Deepfake Alert: Sachin Tendulkar's Warning Against Technology Misuse

Introduction: 

The G7 Summit is an international forum that includes member states from France, the United States, the United Kingdom, Germany, Japan, Italy, Canada and the European Union (EU). The annual G7 meeting that is held every year was hosted by Japan this year in May 2023. It took place in Hiroshima. Artificial Intelligence (AI) was the major theme of this G7 summit. Key takeaways from this G7 summit highlight that leaders together focused on escalating the adoption of AI for beneficial use cases across the economy and the government and improving the governing structure to mitigate the potential risks of AI. 

Need for fair and responsible use of AI:

The G7 recognises that they really need to work together to ensure the responsible and fair use of AI to help establish technical standards for the same. Members of the G7 countries agreed to adopt an open and enabling environment for the development of AI technologies.  They also emphasized that AI regulations should be based on democratic values. G7 summit calls for the responsible use of AI. The ministers discussed the risks involved in AI technology programs like ChatGPT. They came up with an action plan for promoting responsible use of AI with human beings leading the efforts. 

Further Ministers from the Group of Seven (G7) countries (Canada, France, Germany, Italy, Japan, the UK, the US, and the EU) met virtually on 7 September 2023 and committed to creating ‘international guiding principles applicable for all AI actors’, and a code of conduct for organisations developing ‘advanced’ AI systems. 

What is HAP (Hiroshima AI Process)

Hiroshima AI Process (HAP) aims to establish trustworthy AI technical standards at the international level. The G7 agreed on creating a ministerial forum to prompt the fair use of AI. Hiroshima AI Process (HAP) is an effort by G7 to determine a way forward to regulate AI. The HAP establishes a forum for international discussions on inclusive AI governance and interoperability to achieve a common vision and goal of trustworthy AI at the global level.

The HAP will be operating in close connection with organisations including the Organisation for Economic Co-operation and Development (OECD) and the Global Partnership on AI (GPAI).

This Hiroshima AI Process (HAP) initiated at the Annual G7 Summit held in Hiroshima, Japan is a significant step towards regulating AI and the Hiroshima AI Process (HAP) is likely to conclude by December 2023.

G7 leaders emphasized fostering an environment where trustworthy AI systems are designed, developed and deployed for the common good worldwide. They advocated for international standards and interoperable tools for trustworthy AI that enable Innovation by creating a comprehensive policy framework, including overall guiding principles for all AI actors in the AI ecosystem.

Stressing upon fair use of advanced technologies:

The impact and misuse of generative AI was also discussed by the G7 leaders. The G7 members also stressed misinformation and disinformation in the realm of generative AI models. As they are capable of creating synthetic content such as deepfakes. In particular, they noted that the next generation of interactive generative media will leverage targeted influence content that is highly personalized, localized, and conversational. 

In the digital landscape, there is a rapid advancement of technologies such as generative 

Artificial Intelligence (AI), deepfake, machine learning, etc. Such technologies offer convenience to users in performing several tasks and are capable of assisting individuals and business entities. Since these technologies are easily accessible, cyber-criminals leverage AI tools and technologies for malicious activities, hence certain regulatory mechanisms at the global level will ensure and advocate for the ethical, reasonable and fair use of such advanced technologies. 

Conclusion: 

The G7 summit held in May 2023 focused on advanced international discussions on inclusive AI governance and interoperability to achieve a common vision and goal of trustworthy AI, in line with shared democratic values. AI governance has become a global issue, countries around the world are coming forward and advocating for the responsible and fair use of AI and influence on global AI governance and standards. It is significant to establish a regulatory framework that defines AI capabilities and identifies areas prone to misuse. And set forth reasonable technical standards while also fostering innovations. Hence overall prioritizing data privacy, integrity, and security in the evolving nature of advanced technologies. 

References:

• https://www.politico.eu/wp-content/uploads/2023/09/07/3e39b82d-464d-403a-b6cb-dc0e1bdec642-230906_Ministerial-clean-Draft-Hiroshima-Ministers-Statement68.pdf
• https://www.g7hiroshima.go.jp/en/summit/about/
• https://www.drishtiias.com/daily-updates/daily-news-analysis/the-hiroshima-ai-process-for-global-ai-governance
• https://www.businesstoday.in/technology/news/story/hiroshima-ai-process-g7-calls-for-adoption-of-international-technical-standards-for-ai-382121-2023-05-20

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Introduction

Pagers were commonly utilized in the late 1990s and early 2000s, especially in fields that needed fast, reliable communication and swift alerts and information sharing. Pagers typically offer a broader coverage range, particularly in remote areas with limited cellular signals, which enhances their dependability. They are simple electronic devices with minimal features, making them easy to use and less prone to technical issues. The decline in their use has been caused by the rise of mobile phones and their extensive features, offering more advanced communication options like voice calls, text messages, and internet access. Despite this, pagers are still used in some specific industries.

