EU goes forward with China investment deal despite Biden objections, Stanford blames botched vaccine rollout on a faulty algorithm, and AI takes to the skies with the USAF

Sign up
Worth Knowing

China and EU Strike Investment Deal: On December 30, Chinese and European Union leaders reached an agreement on a deal that would reduce investment barriers and give European companies more access to the Chinese market. Negotiations, which had been underway for nearly seven years, reportedly gained momentum when Germany, which has significant manufacturing interests in China, took over the rotating six-month presidency of the European Council last July. While the agreement will likely be a boon to European companies, a number of observers say the deal is a major strategic win for China. Representatives of the incoming Biden administration appeared to agree, publicly signaling their desire for the EU to delay the deal. Before the deal can take effect, it must be ratified by the European Parliament, where China’s human rights record could become a major barrier.
Stanford Medicine Blames Algorithm for Botched Vaccine Rollout: After its initial vaccine distribution plan excluded all but seven of its 1,300 medical residents, Stanford’s leaders blamed a flawed algorithm for the allotments and pledged to revise the rollout plan. What was described as a “very complex algorithm” by hospital leadership appears to have been a relatively simple rules-based formula that considered variables such as age, location and job-specific criteria. As vaccine distribution plans take shape nationwide, decision makers are turning to similar algorithms to help allocate scarce vaccine supplies. But experts note that even simple formulas like Stanford’s can produce bad results if the initial rules set by the algorithm’s designers are flawed. Observers worry these public failures and the lack of transparency that often accompanies decision-by-algorithm may undermine public trust and hinder the vaccine’s rollout.
Google Pushes Staff Researchers to Stay Positive on Sensitive Topics: According to a Reuters report, Google has launched “sensitive topics” reviews of internal research and, in at least three instances, has directed researchers to avoid critiquing Google technology. The internal documents reviewed by Reuters direct Google researchers to consult with legal, policy and public relations representatives before researching AI subjects such as face and sentiment analysis and demographic categorization. Several researchers said these policies interfere with their ability to conduct crucial research. Margaret Mitchell, a senior AI scientist, told Reuters that Google’s tightening restrictions were “getting into a serious problem of censorship.” The Reuters report comes on the heels of the public split between Google and its star AI ethics researcher Timnit Gebru, who says she was pushed out for criticizing Google management over its treatment of women and minority employees and its handling of a paper she had co-written.    
Government Updates

U.S. Air Force Uses AI Aboard Military Plane for the First Time: Last month, the Air Force announced it had deployed AI on a military jet as part of a training flight, a first for the U.S. military. While a human pilot flew the U-2 high altitude reconnaissance aircraft, the AI system, dubbed ARTUµ, acted as the plane’s radar operator, controlling the plane’s sensor employment and tactical navigation. The ARTUµ system is based on the publicly available µZero algorithm developed by Alphabet subsidiary DeepMind to play games like chess and Go. The test was part of the Pentagon’s efforts to enable human-machine teaming, in which autonomous systems control peripheral tasks while humans retain control of core decisions like flight control and targeting.

Commerce Adds Dozens of Chinese Organizations to Export Blacklist: Last month, the Commerce Department added dozens of Chinese companies — including Semiconductor Manufacturing International Corporation, China’s largest semiconductor manufacturer — and several Chinese universities to the Entity List, restricting their access to U.S. exports unless the exporter receives government approval. The Commerce Department said exports of semiconductor manufacturing equipment used to produce advanced chips — 10 nanometers and below — to SMIC would be especially restricted, subject to a “presumption of denial” standard. All other export licenses would be handled on a case-by-case basis. Experts quickly took issue with this aspect of the rules, however, noting that the 10 nanometer restriction is narrowly drafted and would rarely apply in practice.

