROPEAN POLITICAL PARTIES’ POSITION_______________________________________ 25 Conclusions_______________________________________________________________ 28 Glossary _________________________________________________________________ 29 Questions Raised __________________________________________________________ 31 Bibliography ______________________________________________________________ 32 Further Reading ___________________________________________________________ 37 Useful Links_______________________________________________________________ 37

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EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

Greeting of the Board Distinguished Μembers of the European Parliament, It is our utmost honor to welcome you all to EUropa.S. 2019! We are more than excited to serve as Chairs of the Committee on Industry, Research and Energy (ITRE) of the European Parliament and share this amazing experience with you. Our Committee will elaborate on a demanding yet topical issue which needs to be addressed efficiently and comprehensively. The development of Information and Communications Technology (ICT) has gradually created Artificial Intelligence(AI), an area of computer science that can have far-reaching effects in several sectors and cause fascinating changes in value chains and business models. While Artificial Intelligence systems can offer a variety of benefits for its users, but also for the global community, such as the treatment of chronic diseases, fighting climate change and anticipating cybersecurity threats, at the same time it raises serious concerns regarding safety, transparency and accountability. Since the European Union (EU) needs to have a coordinated approach to make the most of the benefits offered by AI and to address the challenges that it entails, our Agenda was chosen in order to show up ways European citizens and businesses can benefit from the digital revolution and the opportunities brought about by AI in accordance with European core ethical and social values. This Study Guide is the primary source of all the general information you will need for your research, prior and during the conference as it illustrates the main aspects of the topic under discussion. However, it is only a starting point to your study, aiming at motivating you for further research, which needs to be focused on your party’s and your country’s policy on this matter. Please bear in mind that this topic is currently one of the most debated issues within the European bodies and updates are yet to come, so your personal research will have to be informed and up-to-date. All in all, we are looking forward to meeting you in person, admiring your diplomatic skills and innovative ideas! Do not hesitate to contact us should you have any inquiries regarding the topic or the Rules of Procedure. We are looking forward to meeting you in person! Kind regards, The Board of the ITRE Committee

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EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

Introduction to the ITRE Committee The European Parliament constitutes the only directly and democratically legitimate institution of the EU and functions as an important forum for political debate and decision-making at the EU level1. The Members of the European Parliament (MEPs) are elected by voters in all Member States to represent people’s interests with regard to EU law-making and to make sure other EU institutions are working democratically. In order to perform its functions, the Parliament shall meet both in plenary sessions once per month and in standing committees once or twice per month2. The Committee on Industry, Research and Energy constitutes one of the standing committees of the European Parliament dealing with a variety of issues related to European industrial policy, technology, energy and research. With reindustrialization as its overarching aim, the Committee emphasizes on four specialized priority areas3. The ITRE Committee firstly concentrates on ways to ensure that EU’s legal and economic framework enables the European industrial sector to become more competitive, especially by mobilizing EU’s Research and Development (R&D) programs and new technologies. It further touches upon green growth and development of European small and medium-sized enterprises(SMEs)issues, focusing on research programs, skills development training schemes and fiscal legislation4.The third priority area is the formation of a true European digital market fully harmonized with the economic and political imperatives prevailing in the EU, which will be the driving force of innovativeness for European businesses 5 . What is more, one of the fundamental competences of the ITRE Committee is the drafting of the EU’s common energy security and energy efficiency policy with special emphasis on the development of trans-European networks in the energy infrastructure sector6.Finally, the Committee is also responsible for the European space policy and the supervision of the Joint Research Centre as well as for the European Research and innovation policy, including science, technology and exploitation of research findings and scientific data7.

European Parliament 2018,About Parliament [Online] Available at: http://www.europarl.europa.eu/about-parliament/en [Accessed on 30/11/2018] 2 Ibid 3 European Parliament 2018, ITRE Committee [Online] Available at: http://www.europarl.europa.eu/committees/en/itre/home.html [Accessed on 30/11/2018] 4 Ibid 5 Ibid 6 Ibid 7 Ibid EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 4

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

Introduction of the Topic The world-renowned physicist and cosmologist Stephen Hawking once said that “AI is likely to be either the best or worst thing to happen to humanity"8. This famous quote reflects in the best possible way the fact that AI can be a doubled-edged sword: it can be both a bless for a society, through its far-reaching transformative effects, as well as a curse especially in case it will outperform humans in the future. But before thoroughly analyzing the potential and the challenges of AI, it is of paramount importance to clarify this concept. Artificial Intelligence can be defined as “the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with the intellectual processes that are characteristic of humans”9 .This definition implies that such systems display: a) intentionality, that is the ability to combine information from various different sources and unlike passive machines capable only of mechanical or predetermined responses, to reach conclusions and act upon their insights, b)intelligence, that is learning, reasoning, problem solving, planning, perception, creativity and communication skills and c) adaptability, that is adjusting to constantly changing circumstances or conditions shift by integrating these changes in their algorithms and decide how to respond 10. AI is considered to be a branch of computing science and more specifically cognitive computing. There are two major categories of AI: symbolic learning and machine learning. Symbolic learning entails the idea of humans intervening in order to create a static symbolic reasoning system that attempts to explicitly represent human knowledge in a declarative form, for example in facts and rules11. Machine learning on the other hand, endows systems with the ability to access data and automatically learn and ameliorate from experience without being explicitly programmed by humans to do so12. Artificial intelligence is also classified in different categories-stages of development. The first one is artificial narrow or weak intelligence and focuses on the employment

Pilkingkton, G. 2018. You’re Already A Cyborg [Online].Available at: https://medium.com/themission/youre-already-a-cyborg-b95ead28f1be [Accessed on 30/11/2018] 9

Encyclopedia Britannica, n.d.Artificial intelligence [Online].Available at: https://www.britannica.com/technology/artificial-intelligence [Accessed on 30/11/2018] 10 West, D.M. 2018. What is artificial intelligence? [Online].Available at: https://www.brookings.edu/research/what-is-artificial-intelligence/ [Accessed on 30/11/2018] 11 Skymind, n.d.Symbolic Reasoning (Symbolic AI) and Machine Learning [Online].Available at:https://skymind.ai/wiki/symbolic-reasoning [Accessed on 30/11/2018] 12 Expert System, n.d.What is Machine Learning? A definition [Online].Available at: https://www.expertsystem.com/machine-learning-definition/ [Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 5

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide of a single subset of cognitive abilities leading to the specialization of a machine and its training to only specific tasks, such as chess playing13. General or strong artificial intelligence, on the other hand, is a more advanced category and refers to machines that possess human-level intellectual capacities and are thus able to apply understanding and reasoning to almost every task given to them rather than only to narrowly predefined problems 14 . Finally the third type is called artificial superintelligence and refers to machines that outperform humans in every possible field, including general wisdom, scientific creativity and social skills15. It must be pointed out however, that currently researchers have been able to achieve a satisfactory level of progress only regarding the weak AI sector and therefore the particular characteristics of the other two types remain theoretical and do not facilitate the distinction between them16. Artificial Intelligence is steadily emerging as a general-purpose technology that could have a far-reaching impact effects and cause disruptive changes in every field of the human activity. As AI-powered systems act increasingly more autonomously and their use becomes widespread across different sectors, AI safety, transparency, and accountability concerns, become more and more relevant. As a result, AI global governance is gradually being given due consideration both by national governments and international organizations. EU could not stay indifferent to the global AIleadership race and due to the fear that it is losing ground to the US and China, in 2017 decided to take decisive regulatory actions. EU’s interest for a unified and renewed response to the challenges of the global competition and of the Fourth Industrial Revolution can be justified due to two reasons. First, Europe, has a leading role in core AI systems (e.g. fundamental research in AI that is not focused on a specific sector or activity), but it lags behind in the development and commercialization of industrial applications, such as those related to Internet of Things(IoT), robotics and driverless vehicles and robotics17. But second and most important, a single Member State cannot live up on its own to the demanded amount of resources and knowledge to keep up with the latest AI developments 18.

