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Richard, thank you so much for being a
part of the podcast.

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Yeah, thank you very much, Kevin.

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It's a pleasure to be here.

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Tell me how you first got into the area
of, well, AI more generally initially, and

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then responsible AI.

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Well, AI more generally, I did my studies
and my PhD already in artificial

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intelligence in the eighties, in the
nineties.

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So that's a long time ago when nobody knew
what artificial intelligence was.

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And then of course, since 2016, when this
came back into society and later in

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business, that's what I focused on.

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So long history in artificial intelligence
and in the responsible use of AI, I came

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across when in 2000...

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17, I was working at a large insurance
company.

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And in my team, there was a small group
who looked at bias and explainability.

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And I thought, before that, I just had a
business look at it.

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Yeah.

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So how can you use this for businesses?

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But then I said, wow, this is actually
important.

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And if you if you take this into account,
and if this is going be applied

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everywhere.

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So when I moved back to Telefonica, I took
that on board and I brought it into the

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company and said, well, if we want to be
serious on AI, we should not only look at

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business opportunities, but we should also
look at responsibility.

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And that's how I came in the field.

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What was the response in the company?

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Because obviously there's some effort
that's required and there may be

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trade-offs in terms of designing
responsible systems, dealing with issues

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like fairness and bias.

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So what was the response you got?

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Well, the response was surprisingly
positive.

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Yeah.

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So for instance, when in 2000, we started
this, this effort in 2018 in the

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beginning.

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And basically because the company was very
vocal on big data and artificial

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intelligence and the opportunities.

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Uh, and at that time there were a lot of
those scandals about discrimination, the

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compass things, uh, this company's hiring
people and only hiring a male gender.

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So, um,

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I thought, well, it's important to make a
statement as well.

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So we brought together a very, uh, a set
of departments, yeah.

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Which you have to put together because
this what about, it was an aspirational

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statement that we wanted to make.

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So we wanted to publish our ethical AI
principles.

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Uh, and it took us a month of four months
or five months to agree on the set of

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principles and then how do you formulate
them?

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Because of course, many

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commercial people think, well, if we do
this, then we will lose speed, we will

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lose revenues, but it was surprisingly
fast.

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So I think we published them in October
2018.

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And a very important lesson, because I've
also spoken to many other companies, and

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there are two approaches to...

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make these statements, publish your
ethical principles.

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The one is, is a kind of aspirational one.

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So this is what we want to do.

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And we acknowledge that we're not yet
there, but we're gonna work hard to be

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there.

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And then there are companies that before
publishing anything, they want to be

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absolutely sure that they are already
complying with what they're saying.

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Those companies, they are still discussing
their ethical principles, because

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obviously it's not so...

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easy to make sure that you comply with all
of them in all aspects.

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So we are on a journey as a sector,
private sector, public sector, as a

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society, and this is going to be
incorporated increasingly more, but

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gradually.

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Absolutely.

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Well, this is an important point, though.

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How does an organization ensure if they
actually get principles out the door, that

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they are more than just aspirational, that
they can actually influence the

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development that goes on?

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Yeah, so now you are alluding to ethics
washing.

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And so any company, any organization that
starts on this journey will first start

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with principles and there is really
nothing behind it.

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So you can, you can accuse them as being
ethics washing.

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But in the end, this is the way how you
start.

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And then the next year they have to, you
have to do something more.

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And the next year you have to do something
more.

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So.

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It's a journey.

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So we started in, let's say 2018, we
published into end of 2018.

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And we only approved a formal internal
regulation last December.

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So it took us like, uh, like, like five
years to do that.

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And that's not because, uh, we had to
convince everybody because there is no

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experience whatsoever in the world, how to
do that.

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So you have to find it out.

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yourself and then talk to some other
companies who do the same, but there are

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very few, especially in the beginning.

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So what we did is actually the first step
was we did a training course where we

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explain our employees and most people most
affected.

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So we're not speaking about only
developing artificial intelligence, but

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also about procuring it on the market and
also about using it internally and also

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about selling it.

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So all those people.

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And that's a big, that's a, that are
thousands of people in our company.

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And they need to understand something
about this.

