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A report by MarketsandMarkets in 2024 showed that the global AI market size is estimated to grow from USD 214.6 billion in 2024 to USD 1,339.1 billion in 2030, at a CAGR of 35.7%. AI has become an enabler of productivity and innovation. A Forbes Advisor survey conducted in 2023 reported that 56% of businesses use AI to optimise their operations and drive efficiency. Further, 51% use AI for cybersecurity and fraud management, 47% employ AI-powered digital assistants to enhance productivity and 46% use AI to manage customer relationships.

AI has revolutionised business functions. According to a Forbes survey, 40% of businesses rely on AI for inventory management, 35% harness AI for content production and optimisation and 33% deploy AI-driven product recommendation systems for enhanced customer engagement.  This blog addresses the opportunities and challenges posed by integrating AI into operational efficiency.

Artificial Intelligence and its resultant Operational Efficiency

AI has exemplary optimisation or efficiency capabilities and is widely used to do repetitive tasks. These tasks include payroll processing, data entry, inventory management, patient registration, invoicing, claims processing, and others. AI use has been incorporated into such tasks as it can uncover complex patterns using NLP, machine learning, and deep learning beyond human capabilities. It has also shown promise in improving the decision-making process for businesses in time-critical, high-pressure situations. 

AI-driven efficiency is visible in industries such as the manufacturing industry for predictive maintenance, in the healthcare industry for streamlining diagnostics and in logistics for route optimisation. Some of the most common real-world examples of AI increasing operational efficiency are self-driving cars (Tesla), facial recognition (Apple Face ID), language translation (Google Translate), and medical diagnosis (IBM Watson Health)

Harnessing AI has advantages as it helps optimise the supply chain, extend product life cycles, and ultimately conserve resources and cut operational costs. 

Policy Implications for AI Deployment 

Some of the policy implications for development for AI deployment are as follows:

1. Develop clear and adaptable regulatory frameworks for the ongoing and future developments in AI. The frameworks need to ensure that innovation is not hindered while managing the potential risks. 
2. As AI systems rely on high-quality data that is accessible and interoperable to function effectively and without proper data governance, these systems may produce results that are biased, inaccurate and unreliable. Therefore, it is necessary to ensure data privacy as it is essential to maintain trust and prevent harm to individuals and organisations.
3. Policy developers need to focus on creating policies that upskill the workforce which complements AI development and therefore job displacement. 
4. To ensure cross-border applicability and efficiency of standardising AI policies, the policy-makers need to ensure that international cooperation is achieved when developing the policies.

Addressing Challenges and Risks 

Some of the main challenges that emerge with the development of AI are algorithmic bias, cybersecurity threats and the dependence on exclusive AI solutions or where the company retains exclusive control over the source codes. Some policy approaches that can be taken to mitigate these challenges are:

1. Having a robust accountability mechanism. 
2. Establishing identity and access management policies that have technical controls like authentication and authorisation mechanisms. 
3. Ensure that the learning data that AI systems use follows ethical considerations such as data privacy, fairness in decision-making, transparency, and the interpretability of AI models.

Conclusion 

AI can contribute and provide opportunities to drive operational efficiency in businesses. It can be an optimiser for productivity and costs and foster innovation for different industries. But this power of AI comes with its own considerations and therefore, it must be balanced with proactive policies that address the challenges that emerge such as the need for data governance, algorithmic bias and risks associated with cybersecurity. A solution to overcome these challenges is establishing an adaptable regulatory framework, fostering workforce upskilling and promoting international collaborations. As businesses integrate AI into core functions, it becomes necessary to leverage its potential while safeguarding fairness, transparency, and trust. AI is not just an efficiency tool, it has become a stimulant for organisations operating in a rapidly evolving digital world.

References

• https://indianexpress.com/article/technology/artificial-intelligence/ai-indian-businesses-long-term-gain-operational-efficiency-9717072/ 
• https://www.marketsandmarkets.com/Market-Reports/artificial-intelligence-market-74851580.html
• https://www.forbes.com/councils/forbestechcouncil/2024/08/06/smart-automation-ais-impact-on-operational-efficiency/ 
• https://www.processexcellencenetwork.com/ai/articles/ai-operational-excellence 
• https://www.leewayhertz.com/ai-for-operational-efficiency/ 
• https://www.forbes.com/councils/forbestechcouncil/2024/11/04/bringing-ai-to-the-enterprise-challenges-and-considerations/  

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Introduction

The land of the dragon has been significantly advanced in terms of innovation and creating self-sustaining technologies of civic and military importance. Leading nations of the West still need to understand the advancements the dragon land has made in technologies and what potential threats it poses on an international level.