Carriço, G. 2018.The EU and artificial intelligence: A human-centred perspective.European View,17(1), pp 29–36. 14 Ibid 15 Ibid 16 Ibid. 17 Delponte, L. 2018. European Artificial Intelligence (AI) leadership, the path for an integrated vision [Online]. Available at:http://www.europarl.europa.eu/RegData/etudes/STUD/2018/626074/IPOL_STU(2018)626074_EN. pdf [Accessed on 30/11/2018] 18 Ibid EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 6

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide Only an EU-intervention can help every Member-State face its own challenges and contribute to the rationale of equal AI-development among the different parts of the continent.

HISTORICAL BACKGROUND Although the concept of AI has risen in popularity after the 1950s, the ideas behind it trace back to the antiquity, both in terms of the actual construction of mechanical models by Hero, Daedalus and Archytas of Tarentum and in terms of mythology, namely through the myth of Talos and the figure of Hephaestus, the blacksmith god who crafted mechanical servants19. Below you will find a timeline containing some of the most notable milestones in the history of artificial intelligence. 1763

Thomas Bayes develops what is about to become a leading approach in the field of machine learning, the Bayesian inference, a framework of reasoning about the probability of events20.

1811- Luddites, a group of English textile workers, destroy textile machinery as a 1816 form of protest against their use to by-pass standard labour practices and working rights21. 1920 Czech writer Karel Čapek publishes Rossum’s Universal Robots, better known as R.U.R, a science fiction play introducing the word “robot” from the word “rabota”, meaning work and deals with robots working for humans that ultimately resort to a rebellion leading to the extinction of the human race 22. 1950

Alan Turing publishes Computing Machinery and Intelligence in which he proposes “the imitation game’” later become known as the “Turing Test”, involving a human interrogator asking questions to a computer and a human foil in order to determine which is the computer23.

AI Topics, n.d.A Brief History of AI [Online].Available at: https://aitopics.org/misc/brief-history [Accessed on 30/11/2018] 20 Press, G. 2016. A Very Brief History of Artificial Intelligence (AI)[Online]. Available at:https://www.forbes.com/sites/gilpress/2016/12/30/a-very-short-history-of-artificial-intelligenceai/#d89c7b16fba2 [Accessed on 30/11/2018] 21 AI Topics, n.d.A Brief History of AI[Online].Available at: https://aitopics.org/misc/brief-history [Accessed on 30/11/2018] 22 Schultebraucks, L. 2017. A Short History of Artificial Intelligence[Online].Available at:https://lasseschultebraucks.com/artificial-intelligence-history[Accessed on 30/11/2018] 23 Schultebraucks, L. 2017. A Short History of Artificial Intelligence[Online].Available at:https://lasseschultebraucks.com/artificial-intelligence-history [Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 7

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide 1956 American computer scientist John McCarthy organizes the Dartmouth Conference, at which the term “Artificial Intelligence” is firstly coined24. 1959 Arthur Samuel coins the term “machine learning”, arguing the idea of programming a computer which will learn to play a better game of checkers than the person who created the program25. 1966 Shakey the robot, the first general-purpose mobile robot capable of logically analyzing its own actions, is created26. 1974- First AI Winter(from nuclear winter), meaning that computer scientists face a 1980 tremendous cut of funding for AI research, as they disappoint government and corporations due to the difficulty in creating intelligent machines, since they require to process a large amount of data27. 1987- Second AI Winter28 1993 2011 The natural language question answering computer named Watson, competes on the American quiz show Jeopardy and beats two former champions29. 2014 An autonomous car designed by Google passes the first US State Self-Driving Test30. 2017 Saudi Arabia worldwide first grants citizenship to Sophia, a robot possessing human-like appearance and behavior31.

Ray, S. 2018. History of AI[Online].Available at: https://towardsdatascience.com/history-of-ai484a86fc16ef [Accessed on 30/11/2018] 25 Press, G. 2016. A Very Brief History of Artificial Intelligence (AI)[Online]. Available at:https://www.forbes.com/sites/gilpress/2016/12/30/a-very-short-history-of-artificial-intelligenceai/#d89c7b16fba2 [Accessed on 30/11/2018] 26 Ibid. 27 Ray, S. 2018. History of AI [Online].Available at: https://towardsdatascience.com/history-of-ai484a86fc16ef[Accessed on 30/11/2018] 28 Schultebraucks, L. 2017. A Short History of Artificial Intelligence[Online].Available at:https://lasseschultebraucks.com/artificial-intelligence-history[Accessed on 30/11/2018] 29 Ray, S. 2018. History of AI [Online].Available at: https://towardsdatascience.com/history-of-ai484a86fc16ef[Accessed on 30/11/2018] 30

Press, G. 2016. A Very Brief History of Artificial Intelligence (AI)[Online]. Available at:https://www.forbes.com/sites/gilpress/2016/12/30/a-very-short-history-of-artificial-intelligenceai/#d89c7b16fba2 [Accessed on 30/11/2018] 31 Griffin, A. 2017. Saudi Arabia grants citizenship to a robot for the first time ever [Online]. Available at: https://www.independent.co.uk/life-style/gadgets-and-tech/news/saudi-arabia-robot-sophiacitizenship-android-riyadh-citizen-passport-future-a8021601.html [Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 8

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

LEGAL FRAMEWORK Research and Technological Development Policy Articles 179 and 180 of the Treaty of Functioning of the European Union (TFEU) 32 indicate the objectives of the Union’s policy on research and technological development, as well as the means of pursuing these objectives. More specifically, the Union aspires to create a European Research Area (ERA) in which scientists and scientific knowledge circulate without restrictions for the purpose of creating a competitive industry and research activity. These objectives are pursued through implementation of research, technological development and demonstration programs, through cooperation with and between undertakings, research centers and universities, cooperation with third countries and organizations, dissemination and improvement of research results and the mobility of researchers in the Union. The promotion of research and technological development is a shared competence of the Union, according to article 4 par .3 TFEU, meaning that the Union and its MemberStates can both adopt legally binding acts in this area, however Member States can exercise this competence only if and to the extent that the Union has not exercised its own competence.This means that AI is an issue that in first place is regulated on an EU-level and that Member-States cannot legislate upon it as long as EU legislation is on place. Member States can adopt legally binding acts, however, once EU ceases to exercise its competence, e.g. by repealing an act without simultaneously replacing it.

Digital Single Market Strategy During the recent years, the EU has been working on various initiatives and legislative packages that unleash elements of AI, without, however, following a clear AI-focused approach. First and foremost, AI can be identified as an integral part of the Digital Single Market Strategy (COM (2015)192),the purpose of which is, inter alia, to strike a balance between the free transboundary flow of goods, services, capital and data in the digital environment and the protection of consumers’ rights and each user’s personal data, as well as the respect of intellectual property rights33. To this purpose, the Commission has adopted a proposal (COM(2018)234) on the revision of the Directive 2003/98/EC (as revised by Directive 2013/37/EU) on the re32

EU-Lex, 2017. Treaty of Functioning of the European Union. [Online]. Available at: http://eurlex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:12012E/TXT&from=EN [Accessed on 30/11/2018] 33 European Commission, 2018. Shaping the Digital Single Market [Online]. Available at: https://ec.europa.eu/digital-single-market/en/policies/shaping-digital-single-marke t [Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 9

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide use of public sector information, by reducing market entry barriers, such as the fees imposed by public authorities for the re-use of their data, and enabling the access to new types of public data, such as research data stemming from public funding 34. It has also updated its Recommendation on access to and preservation of Scientific Information (Commission Recommendation (EU) 2018/790). In addition, it is crucial for the development of AI that the European Commission has proposed (COM (2016) 593) the revision of the Directive 2001/29/EC by the establishment of a mandatory exception from intellectual property rights regarding text and data mining activities, limiting however its scope only to cultural and research organizations35.Text and data mining is the process employing software for deriving high-quality information from various text materials and databases and could greatly contribute to the scientific progress, by allowing researchers to discover trends and patterns not detectable through usual human reading36. What is more, the Commission has proposed (COM(2017)010) the replacement of the Directive 2002/58/EC by a Regulation on Privacy and Electronic Communications3738, which supplements the General Data Protection Regulation EU/2016/679 regarding electronic communications data that qualify as personal data. Both GDPR and e-privacy regulations establish the prerequisites for a more transparent and responsible use of AI applications whose operation is contingent upon personal data. Finally, AI has also been identified as part of the Commission’s strategy to digitize industry (COM(2016)180) and a renewed EU Industrial Policy Strategy (COM(2017)479)39.