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Yeah.

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So that's what we started with.

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Then next step we started about a kind of
thinking about the governance.

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So these are the principles, but so who is
responsible for it?

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What are the functions?

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Do we need a new role in the organization
to be able to deal with this?

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We, of course, like everybody, we started
to make a questionnaire where we do this

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ethics impact assessment.

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And I think we went through like 15
different versions based on experiences

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with people.

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Then we, we brought it out in the wild and
we tested it with real, uh, real use cases

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and people who are not so involved.

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And then finally we decided to run some
pilots with a governance model.

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So do we need an AI ethics committee or do
we need.

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a special role, like we call it the
responsible AI champion.

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And how do you organize this completely
distributed, decentralized?

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And what are the things?

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How, what is the workflow?

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How is compliance involved?

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How is ESG involved?

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So we did really a pilot, uh, in four
different business units.

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And based on that experience, we, we
thought we were ready to write really

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something up that can be then, uh,
complied with, and that is what is

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currently the case.

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So it's a journey that took us many years.

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Of course, today, if you start a journey,
there is much more experience.

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So it will take you maybe three years.

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And anyway, if you're in Europe, you have
to do something anyway, because of the

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upcoming AI Act, which will be, which will
enter in force in, in two years from now.

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So in that journey, how do you evaluate
what's success?

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You talked about a number of choices, a
number of options.

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How does the organization decide what the
right things are to implement?

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Well, I think success is that you move
forward in a possible way.

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And most of my experience is sometimes the
process is more important than the result.

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So of course, the result is that all the
systems that you launch and actually, so

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we have more than 500 systems every day
running in our in our corporation

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globally.

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So it's not like 10 systems or 15 or 40.

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It's really a huge amount of systems.

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So you really have to do something
seriously in order to understand that.

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Of course, what we now have to do, we
start with the new systems, where by

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design we take this into account, but then
slowly we have to do retrospective work on

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looking at all the systems that we have.

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But if you have a question like, for
example, do we have a centralized AI

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review board for ethics issues versus do
we decentralize it out?

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How do you get to answer some of those
questions at an organization?

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Yeah, that's a good point.

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It depends of course, whether I think one
of the first things that is important is,

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are you a provider of artificial
intelligence, mainly, or are you a user of

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artificial intelligence?

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A company like Telefonica or energy
companies or financial companies, they are

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all users, pharmaceuticals, and companies
like Microsoft or Google, et cetera, they

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are providers.

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of this technology.

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So I think that makes a very different
thing.

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If you are a provider, and you're a big
tech serving thousands or millions of

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customers across the globe, I think you
have to be very centralized.

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You can't leave this locally because then
many things will happen.

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If you are a user of this technology, it
depends a bit on how

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unified you are as a corporation.

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I mean, if you have acquired, if you exist
because of an emerging acquisition of 30

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different companies, it's not so easy to
do centralized.

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But if you are a centralized company to
some extent, then it's always good to have

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a mixed approach.

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Yeah.

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So for instance, we have a, let's say at
the corporation at headquarters where we

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run several of our global businesses and
our support functions.

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We have a central model where we have an
AI ethics committee, and we have certain

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persons in the central business units,
because there are also central business

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units.

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There is, of course, finance, there is HR,
but there is also digital transformation,

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let's say all our networks from a global
perspective.

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We have all that centralized.

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And then, of course, we have operations in
15 companies across the world.

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And then what we tell them.

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is here you have a role model which you
can use.

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And if you want to use it, we can help
you.

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But given your situation locally, you are
free to set up an alternative way of doing

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this as long as this is approved globally.

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So it's a kind of you cannot impose
everything from the top because it's not

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one size fits all.

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But there are certain principles that you
have to follow.

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that you have a figure called, actually a
role, it's a function of another job

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called responsible AI champion.

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That is in every business unit that uses,
develops, buys, or sells artificial

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intelligence needs to have such a
function.

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And this person is the go-to person for AI
ethical responsibility questions across

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that unit.

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Now, if you don't use any AI in a certain
area, of course you don't need such a

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person.

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If you use a lot, maybe you need three and
it's not even full-time.