A shocking incident occurred on 17th September 2014, where thousands of pager devices exploded within seconds across Lebanon in a synchronized attack, targeting the US-designated terror group Hezbollah. The explosions killed at least 9 and injured over 2,800 individuals in the country that has been caught up in the Israel-Palestine tensions in its backyard.

The Pager Bombs Incident

On Tuesday, 17th September 2024, hundreds of pagers carried by Hezbollah members in Lebanon exploded in an unprecedented attack, surpassing a series of covert assassinations and cyber-attacks in the region over recent years. The Iran-backed militant group claimed the wireless devices began to explode around 3:30 p.m., local time, in a targeted attack on Hezbollah operatives. The pagers that exploded were new and had been purchased by Hezbollah in recent months. Experts say the explosions underscore Hezbollah's vulnerability as its communication network was compromised to deadly effect. Several areas of the country were affected, particularly Beirut's southern suburbs, a populous area that is a known Hezbollah stronghold. At least 9 people were killed, including a child, and about 2,800 people were wounded, overwhelming Lebanese hospitals.

Second Wave of Attack

As per the most recent reports, the next day, following the pager bombing incident, a second wave of blasts hit Beirut and multiple parts of Lebanon. Certain wireless devices such as walkie-talkies, solar equipment, and car batteries exploded, resulting in at least 9 people killed and 300 injured, according to the Lebanese Health Ministry. The attack is said to have embarrassed Hezbollah, incapacitated many of its members, and raised fears about a greater escalation of hostilities between the Iran-backed Lebanese armed group and Israel.

A New Kind of Threat - ‘Cyber-Physical’ Attacks

The incident raises serious concerns about physical tampering with daily-use electronic devices and the possibility of triggering a new age of warfare. This highlights the serious physical threat posed, wherein even devices such as smartwatches, earbuds, and pacemakers could be vulnerable to physical tampering if an attacker gains physical access to them. We are potentially looking at a new age of ‘cyber-physical’ threats where the boundaries between the digital and the physical are blurring rapidly. It raises questions about unauthorised access and manipulation targeting the physical security of such electronic devices. There is a cause for concern regarding the global supply chain across sectors, if even seemingly-innocuous devices can be weaponised to such devastating effect. Such kinds of attacks are capable of causing significant disruption and casualties, as demonstrated by pager bombings in Lebanon, which resulted in numerous deaths and injuries. It also raises questions on the regulatory mechanism and oversights checks at every stage of the  electronic device lifecycle, from component manufacturing to the final assembly and shipment or supply. This is a grave issue because embedding explosives and doing malicious modifications by adversaries can turn such electronic devices into weapons.

CyberPeace Outlook

The pager bombing attack demonstrates a new era of threats in warfare tactics, revealing the advanced coordination and technical capabilities of adversaries where they have weaponised the daily use of electronic devices. They have targeted the hardware security of electronic devices, presenting a serious new threat to hardware security. The threat is grave, and has understandably raised widespread apprehension globally.  Such kind of gross weaponisation of daily-use devices, specially in the conflict context, also triggers concerns about the violation of International Humanitarian Law principles. It also raises serious questions on the liabilities of companies, suppliers and manufacturers of such devices, who are subject to regulatory checks and ensuring the authenticity of their products.

The incident highlights the need for a more robust regulatory landscape, with stricter supply chain regulations as we adjust to the realities of a possible new era of weaponisation and conflict expression. CyberPeace recommends the incorporation of stringent tracking and vetting processes in product supply chains, along with the strengthening of international cooperation mechanisms to ensure compliance with protocols regarding the responsible use of technology. These will go a long way towards establishing peace in the global cyberspace and restore trust and safety with regards to everyday technologies.

References:

1. https://indianexpress.com/article/what-is/what-is-a-pager-9573113/

2. https://timesofindia.indiatimes.com/world/middle-east/pager-attack-in-lebanon-why-was-hezbollah-using-outdated-pagers-in-2024/articleshow/113442551.cms

3. https://www.ndtv.com/world-news/explained-how-pagers-turned-bombs-and-why-israel-is-being-blamed-6592100

4. https://edition.cnn.com/2024/09/17/middleeast/lebanon-pager-attack-explosions-hezbollah-explainer-intl-latam/index.html

5. https://www.theguardian.com/world/2024/sep/18/hezbollah-pager-explosion-lebanon-israel-gold-apollo

6. https://apnews.com/article/lebanon-israel-exploding-pagers-hezbollah-syria-ce6af3c2e6de0a0dddfae48634278288

7. https://21stcenturychronicle.com/smartphones-solar-panels-walkie-talkies-intercoms-car-betteries-explode-in-lebanon/

https://www.coastreporter.net/the-mix/lebanon-is-rocked-by-a-second-wave-of-exploding-devices-as-israel-declares-a-new-phase-of-war-9536618

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Introduction

According to Statista, the global artificial intelligence software market is forecast to grow by around 126 billion US dollars by 2025. This will include a 270% increase in enterprise adoption over the past four years. The top three verticals in the Al market are BFSI (Banking, Financial Services, and Insurance), Healthcare & Life Sciences, and Retail & e-commerce. These sectors benefit from vast data generation and the critical need for advanced analytics. Al is used for fraud detection, customer service, and risk management in BFSI; diagnostics and personalised treatment plans in healthcare; and retail marketing and inventory management.