European Commission, 2018. Proposal for a revision of the Public Sector Information (PSI) Directive [Online]. Available at:https://ec.europa.eu/digital-single-market/en/proposal-revision-public-sectorinformation-psi-directive[Accessed on 30/11/2018] 35

European Commission, 2018. Modernization of the EU Copyright rules [Online]. Available at: https://ec.europa.eu/digital-single-market/en/modernisation-eu-copyright-rules [Accessed on 30/11/2018] 36

Borghi, M. n.d. Text and Data Mining.[Online]. Available at: https://www.copyrightuser.org/understand/exceptions/text-data-mining/ [Accessed on 30/11/2018] 37 European Commission, 2018. Modernization of the EU Copyright rules [Online]. Available at: https://ec.europa.eu/digital-single-market/en/modernisation-eu-copyright-rules [Accessed on 30/11/2018] 38 European Commission, 2018. Stronger privacy rules for electronic communications[Online]. Available at:https://ec.europa.eu/digital-single-market/en/news/stronger-privacy-rules-electroniccommunications[Accessed on 30/11/2018] 39

European Commission, 2018.Communication Artificial Intelligence for Europe [Online]. Available at: https://ec.europa.eu/digital-single-market/en/news/communication-artificial-intelligence-europe [Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 10

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

Communication “Artificial Intelligence in Europe” In 2017, the European Council, the European Parliament and the European Economic and Social Committee initiated for the first time multifaceted and rigorous deliberations specifically on Artificial Intelligence40. The European Parliament, more specifically, adopted on 16 February 2017 a resolution containing the 2015/2103 (INL)Report of the Committee on Legal Affairs with recommendations to the Commission on Civil Law Rules on Robotics41. It is a comprehensive, not legally binding document proposing, inter alia: a) the adoption ofcommon Union definitions of cyber physical systems,

autonomous systems and smart autonomous robots; b) the creation of an EU Agency for Robotics and Artificial Intelligence providing

technical, ethical and regulatory expertise on robotics to public bodies and managing a system of registration of advanced robots; c) the adoption-regarding liability for damage caused by robots- either of strict

liability (no fault required) or of liability of a person who was able to minimize the risks, proportionate to the level of instructions provided and the degree of autonomy of the robot; d) the introduction of a mandatory insurance scheme for robot users and of a

compensation fund subsidiary to insurance policies not covering the risk of damage caused by robots; e) a draft Code of Ethical Conduct for Robotics Engineers promoting the

principles of beneficence (robots acting in the best interests of human beings), non-maleficence (robots not harming human beings), autonomy (voluntary nature of the human interaction with robots) and justice (fair distributions of the benefits enjoyed by the use of robotics and the advances in the field); f)

a draft Code for Research Ethics Committees, reviewing ethics in an independent, timely and properly informed manner.

European Commission, 2018.Communication Artificial Intelligence for Europe [Online]. Available at: https://ec.europa.eu/digital-single-market/en/news/communication-artificial-intelligence-europe [ Accessed on 30/11/2018] 41 European Parliament, 2017. European Parliament resolurion of 16 February 2017 with recommendations to the Commisiion on Civil Law Rules on Robotics [2015/2103[INL]] [Online]. Available at: http://www.europarl.europa.eu/sides/getDoc.do?pubRef=-//EP//TEXT+TA+P8-TA-20170051+0+DOC+XML+V0//EN [ Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 11

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide Taking these recommendations into consideration, the Commission issued a Communication, namely a policy document with no legally-binding effect, in which the Commission wishes to express its own views on a crucial issue 42 . More specifically, it issued on 25th of April its Communication 2018/237 “Artificial Intelligence for Europe”43, building a three- pillar strategy: First Pillar: Boosting the EU's technological and industrial capacity to embrace and benefit from AI technology through: a) financial support from a variety of stakeholders (European Fund for Strategic

Investments, VentureEU, Horizon Europe, national, regional and private sector resources) of AI fundamental research and development of AI-specific industrial applications; b) the establishment of AI specialized hubs across Europe, based on the existing

Digital Innovation Hubs and the development of an “AI on-demand platform” aiming to provide testing and experimenting infrastructure to Small and Medium Enterprises, including non-tech businesses that wish to explore the AI technologies. Second Pillar: Preparing for the socioeconomic changes brought by AI, namely through: a) the creation, with financial support from the European Social Fund, of

specialized (re-)training schemes in connection with the Blueprint on sectoral cooperation on skills for professional profiles which face the risk of automation; b) the support of Digital Opportunity Traineeships (2018-20) in advanced digital

skills for students and fresh graduates and the encouragement, through the Digital Skills and Jobs Coalition, of business-education partnerships attracting and retaining more AI talent; c) the integration of AI across education curricula by the European Institute of

Innovation and Technology and the enlargement of the scope of the current

42European Commission, n.d. European Judicial Network- Glossary [Online]. Available at:http://ec.europa.eu/civiljustice/glossary/glossary_en.htm[ Accessed on 30/11/2018] 43 European Commission, 2018.Communication Artificial Intelligence for Europe [Online]. Available at: https://ec.europa.eu/digital-single-market/en/news/communication-artificial-intelligence-europe [ Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 12

EUropa.S. 2019 EP- ITRE, â&#x20AC;&#x153;Realising European Artificial Intelligence Leadership and its economic and societal potentialâ&#x20AC;&#x153; Study Guide European Globalization Adjustment Fund to redundancies caused from digitalization and automation. Third Pillar: Ensuring an appropriate ethical and legal framework through: a) the creation of the European AI Alliance on the purposes of drafting in

cooperation with the European Group on Ethics in Science and New Technologies of AI ethics guidelines paying great attention to Article 2 TFEU and the EU Charter of Fundamental Rights; b) the publication of a guidance document on the interpretation of the Product

Liability Directive in light of technological developments, ensuring legal certainty for consumers and producers in case of defective products; c) the support of

research in the development of explainable AI and implementation a pilot project proposed by the European Parliament on Algorithmic Awareness Building;

d) the provision of assistance to national and EU-level consumer organizations

and data protection supervising bodies in building a solid perception of AI applications with the support of the European Consumer Consultative Group and of the European Data Protection Board.

