On June 26, 2024, the Institute for Policy Research and Advocacy (ELSAM) hosted a public forum titled “Preparing Responsible and Trustworthy AI Regulation for Indonesia.” During this event, ELSAM shared AI governance policy recommendations with the Ministry of Communication and Information Technology (Kemenkominfo), covering various aspects from definitions to penalties. These recommendations aim to shape a Ministerial Regulation (Permen) on AI, expected to be completed by the end of the year.
The Need for Comprehensive AI Regulation
The discussion emphasized the urgent need for comprehensive AI regulation in Indonesia. ELSAM Executive Director Wahyudi Djafar highlighted the importance of a clear AI definition that aligns with global standards. ELSAM also suggested establishing a regulatory sandbox to encourage AI innovation without stifling creativity. Key areas requiring further attention include data privacy, algorithmic bias, and ethical AI deployment.
Efforts in Other Developing Countries
In addition to Indonesia, Brazil is also working on comprehensive AI regulations. While no specific law has been enacted yet, significant progress is being made with Bill No. 2,338/2023, known as Brazil’s Proposed AI Regulation. This bill aims to create a regulatory framework that ensures AI is developed and used responsibly and safely.
Indonesia and Brazil are part of the Global South’s efforts to develop AI regulations, inspired by the European Union’s AI Act. These initiatives demonstrate a commitment to ensuring AI development benefits all society members equitably and inclusively.
Why Developing Countries Need Immediate AI Regulation
Ethics and Social Protection
Effective regulation can ensure AI technology is used ethically. Without proper oversight, AI can lead to various ethical and social issues, such as algorithmic bias, data privacy violations, and non-transparent automated decisions.
Ethical Concerns:
- Facial Recognition: AI used for facial recognition can misuse biometric data, threatening privacy and security.
- Algorithmic Bias: AI algorithms can reinforce societal biases, worsening discrimination against minority groups.
- Digital Divide: Advanced AI technology often benefits wealthier segments, leaving rural and poor communities behind.
Government Surveillance: In countries with weaker legal systems, AI technology can be misused for unjustified surveillance, leading to human rights violations. Regulations must establish clear boundaries on AI surveillance and ensure transparency and accountability.
Developing Local Technology Capacity
Regulations supporting local innovation are crucial. Encouraging domestic AI development helps build technological capacity, allowing countries to become competitive producers in the global market.
- Indonesia: The “National Artificial Intelligence Strategy 2020-2045” promotes digital sovereignty and local AI development.
- India: The National Strategy for Artificial Intelligence (NSAI) and the National Programme on AI focus on research, development, and adoption of AI across various sectors.
- Mexico: The National Artificial Intelligence Strategy and the Artificial Intelligence Lab aim to position the country as a regional leader in AI.
Attracting Responsible Foreign Investment
Clear and transparent regulations can attract responsible foreign investment, providing legal certainty and reducing business risks. Investors prefer countries with robust AI regulations as it shows a commitment to safe and ethical technology use.
- India: The National Strategy for Artificial Intelligence has attracted global companies to invest in its AI ecosystem.
- Brazil: Clear standards and support for public-private collaborations have created a conducive environment for innovation and investment.
Protecting Workers from Automation Impact
One of the biggest challenges for developing countries is the impact of automation on the workforce. AI has the potential to replace jobs currently performed by humans, leading to increased unemployment. AI regulations must include reskilling and upskilling programs to help workers adapt to technological changes.
- Reskilling and Upskilling: Companies using AI for automation should equip employees with relevant new skills.
- Public-Private Partnerships: Collaboration between the public and private sectors is essential to ensure workers can find new jobs in the digital economy.
- Social Safety Nets: Strengthening social safety nets to support workers who lose their jobs due to automation, including providing unemployment benefits and job placement services.
Embracing a Fair and Inclusive Future
Comprehensive AI regulations are essential for developing countries to ensure ethical technology use, support local capacity development, attract responsible foreign investment, and protect workers from automation impacts. Learning from public discussions in Indonesia and initiatives in countries like Brazil and India, developing countries can create AI regulations that support digital sovereignty and societal well-being. With the right regulations, AI can accelerate economic and social development, ensuring technological advancements bring fair and inclusive benefits to all society members.