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So it's just assignment of a new real
refunction to an existing job position.

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And so that is completely distributed
because it sits in the businesses.

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And then of course you need some...

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obstruct you to organize, to bring those
people together, to train them.

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You need an AI ethics committee.

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And then of course you can have the same,
you can have for each big area of

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business, you can have a separate AI
ethics committee, or you can have one

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centralized for the company.

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What is the best situation?

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So actually there are two factors.

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One is, do you have enough experts to make
such statements?

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Because it's not an easy.

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Of course, it sounds like anybody has an
opinion about ethics and about AI, but

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that's not what you want.

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You want people with a mix of profiles, of
backgrounds, but you also want to have

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some expertise in the area.

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So you don't have always the luxury to
have like five committees in the different

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business because simply it's not yet there
over time.

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Yeah.

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There will be much more experts, but today
that's a difficult question.

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And, and the other part is.

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whether how much AI there is.

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Yeah.

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So if there is a hundred systems, maybe
with one committee, because it's

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sufficient, because it's not a, so you
have also two ways of using an AI, AI

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ethics committee.

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One is permission-based and the other is
problem-based.

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So permission-based means anything that
will be done by the company first goes to

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the committee.

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There is a discussion, yes, we can do
that.

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No, we cannot do it or whatever.

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And that's permission based.

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And problem based is, look, we're working
with this AI product.

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We are discussing about the impact, and we
see there are some doubts.

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Should we use gender as a variable in the
model?

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Yes or no?

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Now, that's a problem.

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And then you bring it to the AI ethics
committee, and they discuss.

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Only about ethics, never about business.

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And then they highlight, and they give
recommendations.

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And then they go back to the team.

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Now, if the team agrees, then they

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they go forward, if they don't agree, is
escalated to an ad hoc committee where you

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bring together ethics and business.

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And in the end, the company takes a
decision.

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The important thing is an informed
decision, it's an explicit decision, and

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it's a documented decision.

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So that's the difference by just doing
things.

234
00:14:05,341 --> 00:14:11,826
So that works quite well from the ethics
perspective.

235
00:14:11,826 --> 00:14:14,607
Now, if you are a technology provider,

236
00:14:15,468 --> 00:14:20,270
where you have billions of customers,
maybe is more a permission-based.

237
00:14:20,370 --> 00:14:27,013
So we want to build an AI system that
analyzes all electronic communications in

238
00:14:27,013 --> 00:14:28,213
enterprises.

239
00:14:28,614 --> 00:14:36,757
And then we can find hubs of knowledge and
isolated hubs of departments that are not

240
00:14:36,757 --> 00:14:37,858
in contact.

241
00:14:38,718 --> 00:14:42,059
So that is a product that has, well.

242
00:14:42,060 --> 00:14:47,942
potentially serious implications for
workers and some ethical questions.

243
00:14:47,942 --> 00:14:52,484
So then it's good actually, so if you
provide this product to billions of

244
00:14:52,484 --> 00:14:55,906
people, then it's good to have a
permission base because the impact is

245
00:14:55,906 --> 00:14:56,046
huge.

246
00:14:56,046 --> 00:15:01,988
So it's again, it's not the same if you're
mostly a user of this technology where

247
00:15:01,988 --> 00:15:04,509
you're a big tech provider.

248
00:15:04,630 --> 00:15:08,671
Startups is a different world because they
are smaller.

249
00:15:09,756 --> 00:15:15,893
And they, of course, they have so many
resources, but still, if it's high risk,

250
00:15:15,893 --> 00:15:18,479
it's important to think those things in
advance.

251
00:15:19,370 --> 00:15:23,095
Does the fact that telephonica is in
telecommunications, which is a regulated

252
00:15:23,095 --> 00:15:27,381
industry, make it easier to adopt these
kinds of practices?

253
00:15:31,592 --> 00:15:36,373
Well, of course, but there are many
regulated industries, yeah, and

254
00:15:36,373 --> 00:15:39,514
telecommunications is regulated, but
finance and insurance is even more

255
00:15:39,514 --> 00:15:42,955
regulated and healthcare is enormously
regulated.