DISCUSSION OF THE TOPIC The European Artificial Intelligence Landscape It is an undeniable fact that Artificial Intelligence has become an area of strategic importance and a key driver for economic development worldwide. European leaders have put AI at the top of their agendas so as to stay at the forefront of this technological revolution, to promote competitiveness of the European businesses and to shape the conditions for its development and use while ensuring respect for fundamental European values and principles. Towards this direction, the European Commission has undertaken a series of measures so as to put AI at the service of European citizens and economy 44 . Specifically, the European Commission is increasing its annual investments in AI by 70% under the research and innovation program Horizon 202045. The Commission has already invested significant amounts in AI, cognitive systems, robotics and emerging technologies to help European

European Commission, 2018. Artificial Intelligence[Online] Available at:https://ec.europa.eu/digitalsingle-market/en/artificial-intelligence [Accessed on 28/11/2018] 45 European Commission, 2017. Horizon 2020 strategy.[Online]Available at: https://ec.europa.eu/programmes/horizon2020/en/ [Accessed on 25/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 13

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide industries become more competitive. For the period 2018-2020 more than 1,5 billion EUR will be used to strengthen AI research centers across the EU, support the development of AI applications in key sectors from transport to health and also reinforce the establishment of an “AI-on demand platform” that will provide access to relevant AI resources in the EU for all users46. Additionally, the European Fund for Strategic Investments47 will be mobilized to provide companies and start-ups more than 500 million EUR in total investments by 2020 on AI technologies48. The European Commission in order to prepare for socio-economic changes arising from the use of AI technologies, is encouraging Member States to modernize their education and training systems, based on the European Pillar of Social Rights49. The Commission also plans to support business-education partnerships, set up dedicated training schemes and support digital skills, competences in science, technology, engineering and mathematics (STEM). What is more, EU’s next multiannual financial framework (2021-2027) will include strengthened support for training in advanced digital skills, including AI-specific expertise50. Furthermore, since Artificial Intelligence may raise new ethical and legal questions related to liability or potentially biased decision-making, great emphasis is given by the Commission on ensuring a legal and ethical framework regulating AI. Towards this direction, recently 52 experts have been appointed to the new High Level Expert Group on Artificial Intelligence51, consisting of representatives of academia, business and civil society. The Group will provide useful recommendations on how to address mid-and long-term challenges and barriers related to AI. One of its main competences is the drafting of ethics guidelines that will elaborate the work of the

European Commission, 2018. Artificial Intelligence. [Online] Available at: https://ec.europa.eu/digital-single-market/en/artificial-intelligence [Accessed on 29/11/2018]. 47 European Commission,2018. European Fund for Strategic Investments.[Online] Available at: http://ec.europa.eu/growth/industry/innovation/funding/efsi_en [Accessed on 25/11/2018] 48 European Commission, 2018. Factsheet on Artificial Intelligence for Europe.[Online]. Available at: file:///C:/Users/user/Downloads/FactsheetArtificialIntelligenceforEurope.pdf [Accessed on 2/12/2018] 49 European Commission,2018. European Pillar of Social Rights.[Online] Available at: https://ec.europa.eu/commission/priorities/deeper-and-fairer-economic-and-monetaryunion/european-pillar-social-rights_en [Accessed on 25/11/2018] 50 European Commission, 2018. Artificial Intelligence: Commission outlines a European approach to boost investment and set ethical guidelines.[Online] Available at: http://europa.eu/rapid/pressrelease_IP-18-3362_en.htm [Accessed on 29/11/2018] 51 European Commission, 2018. High-level expert group on Artificial Intelligence.[Online] Available at: https://ec.europa.eu/digital-single-market/en/high-level-expert-group-artificial-intelligence [Accessed on 28/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 14

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide European Group on Ethics in Science and New Technologies52. These draft guidelines are expected to be finalized by the end of 2018, be presented to the Commission at the beginning of 2019 and cover a large scale of issues including protection of privacy and personal data, transparency, safety and consumer protection. The High Level Group will also support the Commission in building a broad community of stakeholders through the European AI Alliance53. The European AI Alliance is a forum/platform created by the Commission which encourages broad participation in the policy-making process of the European Commission through an open discussion of all aspects of AI development and its impacts. The Alliance aims at stimulating debate on AI, sharing of best practices as well as contributing to the drafting of AI ethics guidelines.54 It is also worth mentioning that on April 2018 (EU Digital Day), 25 European countries signed a Declaration of cooperation on Artificial Intelligence(AI)55.Through this Declaration, Member- States agreed to collaborate so as to ensure EU’s competitiveness in the research and deployment of AI and to deal with social, economic, ethical and legal questions arising from its use. The signatories to the Declaration will engage in a continuous dialogue with the Commission, which will act as a facilitator, aiming at fostering the development of AI in Europe, based on the following key principles: a)access to public sector data, b)mitigation of the socioeconomic challenges brought about by AI-based technologies and c)development of a legal and ethical framework for AI built upon EU fundamental rights and values. 56

European Commission, 2017. The European Group on Ethics in Science and New Technologies(EGE).[Online] Available at: https://ec.europa.eu/research/ege/index.cfm [Accessed on 29/11/2018] 53 European Commission, 2018. The European AI Alliance.[Online] Available at: https://ec.europa.eu/digital-single-market/en/european-ai-alliance [Accessed on 29/11/2018] 54 Ibid 55 European Commission, JRC science hub communities,2018. EU declaration on cooperation on Artificial Intelligence.[Online] Available at: https://ec.europa.eu/jrc/communities/community/digitranscope-digital-transformation-andgovernance-human-society/document/eu-declaration [Accessed on 26/11/2018] 56 European Commission,2018. EU Member states sign up to cooperate on Artificial Intelligence[Online] Available at:https://ec.europa.eu/digital-single-market/en/news/eu-memberstates-sign-cooperate-artificial-intelligence [Accessed on 28/12/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 15

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

The startup, 2018, A timeline for Europe’s AI strategy(online). Available https://medium.com/swlh/a-timeline-for-europes-ai-strategy-d2fc9f7bbcf1 [Accessed 25/11/2018]

at: on

The Economic and Societal Potential of AI The Economic Potential of AI

Combined with key technologies, such as the Internet of Things, Big Data Analytics or blockchain, AI has the potential to create a new basis for economic growth and to be the driving force of productivity and job creation. As a matter of fact, AI could contribute more than 13,3 trillion EUR to the global economy by 2030, more than the current output of China and India combined57. However, the economic impact of AI is prominent mainly on businesses since it has changed the entire business value chain by automating existing business processes, uncovering new value from data and augmenting human decisions and actions. AI can therefore be considered as a new factor of production, alongside the traditional ones of capital and labor 58. The economic impact of AI on businesses is based on three pillars: productivity gains from automation, increased consumer demands and innovation dissemination 59.

European Commission, 2018. Factsheet on Artificial Intelligence for Europe.[Online]. Available at:

file:///C:/Users/user/Downloads/FactsheetArtificialIntelligenceforEurope.pdf [Accessed on 2/12/2018] 58

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide More specifically, unlike traditional automation solutions, Artificial Intelligence– powered innovation, enables massive productivity gains for businesses. Robotic and cognitive process automation, machine learning and multi-agent collaborative systems are helping companies maximize value by improving input productivity. Manufacturing and transport are the capital-intensive sectors that will benefit the most from productivity gains60. What is more, it is highly possible that in the upcoming years consumer demand will be driven by the availability of personalized and high quality AI-based products and services. It has even been forecasted that the gains derived from the consumer demand will overcome the ones deriving from productivity. AI has also the ability to stimulate innovation through immediate data analysis, reduction of R&D costs and creation of new possibilities for experimentation. For example, autonomous cars can lead to innovations beyond the automotive industry such as mobile services or insurance61. From business perspective, one of the most commonly reported benefits of AI is improved decision making processes and personalized customer services. AI combined with analytics, enables industries to make more effective and quicker decisions by expanding beyond human reach the number of empirical observations on which a decision is taken62. AI technologies also enables companies to better understand consumer behavior, anticipate their needs and enhance customer experience to raise perceived value leading to increased loyalty and brand equity. By combining external social data and internal structured data to respond to real time consumer demands, AI creates new opportunities to increase personalized services and customer-driven innovation63. AI implementation tends to be strong in sectors that are already prominent digital adopters64. Industry sectors that are currently leading in AI deployment worldwide are(among others) energy, automotive and telecommunications. Ιn the energy sector, AI can analyze massive amount of data regarding energy supply and consumption, bringing stability and efficiency in electricity grids fuelled by different resources such as wind, solar, carbon fuels. Through the use of advanced machine learning, autonomous energy grids can self-organize and control themselves so as to create resilient, reliable and affordable optimized energy systems.