AI Funding in the 2021 Consolidated Appropriations Act: On December 27, President Trump signed the Consolidated Appropriations Act, 2021, which Congress passed a week earlier. It includes $2.3 trillion in funding for government operations and COVID-19 relief efforts. AI-relevant provisions include:
  • An additional $5 million above the president’s request for JAIC operational systems development;
  • An additional $5 million above the president’s request for foundational AI research;
  • A requirement that JAIC inventory all AI programs at DOD; and
  • An additional $65.5 million for Army AI research and development.
The measure also included a final FY2021 Intelligence Authorization Act, which:
  • Authorizes the Director of National Intelligence to award up to $15 million in contracts or grants to support microelectronics research; and
  • Requires an assessment of critical trends in emerging technology, semiconductor supply chains, U.S. partner nation export controls and opportunities for greater export control collaboration in areas related to emerging technology.
Congress Overrides Presidential Veto to Pass NDAA: Congress voted last week to override President Trump’s veto of the National Defense Authorization Act for Fiscal Year 2021. As discussed in the last edition of policy.ai, the law includes a number of provisions related to AI and emerging technology, including:
  • The National AI Initiative Act, which directs the president to establish a National Artificial Intelligence Initiative to support U.S. leadership in AI. The measure authorizes approximately $5 billion for National Science Foundation AI research and education grants, as well as more than $1 billion for Department of Energy AI research.
  • Provisions from the CHIPS for America Act to support the development and production of semiconductors in the United States. The included provisions authorize financial incentives for the construction of semiconductor manufacturing facilities in the United States, direct DOD to establish a public-private consortium for the development of chips. They also authorize a fund to advance microelectronics research with allies and partners, provided those partners maintain export licensing policies on semiconductor technology exports to China equivalent to U.S. policies.
In Translation
CSET’s translations of significant foreign language documents on AI

PRC Press Conference: Transcript of the National Development and Reform Commission October Press Conference. A translation of a short excerpt from the transcript of the October 20, 2020 PRC National Development and Reform Commission press conference. In response to a question from a reporter about failed projects to upgrade China’s microchip industry, the NDRC spokeswoman acknowledges that in the rush to develop the industry, many local governments in China have funded poorly thought-out projects led by incompetent companies. The spokeswoman proposes four measures to mitigate this problem.

Private Sector and PRC Defense S&T: CSET has translated five Chinese regulations governing the participation of private companies and private investors in the PRC defense science and technology industry, traditionally the exclusive domain of state-owned conglomerates. The regulations were issued between 2007 and 2014.
What We’re Reading

Report: Getting the future right – Artificial intelligence and fundamental rights, European Union Agency For Fundamental Rights (December 2020)

Blog Post: HAI Recommended Reading: 10 Books Worth Checking Out, Stanford University Human-Centered Artificial Intelligence (December 2020)

Article: Data and its (dis)contents: A survey of dataset development and use in machine learning research, Amandalynne Paullada, Inioluwa Deborah Raji, Emily M. Bender, Emily Denton and Alex Hanna (December 2020)

What’s New at CSET

REPORTSJOB OPENINGS
CSET is hiring! Please share with qualified candidates in your network or consider applying.
  • Research Analyst, closes Friday (Jan 8): We’re looking for a Research Analyst to focus on biotechnology efforts. Collaborate with Research Fellows to develop and execute research projects. BA in relevant area and comfort with data analysis/viz required (MA preferred).
PUBLICATIONSFORECASTS
CSET has launched a crowd forecasting platform. Sign up as a forecaster, and take a look at some of the predictions so far:
IN THE NEWS
  • American Public Media: Anna Puglisi appeared on Marketplace to discuss the attempted theft of U.S. semiconductor secrets by China.
  • NPR: WBUR’s Here & Now brought on CSET’s Ben Buchanan to talk about the recent SolarWinds cyberattack against the U.S. government.
  • Associated Press: Ben Buchanan was also quoted by the AP in an article about the cyber operation.
  • South China Morning Post: Will Hunt spoke with the South China Morning Post about the Biden administration’s approach to semiconductor exports.
Upcoming Events


What else is going on? Suggest stories, documents to translate & upcoming events here.