256
00:15:42,955 --> 00:15:52,718
So, of course, the culture of compliance,
yeah, of having to having processes and

257
00:15:52,718 --> 00:15:57,139
systems in place that check things, that
is...

258
00:15:57,140 --> 00:15:58,060
already in place.

259
00:15:58,060 --> 00:16:00,282
So you can a lot of piggyback on that.

260
00:16:00,402 --> 00:16:04,146
If you are a company that is not affected
by any regulation, of course, then it

261
00:16:04,146 --> 00:16:08,289
probably is harder to start with.

262
00:16:08,389 --> 00:16:12,493
But take into account that we started from
the business.

263
00:16:13,194 --> 00:16:20,460
We didn't start from compliance because at
that moment, this was not on the radar of

264
00:16:20,460 --> 00:16:21,540
compliance.

265
00:16:21,561 --> 00:16:24,883
Today, companies who are aware of upcoming
regulation

266
00:16:25,007 --> 00:16:27,587
Of course, they will start from
compliance.

267
00:16:29,398 --> 00:16:34,596
How does generative AI change the
landscape for responsible AI practices in

268
00:16:34,596 --> 00:16:35,317
your view?

269
00:16:38,901 --> 00:16:42,983
Technically speaking, not too much.

270
00:16:43,564 --> 00:16:52,310
I mean, ethical AI, responsible use of AI
is about estimating the ethical and social

271
00:16:52,310 --> 00:16:55,292
impact on human rights by design.

272
00:16:55,292 --> 00:17:02,678
I don't know if that is machine learning
with structured data or whether that is

273
00:17:02,678 --> 00:17:05,659
generative AI with unstructured data.

274
00:17:06,184 --> 00:17:13,909
You still have to evaluate the impact on
human rights.

275
00:17:13,909 --> 00:17:18,833
Now the difference is that, let's say
traditional AI is narrow AI.

276
00:17:18,833 --> 00:17:19,053
Yeah.

277
00:17:19,053 --> 00:17:22,355
So you have a use case and you evaluate
the use case.

278
00:17:22,495 --> 00:17:25,657
Now, generative AI is kind of general
purpose to some extent.

279
00:17:25,657 --> 00:17:25,878
Yeah.

280
00:17:25,878 --> 00:17:27,419
You can use it for different tasks.

281
00:17:27,419 --> 00:17:32,522
You can use it for very innocent tasks and
also for very serious tasks.

282
00:17:33,303 --> 00:17:34,643
And that means that.

283
00:17:36,100 --> 00:17:42,504
Um, it is different because for narrow AI,
it makes sense to evaluate use cases and

284
00:17:42,504 --> 00:17:43,385
not the technology.

285
00:17:43,385 --> 00:17:49,429
You don't, uh, you don't evaluate a
recommendation algorithm or a random

286
00:17:49,429 --> 00:17:52,651
forest algorithm in terms of ethical
impact.

287
00:17:52,651 --> 00:17:57,815
Once you apply it to a situation, then
you, uh, evaluate the impact.

288
00:17:58,796 --> 00:18:04,339
And with, with generator to vie is this,
this border is not so clear cut.

289
00:18:04,844 --> 00:18:08,706
Because I can bring to the market, and
this is what the companies do, they have

290
00:18:08,706 --> 00:18:14,590
the big tech do, a general purpose AI that
I can use as a user or as a business for

291
00:18:14,590 --> 00:18:15,970
many different things.

292
00:18:16,051 --> 00:18:23,535
I can use it for generating marketing
texts, which is probably not so impactful.

293
00:18:23,535 --> 00:18:30,759
But I can also use it to analyze natural
language of patient dossiers.

294
00:18:31,148 --> 00:18:35,049
and then make a decision for certain
patients in terms of healthcare decisions,

295
00:18:35,049 --> 00:18:37,509
which is very high impact.

296
00:18:37,730 --> 00:18:46,352
I can record interviews for HR
automatically and then have them analyzed

297
00:18:46,512 --> 00:18:52,013
by Generative AI to see whether I should
hire the people that has a lot of impact.

298
00:18:52,154 --> 00:18:58,655
So it's difficult to put an ethical impact
assessment on chat GPT.