Ibid Ibid 62 European Parliament,2018. European Artificial Intelligence (AI)Leadership, the path for an integrated vision[Online]Availableat:http://www.europarl.europa.eu/thinktank/en/document.html?reference=IP OL_STU(2018)626074 [Accessed on 29/11/2019] 63 Ibid 64 Ibid 61

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EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide In general, European Union as a whole, is not lagging behind in developing AI technologies, since it runs second worldwide in terms of number of AI start-ups and there are several examples of European AI companies65. The EU has also a strong world-leading AI research community, innovative entrepreneurs and deep-tech startups. However, despite the fact that across the European industry there is a huge interest to deploy AI solutions, only 20% of European organizations have actually used these technologies and this figure is much lower in the case of SMEs (Small and Medium Enterprises)66. Specifically in 2017, 25% of EU large enterprises and 10% of SMEs used big data analytics and only one in five SMEs was highly digitized 67. The creation of the Digital Single Market, including the trans-border free flow of data, can be a key driver for the uptake of AI for European businesses. Most of the potential of deploying AI at the European level is linked to progress made in digitalization, data access and in deepening the Digital Single Market. Thus, the Digital Single Market strategy68 and the digitalization of European industries can be the driving forces for the incorporation of AI technologies and systems on European businesses and eventually for the boost of EU’s research and industrial capacity. The Societal Potential of AI

Apart from transforming economies, Artificial Intelligence has the potential to transform societies in multiple ways. First and foremost, AI is an employment generator, since it has created multiple jobs in comparison to the ones that were eliminated due to automation and digitization. More specifically, according to the “The Futures of Jobs 2018” Report from the World Economic Forum, AI-powered machines and software in the workplaces are estimated to cause 75 million jobs to be lost, but simultaneously create 133 million new ones by 2022, meaning the creation of additional 58 million employment opportunities 69 . Another example is the contribution of AI to social inclusion of elderly people who

Ibid EU-lex,2018.Communication on Artificial Intelligence for Europe(Online)Available at: file:///C:/Users/user/Downloads/CommunicationArtificialIntelligence%20(3).pdf [Accessed on30/11/2018] 67 European Commission, 2017.Harnessing the economic benefits of Artificial Intelligence.[Online] Available at: https://ec.europa.eu/growth/toolsdatabases/dem/monitor/sites/default/files/DTM_Harnessing%20the%20economic%20benefits%20v3 .pdf [Accessed on2/12/2018] 68 European Commission,2018. Shaping the Digital Single Market[Online] Available at: https://ec.europa.eu/digital-single-market/en/policies/shaping-digital-single-market [Accessed on 29/11/2018] 69 World Economic Forum, 2018. The Future of Jobs 2018 Online] Available at: http://reports.weforum.org/future-of-jobs-2018/ [Accessed on 30/11/2018] 66

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EUropa.S. 2019 EP- ITRE, â&#x20AC;&#x153;Realising European Artificial Intelligence Leadership and its economic and societal potentialâ&#x20AC;&#x153; Study Guide are viewed as the most isolated population group globally, through human-centered platforms that provide assistance and support in areas such as medicine reminders, grocery shopping, physical exercise and maintenance of contact and connection with family, friends and relatives70.AI has also been employed for the social inclusion of individuals with disabilities, for instance, through mobile applications using optical character recognition, natural language processing and other state-of-the-art AI technologies to provide audio descriptions of a visually impaired personâ&#x20AC;&#x2122;s immediate environment71. Another useful application of AI has been observed in the field of healthcare, since AI technologies can provide early detection of diseases and targeted treatments. For example, a Harvard-based group of pathologists created an AI-based technique to identify breast cancer cells with 96% accuracy versus 92% of doctors unassisted by AI, even achieving 99,5% accuracy in cases of humans and AI combining forces72. AI can also be employed for the purposes of environmental protection, namely through operational software assisting municipal utilities in effective management of water and wastewater and even generating savings by pumping when electricity rates are at their lowest73. Finally, AI technologies can improve the delivery of public services in an obvious manner. Specifically, they can support emergency services in analyzing thousands of cases of transport data collected from devices installed in emergency vehicles in order to drastically reduce the transportation time of patients74. They are also able to assist the effective and faster delivery of criminal justice though developments of facial recognition making the fingerprint obsolete75.

Future Challenges Despite the fascinating impact of AI technology on European businesses but also on the society as a whole, the development of AI in Europe is facing certain barriers and challenges which are slowing down AI adoption. In short, the types of barriers arising from the use of AI can be identified: a) those related to legal issues and regulatory

Accenture, 2018. Realizing the Economic and Societal Potential of Responsible AI in Europe [Online]. Available at: https://ec.europa.eu/digital-single-market/en/policies/shaping-digital-singlemarke t [Accessed on 30/11/2018] 71 Ibid 72 Ibid 73 Ibid 74 Ibid 75 Delgrado, A. 2018.Three Impacts of Artificial Intelligence on Society.[Online].Available at: https://www.forbes.com/sites/forbestechcouncil/2018/06/13/three-impacts-of-artificial-intelligenceon-society/#5e65e3146ec0 [Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 19

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide risks, b)those concerning internal technical capacity and infrastructure, and c) those related to ethical issues and social acceptance of AI76. Legal Issues

The biggest challenge faced by the European Union when it comes to AI regulation is the creation of a legal and regulatory framework which will be flexible enough to adapt to technological progress while respecting key fundamental principles such as data privacy and liability rules. Specifically, data have been defined as the “new oil” of the data-driven economy77. Access to huge streams of data is necessary in order to build an AI system. For example, machine learning (a type of AI) works by identifying patterns in available data and then applying the knowledge to the new data. Thus, regulations that make collection of data harder and more expensive may hinder the deployment of the most innovative AI applications. A number of EU existing and planned regulations have a significant impact on the use of AI technologies. The General Data Protection Regulation (GDPR)78, that came into force on May 25,2018 is a legally binding document that has been instrumental to lay down the foundations for a more reliable and trustable use of AI applications. GDPR ensures a high standard of personal data protection, including the principles of data protection by design and by default, while it has provisions on decision-making based solely on automated processing, including profiling (AI-based systems)79. In such cases, data subjects have the right to be provided with meaningful information about the logic involved in the decision. Since access to data is a key ingredient for a competitive AI landscape, public policy should encourage the wider availability of privately-held data, while ensuring full respect for legislation on personal data. Towards this direction, the importance of non-personal data reuse, including for AI training purposes should be recognized by European companies. Special emphasis should be given on regulatory solutions designed to favor the collection, use and sharing of data across the EU so as to feed AI systems, while maintaining the highest standards of protection of personal data as mandated by the GDPR80.

European Parliament,2018. European Artificial Intelligence (AI)Leadership, the path for an integrated vision[Online]Availableat:http://www.europarl.europa.eu/thinktank/en/document.html?reference=IP OL_STU(2018)626074 [Accessed on 29/11/2019] 77 European Commission(2018),The Age of Artificial Intelligence, Towards a European strategy for human-centric machines(Online) Available at: https://ec.europa.eu/epsc/sites/epsc/files/epsc_strategicnote_ai.pdf [Accessed on26/11/2018] 78 EU-lex,2018.General Data Protection Regulation(Online) Available at: https://eurlex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32016R0679 [Accessed on 28/11/2018] 79 European Commission, 2018. A European Approach on Artificial Intelligence[Online] Available at: http://europa.eu/rapid/press-release_MEMO-18-3363_en.htm [Accessed on 26/11/2018] 80 Ibid EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 20

