In the face of the ongoing discoveries of AI and its increasingly widespread economic effects, Canada is pushing for global action and consensus on AI rules, safety and equity.
At the same time, a clear AI gap between rich and developing countries is widening. Canadian Ambassador to the United Nations David Lametti put it succinctly to the Canadian press recently:
“The UN remains extremely important, (it) remains probably the only institution in the world that can convene that kind of discussion on a more or less equal basis between Meta, Amazon Web, Microsoft, Apple and Google – and all these other countries.”
of The World Economic Forum (WEF) has come to more or less the same view from another direction based on the impact of AI on global business and broader applications in commerce. Loans and finance are particularly sensitive and are already creating problems for developing countries. Exclusion from credit markets based solely on IA loan decisions creates capital problems that can hinder business growth and development.
WEF estimates that “The global trade finance gap lies in 2.5 trillion dollarsfocused almost entirely on emerging market corridors where transaction data is thinnest.”
This is where the issue of “equality” espoused by Canada becomes critical. Such a large shortfall in capital effectively shuts down trading almost entirely due to AI’s procedural behavior in managing finances.
A complicated reality for the developing world
of The UN’s own data supports this view with a few caveats. The many apparent opportunities for developing countries involve significant burdens on their capital and raise many questions about their capacity to develop.
According to the UNDP Regional Bureau for Asia and the Pacific (RBAP):
The infrastructure investment needed to advance artificial intelligence is already an order of magnitude larger than the current SDG funding gap. This is why the widespread adoption of AI should be treated as a central development objective.
The reality of adoption and application is much more demanding than for less developed countries. The UN is championing AI as a critical development asset, but 1.2 billion people are left behind.
Canada’s broad UN approach to these problems may be the only realistic way to make the issues visible or even actionable. The vast mix of problems simply does not have a coherent profile. The world’s priorities are elsewhere. Slow trickle of headlines on AI adoption in developing countries are a predictably chaotic and ineffective sprinkling of anecdotes compared to the high-profile Big Tech news that drowns out all other considerations.
A polarized trade environment and China’s artificial intelligence push towards emerging markets
The much bigger picture is a destructive form of technological polarization at the worst possible time. Geopolitics has created a number of minefields. Globalization is the world commercial reality and its scope is total in all economies.
Aside from Canada, the West is not offering much gratitude, much less leadership, to the rest of the world. China, however, was already promoting a “Digital Silk Road” at the beginning of this year. According to the East Asia Forum, “This ambitious undertaking aims to connect around 150 countries across Africa, Asia, Europe and beyond through a modern rail, road and port network.
The Chinese initiative is supported by DeepSeek and its integrated business support networks. China is deploying artificial intelligence and automation at breakneck speed.
The contrast between China and US AI could not be sharper and is a stark dichotomy:
US trade policies have effectively created a roadblock. These policies and the often negative reactions to them now define global trade in the short term.
China’s open-source AI approach is the exact opposite of the US’s dogmatic proprietary stance. Open source is by far the easiest option for introducing AI.
Large capital investment in AI is a physical impossibility for many nations. The US may have priced itself entirely out of some markets.
Adopting an entirely new class of technology and its support systems without basic guidance is equally impossible and unrealistic.
At the ground level, Chinese AI and automation are being deployed across industrial sectors, while US AI is much more high-level and exclusionary.
A version of the standardization of AI practices in the US or China is likely to be a major sticking point for the world as a whole. The two environments are not compatible.
Canada to the rescue? Maybe, and at least it’s a start.
In taking on the seemingly unforgiving task of addressing the realities of global AI adoption, Canada is lifting a very heavy load.
At the risk of euphemism, rules, fairness, and equality haven’t exactly been hot topics for Big Tech, Big Money, or anyone else. The US, in particular, has been actively trying to block AI regulation at the federal level.
For global AI to work at all, standards are essential. Consider the possibilities of AI generating trade disputes and exacerbating current situations. Equity and common practice are the basis of trade.
Failure to address these issues simply guarantees future problems, disputes and dysfunction on a global scale. The world should pay attention.
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Disclaimer
The opinions expressed in this Op-Ed are those of the author. They are not intended to reflect the opinions or views of Digital Newspaper or its members.