Int on Dragon Land

According to a leaked US intelligence study, China is developing powerful cyber weapons to “seize control” of adversary satellites and render them worthless for data communications or surveillance during combat.

According to the US, China’s effort to build up the capacity to “deny, exploit, or hijack” hostile satellites is critical to controlling information, which Beijing views as a crucial “war-fighting domain.”^[1]

The CIA-marked document, one of hundreds purportedly given by a 21-year-old US Air Guardsman in the most influential American intelligence leaks in over a decade, was released this year and has yet to be disclosed before.

This kind of cyber capabilities would be significantly superior to what Russia has used in Ukraine, where electronic warfare troops have used a brute-force strategy to little avail.

How were the capabilities discovered?

According to a top-secret US dossier, China could use its cyber capabilities to “take control of a satellite, making it inoperable for support of communications, weapons, or intelligence, surveillance, and reconnaissance systems.” The US has never acknowledged having a comparable or superior capability.

By broadcasting related frequencies from truck-mounted jamming systems like the Tirada-2, these attacks were first developed in the 1980s to block communications between low-orbit SpaceX satellites and their on-ground terminals. China’s more ambitious cyberattacks are designed to imitate the signals that adversary satellites’ operators send out, tricking them into malfunctioning or being entirely taken over at critical points in a battle.

Implications of such military capabilities

The south Chinese island nation of Taiwan is attempting to develop a communications infrastructure that can withstand an attack from China after observing how crucial satellite communications have been to the Ukrainian military.

According to a January 2023 article in the Financial Times, it is seeking investors to launch its own satellite provider while testing with 700 non-geostationary satellite receivers around Taiwan to ensure bandwidth in the case of conflict or natural calamities. Similarly, a Russian cyber strike rendered thousands of Ukrainian military routers from US-based Viasat inoperable in the hours before it launched its invasion last year, demonstrating how important satellite communications have become in contemporary wartime. This attack was deemed to be catastrophic by the Ukraine officials as it broke down the communication between the Ukraine army and the govt.

Additionally, several hundred wind turbines in Germany, Poland, and Italy were impacted, which cut off service to thousands of Viasat users in those countries. Even though it was complex, the Viasat hack required accessing the business’ computer systems and then sending commands to the modems that made them break.

How significant is the threat?

According to the leaked assessment, China’s objectives are much more sophisticated and focused towards the future. According to analysts, they would aim to disable satellites’ ability to interact with one another, relay signals and orders to weapons systems, or give back visual and intercepted electronic data. Satellites often work in interconnected clusters and remain unmanned, thus preventing the scope of proper surveillance. Officials from the US military have warned that China has made substantial advancements in creating military space technologies, particularly satellite communications. Beijing is vigorously pursuing counter-space capabilities in an effort to realise its “space dream” of being the dominant force outside of the Earth’s atmosphere by 2045.

Threat to India?

As China aggressively invests in technology meant to disrupt, degrade, and destroy our space capabilities, a potential threat remains on the Indian satellites and spaceships. The complexity of the communication network and extended distance from the Earth can point towards a high number of vulnerabilities for the Indian Space program. Still, the Indian Space Research Organisation (ISRO) has been working tirelessly, and as of 1st January 2022, India has 21 operational satellites in Low Earth Orbit (LEO) and 28 operational satellites in Geostationary Orbit. In 2021, ISRO launched one PSLV-DL variant (PSLV-C51) mission and one GSLV-MkII variant (GSLV-F10) mission. GSLV-F10 could not accomplish the mission successfully. In 2021, India placed five satellites and 1 PSLV rocket body (PS4 stage) in Low Earth Orbits. India placed 65 rocket bodies in orbit from the first launch, of which 42 are still in orbit around the Earth, and 23 have re-entered and burnt up in the Earth’s atmosphere. The break-up event of the 4th stage of PSLV-C3 in 2001 generated 386 debris, of which 76 are still in orbit.

Conclusion

The space race is the new cold war, all nations are working towards securing their space assets while exploring new elements in outer space. It is pertinent that the national interest in space is protected, and a long awaiting space treaty for the modern age needs to be ratified by all nations with a presence in space. The future of space exploration is bright for most nations, but the threats should be eradicated, and an all-inclusive space should be promoted to maintain harmony in space.

^[1] https://www.ft.com/content/fc72d277-7fa8-4b29-9231-4feb34f43b0c

Introduction

There is a rising desire for artificial intelligence (AI) laws that limit threats to public safety and protect human rights while allowing for a flexible and inventive setting. Most AI policies prioritize the use of AI for the public good. The most compelling reason for AI innovation as a valid goal of public policy is its promise to enhance people's lives by assisting in the resolution of some of the world's most difficult difficulties and inefficiencies and to emerge as a transformational technology, similar to mobile computing. This blog explores the complex interplay between AI and internet governance from an Indian standpoint, examining the challenges, opportunities, and the necessity for a well-balanced approach.