EUropa.S. 2019 EP- ITRE, â&#x20AC;&#x153;Realising European Artificial Intelligence Leadership and its economic and societal potentialâ&#x20AC;&#x153; Study Guide What is more, addressing liability issues and developing related legal norms is becoming more and more important as AI applications are becoming part of our lives. The complex enabling ecosystem and the feature of autonomous decisionmaking, requires a reflection about the suitability of established norms on liability81. For instance, advanced robots and Internet of Things products empowered by AI may act in ways that were not envisaged at the time when the system was first put into operation and can possibly cause damage to the consumer. Thus, establishing liability rules for existing and prospecting AI algorithms can be a difficult task, taken into account the wide variety of stakeholders involved, the lack of interpretation of many kinds of AI learning systems as well as the controversial issue of whether or not AI systems can be deemed to be subjects of law82. The EU has liability rules for defective products, such as the Product Liability Directive83 dating from 1985 which strikes a careful balance between protecting consumers and encouraging businesses to market innovative products. In principle, if AI is integrated into a product and a defect can be proven in a product that caused material damage to a person, the producer will be liable to pay the compensation84. However, some experts highlight that the legal framework related to AI-enabled decision-making might require the creation of specific regulations, due to the difficulty of predicting the future behaviors of many complex AI systems. For this reason, the Commission plans to issue an interpretative guidance by mid-2019 clarifying concepts of the Directive in view of the new technologies providing better legal certainty for consumers and producers85. A high level of safety and an efficient redress mechanism for victims in case of damages will help to build user trust and social acceptance of these technologies. Technical Issues

One of the most important constraints on the adoption of AI is the lack of internal technical capacity on businesses and skills scarcity. In particular, all economic sectors

Ibid EU-lex,2016.Directive 85/374/EEC-product liability(Online) Available at: https://eurlex.europa.eu/legal-content/EN/TXT/?uri=LEGISSUM%3Al32012 [Accessed on 28/11/2018] 84 European Commission, 2018.A European approach on Artificial Intelligence[Online] Available at:http://europa.eu/rapid/press-release_MEMO-18-3363_en.htm [Accessed on 26/11/2018] 85 European Parliament,2018. European Artificial Intelligence (AI)Leadership, the path for an integratedvision[Online]Availableat:http://www.europarl.europa.eu/thinktank/en/document.html?re ference=IPOL_STU(2018)626074 [Accessed on 29/11/2019] 83

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EUropa.S. 2019 EP- ITRE, â&#x20AC;&#x153;Realising European Artificial Intelligence Leadership and its economic and societal potentialâ&#x20AC;&#x153; Study Guide are facing the need to adapt their workforceâ&#x20AC;&#x2122;s skill sets86. To do so, they can either hire external digital scientists or they can rely on their own resources. However, there is a general shortage of digital talents and data scientists in Europe 87 . Therefore, companies need to upskill and retrain their own human resources, which is a complex and costly process. At the same time, many decision makers are not sufficiently digitally-educated to identify the skillsets employees need to work alongside AI-directed technology. Thus, sourcing the right digital assets and skills is a critical challenge for company leaders wishing to effectively deploy AI88. Moreover, the EU needs to focus efforts to help workers in jobs which are likely to be more transformed or to disappear due to automation, robotics and AI. To manage the AI transformation, workers whose jobs are changing or may disappear due to automation must acquire the skills and knowledge they need to master new technology and be supported through labor market transitions89. This anticipatory approach is a cornerstone of a human-centric, inclusive approach to AI and will require significant investment. National schemes and support from the private sector will be essential for providing such up-skilling and training90. In the area of machine learning algorithms and other digital innovations, AI has also brought about new job profiles. In general, the number of specialists in information and communication technologies in the EU has grown annually by 5% since 2011, creating 1,8 million jobs91. However, there are at least 350.000 vacancies for such professionals in the EU, pointing to significant skills gap and creating the need to increase the number of people trained in AI and encourage diversity92. More women and people from diverse backgrounds, including people with disabilities, need to be involved in the development of AI, starting from inclusive AI education and training 86

European Commission, 2017.Harnessing the economic benefits of Artificial Intelligence.[Online] Available at: https://ec.europa.eu/growth/toolsdatabases/dem/monitor/sites/default/files/DTM_Harnessing%20the%20economic%20benefits%20v3 .pdf [Accessed on2/12/2018] 87 European Parliament,2018. European Artificial Intelligence (AI)Leadership, the path for an integratedvision[Online]Availableat:http://www.europarl.europa.eu/thinktank/en/document.html?re ference=IPOL_STU(2018)626074 [Accessed on 29/11/2019] 88 Ibid 89 Ibid 90 European Commission(2018),The Age of Artificial Intelligence, Towards a European strategy for human-centric machines(Online) Available at: https://ec.europa.eu/epsc/sites/epsc/files/epsc_strategicnote_ai.pdf [Accessed on26/11/2018] 91 EU-lex,2018.Communication on Artificial Intelligence for Europe(Online),Available at: file:///C:/Users/user/Downloads/CommunicationArtificialIntelligence%20(3).pdf [Accessed on30/11/2018] 92 European Commission, 2017.Harnessing the economic benefits of Artificial Intelligence.[Online] Available at: https://ec.europa.eu/growth/toolsdatabases/dem/monitor/sites/default/files/DTM_Harnessing%20the%20economic%20benefits%20v3 .pdf [Accessed on2/12/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 22

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide and the support of interdisciplinary. Dedicated training schemes and encouragement of social partners to include AI and its impact on the economy and employment in their joint work programs at sectoral and cross-sectoral level, can encourage more young people to choose AI subjects and related fields as a career93. Ethical Issues

It is an undeniable fact that the extensive use of AI systems raises serious ethical questions and creates uncertainty, restraining users as well as entrepreneurs from further using the outcomes of AI. The critical-unanswered – key questions are mainly related to the issue of transparency of algorithms and reliability. Many algorithms relying on machine learning are so complicated that nobody, ever their programmers are able to check and understand how their decisions are made. This phenomenon is known as “black box algorithm”94 given that the input and output are known but the process between them remains unknown. Thus, the difficulty or even impossibility to check how AI reaches its conclusions creates a lack of accountability that eventually harms trust in AI. For example, how should a self-driving car choose between saving its passengers or pedestrians95? The AI Ethics Guidelines which are going to be developed by the end of 2018, on the basis of the EU’s Charter of Fundamental Rights96 will address issues such as fairness, algorithmic transparency and safety, but also will examine the impact of AI applications on fundamental rights including privacy, dignity, consumer protection and non-discrimination. Given the scale of the challenge associated with AI, the full participation of all actors including businesses, academics, policy makers and representatives of civil society is essential97. In general, ethical issues raised by AI technologies should be more extensively analyzed and appropriate ethical policies should be developed. This implies creating a coherent and trusted regulatory framework which can be achieved by regulating broad AI principles rather than specific algorithms, which is deemed to be more effective and cost-efficient. This general ethical framework should be inspired by the principle of human-centric AI(AI 93

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide tightly developed under human oversight and control), embed the principles of fairness and justice in algorithms applied in all phases of AI systems’ design,implementation and testing, while following through bias complaints and other undesired effects reporting98. Major Competitors of the EU in the Global Market

In the US, private sector is the driving force of AI investments, while AI governance is an area in which universities and think tanks have a leading role99. Currently the government follows a free market-oriented approach by not adopting no central AI policy and investment plan and the funding of individual projects is done by military and paramilitary departments 100 . US AI landscape possesses a strong digital environment around the hubs of Boston, Seattle, New York, and Silicon Valley which attract talents from leading universities. It also relies on a great degree on the ICT world leading AI companies, such as Amazon, IBM, Microsoft, Facebook and Google101. China, on the other hand, has adopted a government driven approach. In addition, China’s largest assets are the size of its population and the citizens’ willingness to provide access to their personal data to abide by state rules102. In 2017, the government issued a national plan aiming to make China the world leader in the development of AI and promote the country as global AI innovation hub by 2030103.The plan will be implemented in three steps: a) by 2020 China aims to have a globally-leading rate of general development and application, ensuring at the same time the growth of AI industry; b) by 2025 AI will be a major force of economic and industrial reform via the extensive deployment of AI across different sectors, including defense industry;

European Commission(2018),The Age of Artificial Intelligence, Towards a European strategy for human-centric machines(Online) Available at: https://ec.europa.eu/epsc/sites/epsc/files/epsc_strategicnote_ai.pdf [Accessed on26/11/2018] 99 Delponte, L. 2018. European Artificial Intelligence (AI) leadership, the path for an integrated vision [Online]. Availableat:http://www.europarl.europa.eu/RegData/etudes/STUD/2018/626074/IPOL_STU(2018)62 6074_EN.pdf [Accessed on 30/11/2018] 100 Ibid 101 Ibid 102 Ibid 103 Ibid EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 24

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide c) and, finally, by 2030 China will have became the global leader of artificial intelligence innovation104. At the same time, the plan aims to attract the best data science talents in a global level.

