AI Governance: Why Cooperation Matters

In the rapidly evolving world of artificial intelligence (AI), no single economy can manage its governance alone. As AI increasingly becomes a cornerstone of global development, regional cooperation plays a pivotal role in addressing the ethical, social and regulatory challenges posed by this transformative technology.

The Asia-Pacific region, with its mix of advanced and developing economies, offers a prime example of the potential—and necessity—of collaborative efforts in AI governance. From the region’s technological powerhouses to emerging digital players, the spectrum of AI adoption varies widely. Yet, this diversity presents a unique opportunity for cross-border cooperation, fostering knowledge-sharing, capacity building, and the development of shared governance frameworks.

The need for regional cooperation
Artificial intelligence is reshaping industries and societies at a pace never seen before. In sectors such as healthcare, education and finance, AI is driving efficiency, improving outcomes and opening new possibilities for innovation. However, these advances come with significant challenges, particularly in terms of governance and regulation. In regions like Southeast Asia and Latin America, the disparity in AI readiness between economies underscores the importance of regional cooperation.

At a recent AI dialogue hosted by APEC Peru 2024 and the Pacific Economic Cooperation Council, policymakers and experts from across the region underscored the need for cooperative governance. In parallel, the central role of evidence-based policymaking, facilitated by regional collaboration, is paramount to the process.

“It becomes an imperative to look for dynamic ways to build this evidence-based policy makings and that requires investment into capacity and regional cooperation,” stated Nicolas Miailhe of the Global Partnership on AI and the AI safety start up, PRISM Eval, pointing to the critical role governments play in ensuring robust AI governance. He stressed that the Asia-Pacific region, particularly in terms of its role in semiconductors and AI applications, must focus on creating collaborative frameworks to ensure safe and responsible AI development.

Peru's digital transformation journey offers a tangible example of how regional cooperation can accelerate AI governance. With support from Korea and other global AI leaders, Peru has been able to develop its AI strategies and build capacity in both the public and private sectors.

Leadership in AI governance has relied heavily on learning from other economies. “We've seen international collaboration, especially from APEC economies, in assisting with digital transformation projects,” explained Cesar Vilchez, Secretary of Peru’s Secretariat for Government and Digital Transformation.

This international collaboration has allowed Peru to integrate AI into key sectors like education, healthcare and business, ensuring a broad-based approach to digital transformation.

Addressing AI's ethical dilemmas together
One of the most pressing issues in AI governance is the ethical use of AI technologies. The benefits are vast, but without proper regulation, these technologies can perpetuate discrimination, invade privacy and exacerbate social inequalities.

Experts highlighted the dangers of AI when applied without consideration of its social impact. They emphasized the human cost of removing people from the decision-making process in vulnerable areas, stressing that governments need to consider the ethical implications of AI development carefully. They pointed out the critical need for shared ethical frameworks in AI governance and agreed that regulation must be people-centered, prioritizing transparency, fairness and inclusivity.

Elina Noor, a senior fellow in the Asia Program at the Carnegie Endowment for International Peace, brought attention to the vast disparities between economies in AI development and governance capacity.

“While discussions in Washington and Silicon Valley are about general artificial intelligence, the reality is that in many other economies, there is a fundamental shortage of capacity and resources," Noor explained.

She warned that applying a one-size-fits-all approach to AI governance could exacerbate inequalities and urged for a more contextualized understanding of AI governance, particularly in developing economies. “It’s important to critically unpack what concepts like trustworthiness, safety and security mean in different contexts,” she emphasized, highlighting the importance of tailoring AI policies to local realities.

“It would be useful to have a range of different stakeholders beyond the ‘usual suspects’ when discussing AI governance. This could include sociologists, linguists, even Indigenous voices,” Noor added. “Because AI is a socio-technical technology, it has to be grounded in the social realities and knowledge perspectives of the communities it is deployed to.”

Renato Reyes, Peru’s Senior Official for APEC, cited the Declaration of Cartagena—a landmark initiative focused on building inclusive, safe and efficient AI ecosystems through regional cooperation—as an example of international cooperation.

“International spaces of cooperation are no stranger to the discussion about AI,” said Reyes as he highlighted the importance of global collaboration to ensure ethical AI governance. “Different initiatives are being worked on to promote the responsible use of AI.”

Balancing innovation and regulation
The pressure between fostering innovation and ensuring responsible use of AI is a challenge that all regions face. While AI holds immense potential to boost productivity, particularly in developing economies, it also presents risks such as job displacement and the exacerbation of inequality. Experts highlighted that white-collar jobs are already being lost due to AI, and that this will have ripple effects across all sectors of the economy.

Balancing these risks and rewards requires a coordinated approach to regulation. In Latin America, over 400 AI-related bills have been proposed, reflecting the growing recognition of the need for governance frameworks that protect citizens while encouraging innovation.

Alex Pesso, legal and corporate affairs director at Microsoft Chile and Peru, emphasized the importance of regulatory frameworks that are flexible enough to adapt to the rapidly evolving AI landscape, while also ensuring that AI applications respect fundamental rights.

“Citizens, consumers, titleholders—you name it—should be able to control AI and their personal data involved in AI operations,” Pesso said. He advocated for a risk-based framework that focuses on high-risk uses and ensures safe, human-centric AI development.

Toward a cooperative future
Looking forward, regional cooperation will continue to be crucial in shaping the governance of AI. APEC, with its diverse membership, provides an ideal platform for economies to share best practices, collaborate on research, and develop common regulatory frameworks. Miailhe noted that the next phase of AI governance will require a blend of “soft” self-regulation and “hard” enforcement mechanisms, which can only be achieved through coordinated efforts across borders.

Peru’s leadership in integrating AI into its domestic strategy, supported by regional partners, illustrates the power of collaboration. By learning from more advanced economies and tailoring AI solutions to local needs, developing economies can harness AI’s potential to drive social and economic progress. At the same time, they can contribute valuable insights to global AI governance discussions, ensuring that the benefits of AI are distributed equitably across all economies.

As AI continues to evolve, the role of regional cooperation will only grow in importance. By working together, economies in the Asia-Pacific and beyond can ensure that AI remains a force for good—driving innovation, enhancing competitiveness, and fostering a more inclusive global economy.

“APEC can serve as a testing ground, an incubator of ideas, where we can explore and develop strategies that make technology work for all of us,” Ambassador Carlos Vasquez, the 2024 Chair of APEC Senior Officials’ Meeting, concluded.

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