Understanding Internet Governance

Before delving into an examination of their connection, let's establish a comprehensive grasp of Internet Governance. This entails the regulations, guidelines, and criteria that influence the global operation and management of the Internet. With the internet being a shared resource, governance becomes crucial to ensure its accessibility, security, and equitable distribution of benefits.

The Indian Digital Revolution

India has witnessed an unprecedented digital revolution, with a massive surge in internet users and a burgeoning tech ecosystem. The government's Digital India initiative has played a crucial role in fostering a technology-driven environment, making technology accessible to even the remotest corners of the country. As AI applications become increasingly integrated into various sectors, the need for a comprehensive framework to govern these technologies becomes apparent.

AI and Internet Governance Nexus

The intersection of AI and Internet governance raises several critical questions. How should data, the lifeblood of AI, be governed? What role does privacy play in the era of AI-driven applications? How can India strike a balance between fostering innovation and safeguarding against potential risks associated with AI?

• AI's Role in Internet Governance: 

Artificial Intelligence has emerged as a powerful force shaping the dynamics of the internet. From content moderation and cybersecurity to data analysis and personalized user experiences, AI plays a pivotal role in enhancing the efficiency and effectiveness of Internet governance mechanisms. Automated systems powered by AI algorithms are deployed to detect and respond to emerging threats, ensuring a safer online environment.

A comprehensive strategy for managing the interaction between AI and the internet is required to stimulate innovation while limiting hazards. Multistakeholder models including input from governments, industry, academia, and civil society are gaining appeal as viable tools for developing comprehensive and extensive governance frameworks.

The usefulness of multistakeholder governance stems from its adaptability and flexibility in requiring collaboration from players with a possible stake in an issue. Though flawed, this approach allows for flaws that may be remedied using knowledge-building pieces. As AI advances, this trait will become increasingly important in ensuring that all conceivable aspects are covered.

The Need for Adaptive Regulations

While AI's potential for good is essentially endless, so is its potential for damage - whether intentional or unintentional. The technology's highly disruptive nature needs a strong, human-led governance framework and rules that ensure it may be used in a positive and responsible manner. The fast emergence of GenAI, in particular, emphasizes the critical need for strong frameworks. Concerns about the usage of GenAI may enhance efforts to solve issues around digital governance and hasten the formation of risk management measures.

Several AI governance frameworks have been published throughout the world in recent years, with the goal of offering high-level guidelines for safe and trustworthy AI development. The OECD's "Principles on Artificial Intelligence" (OECD, 2019), the EU's "Ethics Guidelines for Trustworthy AI" (EU, 2019), and UNESCO's "Recommendations on the Ethics of Artificial Intelligence" (UNESCO, 2021) are among the multinational organizations that have released their own principles. However, the advancement of GenAI has resulted in additional recommendations, such as the OECD's newly released "G7 Hiroshima Process on Generative Artificial Intelligence" (OECD, 2023).

Several guidance documents and voluntary frameworks have emerged at the national level in recent years, including the "AI Risk Management Framework" from the United States National Institute of Standards and Technology (NIST), a voluntary guidance published in January 2023, and the White House's "Blueprint for an AI Bill of Rights," a set of high-level principles published in October 2022 (The White House, 2022). These voluntary policies and frameworks are frequently used as guidelines by regulators and policymakers all around the world. More than 60 nations in the Americas, Africa, Asia, and Europe had issued national AI strategies as of 2023 (Stanford University).

Conclusion

Monitoring AI will be one of the most daunting tasks confronting the international community in the next centuries. As vital as the need to govern AI is the need to regulate it appropriately. Current AI policy debates too often fall into a false dichotomy of progress versus doom (or geopolitical and economic benefits versus risk mitigation). Instead of thinking creatively, solutions all too often resemble paradigms for yesterday's problems. It is imperative that we foster a relationship that prioritizes innovation, ethical considerations, and inclusivity. Striking the right balance will empower us to harness the full potential of AI within the boundaries of responsible and transparent Internet Governance, ensuring a digital future that is secure, equitable, and beneficial for all.

References

1. The Key Policy Frameworks Governing AI in India - Access Partnership
2. AI in e-governance: A potential opportunity for India (indiaai.gov.in)
3. India and the Artificial Intelligence Revolution - Carnegie India - Carnegie Endowment for International Peace
4. Rise of AI in the Indian Economy (indiaai.gov.in)
5. The OECD Artificial Intelligence Policy Observatory - OECD.AI
6. Artificial Intelligence | UNESCO
7. Artificial intelligence | NIST