EUROPEAN POLITICAL PARTIES’ POSITION European People’s Party (EPP) The centre-right oriented EPP has the leading political party in the European Parliament since 1999105. EPP MEPs believe that robotics and AI are no longer a remote possibility and that the establishment of EU-wide rules is necessary for the full exploitation of their economic potential, the promotion of innovation and the creation of more jobs106. They also underline the importance of the competitiveness of the European industry, companies and SMEs and the need to raise awareness for the benefits and drawbacks of these technologies, especially regarding liability, ethical, legal and employment implications107. Finally, they stress out that robots can never enjoy the same legal personality with humans, no matter how autonomous they become, however they recognize the need to explore all possible solutions regarding the bearer of the liability for damages caused by robots and accidents of automated vehicles108.

Socialists and Democrats (S&D) The Group of the Progressive Alliance of Socialists and Democrats in the European Parliament, as officially named, is the second largest parliamentary force and also the second oldest political party of the European Parliament, promoting centre-left values109. S&D prioritizes the protection of the most vulnerable groups from AI implications through solidarity, planning and investment. More specifically, it pursues better-managed digitalization for the benefit of workers and consumers,

104

Ibid

105

European People’s Party, n.d. History [Online]. Available at:https://www.epp.eu/about-us/history/ [Accessed on 30/11/2018] 106 EPP Group, 2017. AI: no longer a thing of the future [Online]. Available at: https://www.eppgroup.eu/newsroom/news/ai-no-longer-a-thing-of-the-future [Accessed on 30/11/2018] 107 Ibid 108 Ibid 109 Socialists and Democrats, n.d. About Us [Online]. Available at: https://www.socialistsanddemocrats.eu/about-us [ Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 25

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide adjustment of social security and employment regulations and more consultations to protect employees, increase in the funding of training and retraining initiatives for professionals at risk of redundancy due to automation, innovation networks 110 . Moreover, they hold that networks operating at a regional level are able to support the European industry, and ask for a more active involvement of the European Investment Bank. Finally, the MEPs of this party have underlined that a stable legal framework, based on the European humanistic values can act both as an asset for European businesses and a safeguard for the prosperity and security of the Union’s citizens and that they firmly support the possibility of the creation of a European agency for robotics and artificial intelligence. Since it can enable relevant public actors to acquire a clear perspective on opportunities and challenges ahead of these technologies111.

European Conservatives and Reformists (ECR) The centre-right ECR Group is the third largest political group in the European Parliament, aiming to reform the EU based on euro-realism and emphasing on the respect of the sovereignty of Member-States112. ECR has not officially adopted a clear position of the topic yet. However, one of its leading figures, Syed Kamall, believes that Artificial Intelligence means not only loss of jobs especially in the fields of manufacturing and transportation, but also creation of thousands new ones in other sectors of economy and overcompensation of the lost jobs in the field of healthcare113. In addition, the Party’s MEPs underline the need of reform of EU’s education, vocational training and social policy, as well as the risk of a high concentration of wealth in the hands of a minority114. They also retain some doubts regarding the implementation of the so-called "universal approach to action" on this matter, and stress that the different stages of technological advances in the Member

110

Socialists and Democrats, n.d.Industry, Research and Energy [Online]. Available at:https://www.socialistsanddemocrats.eu/policies/industry-research-energy-0 [Accessed on 30/11/2018] 111

European Parliament, 2017. Civil Law Rules on Robotics debate [Online]. Available at: http://www.europarl.europa.eu/sides/getDoc.do?type=CRE&reference=20170215&secondRef=ITEM014&language=EN&ring=A8-2017-0005 [Accessed on 30/11/2018] 112 ECR Group, n.d. About ECR Group [Online]. Available at: https://ecrgroup.eu/about [Accessed on 30/11/2018] 113

Syed Kamall, 2018, AI means a bright future for jobs too[Online]. Available at: http://syedkamall.co.uk/ai-means-a-bright-future-for-jobs-too [Accessed on 30/11/2018] 114 European Parliament, 2017. Civil Law Rules on Robotics debate [Online]. Available at: http://www.europarl.europa.eu/sides/getDoc.do?type=CRE&reference=20170215&secondRef=ITEM014&language=EN&ring=A8-2017-0005 [Accessed on 30/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 26

EUropa.S. 2019 EP- ITRE, â&#x20AC;&#x153;Realising European Artificial Intelligence Leadership and its economic and societal potentialâ&#x20AC;&#x153; Study Guide States from the central and peripheral regions of the European Union are not given due consideration and clearly oppose to the creation of an EU AI and Robotics Agency, because it obliges citizens to pay much more social security costs to finance a robot insurance scheme115. Alliance of Liberals and Democrats for Europe (ALDE) ALDE is currently the fourth largest political party of the European Parliament and it is home to liberal democratic values116. ALDE MEPs have criticized the outcome of the Delvaux report as focusing only to the negative impacts of AI and robotics and not promoting realistic solutions for the promotion of innovation and job creation in the internal market, pointing us out the fear among the regulatory bodies 117. They stress the importance of providing a stable framework creating legal clarity for companies and consumers, the need to allow the further manufacturing and use of these technologies in Europe both by the industry and the consumers and they clearly oppose to imposing a tax on robots, since such a measure will extinguish innovation across Europe118. European United Left/ Nordic Green Left (GUE/NGL) The left-wing parliamentary group of GUE/NGL is currently the fifth largest one and comprises of national political parties with socialist and communist orientation 119. For GUE/NGL AI and robotic raise various ethical and legal issues and undermine job security, promote precariousness, unemployment and erosion of social and labour rights120. In any case, they point out that these technologies mean the end of the single-job career and that currently EU faces the challenge of the modification of education system since the history repeats itself as the societies face a situation

115

Ibid ALDE, n.d. About the ALDE Party [Online]. Available at:https://www.aldeparty.eu/about/the-aldeparty [Accessed on 30/11/2018] 117 ALDE, 2017. Robotics and AI: Parliament misses opportunity to propose a forward- looking and pro innovation EU policy [Online]. Available at: https://alde.eu/en/news/845-robotics-and-ai-parliamentmisses-opportunity-to-propose-a-forward-looking-and-pro-innovation-eu-policy/ [Accessed on 30/11/2018] 116

118

Ibid GUE/NGL, n.d. About the Group [ [Online]. Available at: http://www.guengl.eu/group/about [Accessed on 30/11/2018] 120 GUE/NGL, 2017. Developments in robotics must be means to create new jobs [Online]. Available at: http://www.guengl.eu/news/article/developments-in-robotics-must-be-means-to-create-new-jobs [Accessed on 30/11/2018] 119

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EUropa.S. 2019 EP- ITRE, â&#x20AC;&#x153;Realising European Artificial Intelligence Leadership and its economic and societal potentialâ&#x20AC;&#x153; Study Guide similar to the replacement of industrial workers by machines in the past121. Its MEPs worry about the lack of explicit condemnation of the use of AI for security and military purposes and object to the creation of a European agency, since they believe that it will restrict the ability of Member States to tailor their policies to their own interests122. However, some MEPs have expressed the idea that societies have been able to adapt during the previous three industrial revolutions and that AI does not necessarily always entail job loss, but to job creation123.