The Chairperson of the Competition Commission of India’s Chief, Smt. Ravneet Kaur raised a concern that Artificial Intelligence has the potential to aid cartelisation by automating collusive behaviour through predictive algorithms. She explained that the mere use of algorithms cannot be anti-competitive but in case the algorithms are manipulated, then that is a valid concern about competition in markets.

This blog focuses on how policymakers can balance fostering innovation and ensuring fair competition in an AI-driven economy. 

What is the Risk Created by AI-driven Collusion?

AI uses predictive algorithms, and therefore, they could lead to aiding cartelisation by automating collusive behaviour. AI-driven collusion could be through:

• The use of predictive analytics to coordinate pricing strategies among competitors.
• The lack of human oversight in algorithm-induced decision-making leads to tacit collusion (competitors coordinate their actions without explicitly communicating or agreeing to do so).

AI has been raising antitrust concerns and the most recent example is the partnership between Microsoft and OpenAI, which has raised concerns among other national competition authorities regarding potential competition law issues. While it is expected that the partnership will potentially accelerate innovation, it also raises concerns about potential anticompetitive effects such as market foreclosure or the creation of barriers to entry for competitors and, therefore, has been under consideration in the German and UK courts. The problem here is in detecting and proving whether collusion is taking place. 

The Role of Policy and Regulation

The uncertainties induced by AI regarding its effects on competition create the need for algorithmic transparency and accountability in mitigating the risks of AI-driven collusion. It leads to the need to build and create regulatory frameworks that mandate the disclosure of algorithmic methodologies and establish a set of clear guidelines for the development of AI and its deployment. These frameworks or guidelines should encourage an environment of collaboration between competition watchdogs and AI experts. 

The global best practices and emerging trends in AI regulation already include respect for human rights, sustainability, transparency and strong risk management. The EU AI Act could serve as a model for other jurisdictions, as it outlines measures to ensure accountability and mitigate risks. The key goal is to tailor AI regulations to address perceived risks while incorporating core values such as privacy, non-discrimination, transparency, and security.

Promoting Innovation Without Stifling Competition

Policymakers need to ensure that they balance regulatory measures with innovation scope and that the two priorities do not hinder each other. 

1. Create adaptive and forward-thinking regulatory approaches to keep pace with technological advancements that take place at the pace of development and allow for quick adjustments in response to new AI capabilities and market behaviours.n
2. Competition watchdogs need to recruit domain experts to assess competition amid rapid changes in the technology landscape. Create a multi-stakeholder approach that involves regulators, industry leaders, technologists and academia who can create inclusive and ethical AI policies. 
3. Businesses can be provided incentives such as recognition through certifications, grants or benefits in acknowledgement of adopting ethical AI practices. 
4. Launch studies such as the CCI’s market study to study the impact of AI on competition. This can lead to the creation of a driving force for sustainable growth with technological advancements. 

Conclusion: AI and the Future of Competition

We must promote a multi-stakeholder approach that enhances regulatory oversight, and incentivising ethical AI practices. This is needed to strike a delicate balance that safeguards competition and drives sustainable growth. As AI continues to redefine industries, embracing collaborative, inclusive, and forward-thinking policies will be critical to building an equitable and innovative digital future. 

The lawmakers and policymakers engaged in the drafting of the frameworks need to ensure that they are adaptive to change and foster innovation. It is necessary to note that fair competition and innovation are not mutually exclusive goals, they are complementary to each other. Therefore, a regulatory framework that promotes transparency, accountability, and fairness in AI deployment must be established.

References

• https://www.thehindu.com/sci-tech/technology/ai-has-potential-to-aid-cartelisation-fair-competition-integral-for-sustainable-growth-cci-chief/article69041922.ece 
• https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html 
• https://www.ey.com/en_in/insights/ai/how-to-navigate-global-trends-in-artificial-intelligence-regulation#:~:text=Six%20regulatory%20trends%20in%20Artificial%20Intelligence&text=These%20include%20respect%20for%20human,based%20approach%20to%20AI%20regulation. ‍
• https://www.business-standard.com/industry/news/ai-has-potential-to-aid-fair-competition-for-sustainable-growth-cci-chief-124122900221_1.html