Conclusions In conclusion, Artificial Intelligence, albeit not being a new technology, has become an area of strategic importance for European leaders in the last few decades. This technological revolution has caused fascinating changes in business models and value chains, while at the same time it has brought solutions to many societal problems, from treating diseases to fighting climate change and anticipating cybersecurity threats. Thus, the use of AI technology offers a variety of benefits for the economic landscape of the European Union, but also for the society and the global community as a whole. As obvious, the European Union needs to have a coordinated approach to make the most of the opportunities offered by AI and to address any possible challenges124. Towards this direction, the European Commission has undertaken important measures by introducing several initiatives, programs and regulatory frameworks that will ensure competitiveness and shape the conditions for responsible use of AI systems, always under the light of fundamental European values and principles125. However, in order to ensure a competitive European AI landscape that will benefit people and the society as a whole there are certain legal, technical and ethical issues that need to be carefully addressed. Specifically, there is an increased need for investments, qualified personnel, technical training, regulatory requirements, liability rules and access to high quality data, so as to create the basis for a holistic human-centric AI strategy. Its success depends on the efforts of the EU institutions, Member- States and most importantly on the active role of the ITRE Committee, 121

Ibid Ibid 123 Ibid 122

124

EU-lex,2018.Communication on Artificial Intelligence for Europe(Online),Available at: file:///C:/Users/user/Downloads/CommunicationArtificialIntelligence%20(3).pdf [Accessed on30/11/2018] 125 European Commission, 2018. Artificial Intelligence[Online] Available at:https://ec.europa.eu/digital-single-market/en/artificial-intelligence [Accessed on 28/11/2018] EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 28

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide which is responsible for the EU’s information technology and technology-intensive manufacturing.

Glossary  AI Winter: AI winter refers to a period of time during which funding for activities geared toward developing human-like intelligence in machines is lacking. AI winter is characterized by decreased funding in AI research, but it often coincides with a drop in public interest as well.  Artificial Intelligence: Artificial Intelligence(AI) refers to systems that show intelligent behavior: by analyzing their environment they can perform various tasks with some degree of autonomy to achieve specific goals. Particular applications of AI include expert systems, speech recognition and machine vision.  Artificial Superintelligence: The final stage of AI development, in which machines outperform humans in every possible field, including general wisdom, scientific creativity and social skills. It must be pointed out however, that currently researchers have been able to achieve a satisfactory level of progress only regarding the weak AI sector and therefore the particular characteristics of strong AI and AI superintelligence theoretical and do not facilitate the distinction between them.  Big data analytics: Big data analytics is the complex process of examining large and varied sets of data to uncover information including hidden patterns, market trends and consumer preferences that can help organizations make informed business decisions.  Deep learning: Deep learning is a subset of machine learning that can be defined as a function that imitates the working of the human brain in processing data and creating patterns for use in decision making. Deep learning also has networks capable of learning unsupervised from data that is unstructured or unlabeled.  Fourth Industrial Revolution: Fourth Industrial Revolution or Industry 4.0. refers to the current and developing environment in which disruptive technologies such as robotics, virtual reality, IoT and AI change drastically everyday and working life. It builds upon the first three industrial revolutions. The first began in the 18th century with the invention of the steam engine. The Second Industrial Revolution cornerned the use of electricity to establish mass production, and the Third used electronics and information technology to lead to the automation of production.  General or Strong AI: General or strong artificial intelligence is a more advanced stage of AI development and refers to machines that possess human-level intellectual capacities and are thus able to apply understanding and reasoning to almost every task given to them rather than only to narrowly predefined problems. EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 29

EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide  Internet of Things(IoT): Internet of Things is a system of interrelated computing devices, mechanical and digital machines provided with unique identifiers and the ability to transfer data over a network without requiring human-to-human or human-to-computer interaction. IoT includes extending internet connectivity beyond standard devices to any range of dumb or non-internet-enabled devices and everyday objects.  Machine learning: Machine learning is a type of algorithm that allows software applications to become more accurate in predicting outcomes without being explicitly programmed .The basic premise of machine learning is to build algorithms that can receive input data and use statistical analysis to predict an output while updating outputs as new data become available. Machine learning algorithms are especially used in the applications of email filtering and computer vision, where it is impossible to develop an algorithm of specific instructions for performing a task.  Narrow or Weak AI: The first stage of AI development which ,focuses on the employment of a single subset of cognitive abilities leading to the specialization of a machine and its training to only specific tasks, such as chess playing.  Text and Data Mining (TDM):Text and data mining is the process employing software for deriving high-quality information from various text materials and databases and could greatly contribute to the scientific progress, by allowing researchers to discover trends and patterns not detectable through usual human reading.

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EUropa.S. 2019 EP- ITRE, â&#x20AC;&#x153;Realising European Artificial Intelligence Leadership and its economic and societal potentialâ&#x20AC;&#x153; Study Guide

Questions Raised 1. What actions have the European Union and its Member States undertaken so as to promote AI implementation and shape the conditions of its development and responsible use? 2. What is the current state of AI deployment in European companies and how can the incorporation of AI technology in European industries be further boosted? 3. How can balance between AI research and industrial applications be achieved? 4. How can the collection and sharing of data impact the deployment of AI applications and in what ways the principle of data privacy can be respected? 5. How can the European Union properly address the challenges for Intellectual Property rights emerging from the use of A.I. and the creation of works by AI-powered systems? 6. Is there a sufficient legal framework regulating liability rules of AI technology and could the Union grant AI-powered machines a legal personality? 7. What are the biggest technical challenges arising from the adoption of AI and how can the European Union properly overcome them? 8. What are the biggest ethical questions arising from the extensive use of AI systems and how the issue of transparency of algorithms can be sufficiently addressed? 9. How can the European Union prevent malevolent uses of AI, like those in weaponry and cyber conflicts? 10. How can the European Union address the short-term and long-term effects of unemployment due to digitalization and automation? 11. How can the European Union benefit from the societal potential of AI?

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EUropa.S. 2019 EP- ITRE, “Realising European Artificial Intelligence Leadership and its economic and societal potential“ Study Guide

Further Reading  European Commission Factsheet, A European Approach on Artificial Intelligence: http://europa.eu/rapid/press-release_MEMO-18-3363_en.htm  European Commission-Press Release, Artificial Intelligence: Commission outlines a European approach to boost investment and set ethical guidelines: http://europa.eu/rapid/press-release_IP-18-3362_en.htm  European Commission, Robotics and Artificial Intelligence: https://ec.europa.eu/digital-single-market/en/content/robotics-andartificial-intelligence-unit-a1  European Group on Ethics in Science and New Technologies, Statement on Artificial Intelligence, robotics and ‘autonomous’ systems:http://ec.europa.eu/research/ege/pdf/ege_ai_statement_2018.pdf  Fairhurst, J. (2010), Law of the European Union, 8th ed, Pearson Education Limited  Maastricht University, Artificial Intelligence (A.I. )and Intellectual Property(IP), a call for action: https://www.maastrichtuniversity.nl/blog/2017/10/artificial-intelligence-aiand-intellectual-property-ip-call-action  McKinsey Global Institute, 10 imperatives for Europe in the age of AI and automation: https://www.mckinsey.com/featured-insights/europe/tenimperatives-for-europe-in-the-age-of-ai-and-automation  The Economist, How can EU improve the development of AI: https://www.economist.com/leaders/2018/09/22/how-europe-can-improvethe-development-of-ai

Useful Links       

Website of the EPP party: https://www.epp.eu/ Website of the S&D party: https://www.socialistsanddemocrats.eu/ Website of ALDE party: https://alde.eu/en/ Website of ECR party: https://www.ecrgroup.eu/ Website of GUE/NGL party: http://www.guengl.eu/ AI Hub Europe: http://ai-europe.eu/ Rameesh R., What is Artificial Intelligence? In 5 Minutes(video): https://www.youtube.com/watch?v=2ePf9rue1Ao  Elon Musk’s Warning About Artificial Intelligence (video): https://www.youtube.com/watch?v=B-Osn1gMNtw EUropa.S. 2019, April 19th-22nd, Athens, Greece europas.irtea@gmail.com | www.europas.irtea.gr Page 37