299
00:18:59,208 --> 00:19:00,468
as such.

300
00:19:00,468 --> 00:19:02,570
So you have to do it.

301
00:19:02,570 --> 00:19:08,614
And as a user, that doesn't change because
we never use chat GPT or generative dive

302
00:19:08,614 --> 00:19:10,155
for whatever.

303
00:19:10,155 --> 00:19:16,039
So we use it to improve this or in our
legal area or in our whatever area.

304
00:19:16,039 --> 00:19:21,503
So we analyze the use case of this
technology.

305
00:19:21,503 --> 00:19:22,744
But if you are a provider,

306
00:19:22,744 --> 00:19:23,844
then it makes a difference.

307
00:19:23,844 --> 00:19:29,889
And that's also where the AI Act has found
a lot of difficulties in coming to

308
00:19:29,889 --> 00:19:31,089
agreement.

309
00:19:31,390 --> 00:19:39,135
And because if you want to regulate it as
one system, let's say as a high risk,

310
00:19:39,135 --> 00:19:44,399
impactful system, then you also regulate a
lot of innocent use cases and the other

311
00:19:44,399 --> 00:19:45,279
way around.

312
00:19:46,666 --> 00:19:47,126
Absolutely.

313
00:19:47,126 --> 00:19:50,631
But let's say you're in a company like
Telefonica that's not the one developing

314
00:19:50,631 --> 00:19:54,014
the large language models, but which has a
lot of these use cases.

315
00:19:54,215 --> 00:19:59,942
And so a product group says we want to use
a chat bot for customer service,

316
00:20:00,743 --> 00:20:02,045
generative AI.

317
00:20:02,045 --> 00:20:06,029
How do you think about the addressing
those kinds of ethical issues?

318
00:20:08,780 --> 00:20:12,000
Well, there is beyond the ethical
question.

319
00:20:12,000 --> 00:20:14,561
There is also just a performance question.

320
00:20:14,741 --> 00:20:23,724
So if I use a chat bot externally with
customers and I based that large part on

321
00:20:23,724 --> 00:20:29,625
existing systems like Lama2 or like, like
chat GPT, then I have a significant

322
00:20:29,625 --> 00:20:35,947
business risk, not even speaking about
ethical because those things can answer

323
00:20:35,947 --> 00:20:36,967
you whatever.

324
00:20:37,280 --> 00:20:39,660
whatever they can go into a direction.

325
00:20:40,520 --> 00:20:47,722
So what companies have to do is kind of
how do you tame or limit what those

326
00:20:47,722 --> 00:20:50,283
systems can say if they are talked to with
your customers.

327
00:20:50,283 --> 00:20:53,704
And that's even only from a business
perspective.

328
00:20:53,704 --> 00:20:54,344
Yeah.

329
00:20:54,424 --> 00:20:57,685
You don't want, so if we have a chat bot
where we can, we can talk with our

330
00:20:57,685 --> 00:21:02,186
customers, you want them to ask questions
about the, about the elections in the U S

331
00:21:02,346 --> 00:21:06,440
and that we make a statement that George
chat bot makes a statement about.

332
00:21:06,440 --> 00:21:07,820
candidate or so.

333
00:21:08,000 --> 00:21:11,182
Now, how do you limit that?

334
00:21:12,443 --> 00:21:16,945
Of course, if you manage to do that, then
there are technologies for that, rack

335
00:21:16,945 --> 00:21:23,869
technologies, whatever, where you take
your own content, and then you use that to

336
00:21:23,869 --> 00:21:28,131
generate the information, and then you use
ChetGBT to have the dialogue and the

337
00:21:28,131 --> 00:21:31,853
conversation to put everything together in
a natural way.

338
00:21:31,893 --> 00:21:36,075
That reduces significantly the
hallucination part.

339
00:21:36,760 --> 00:21:38,840
But still it can still have a lot of bias.

340
00:21:38,840 --> 00:21:46,082
Yeah, so like bias professional bias in
terms of professions typical male or

341
00:21:46,222 --> 00:21:53,004
Female process professions or it can even
have Yeah, let's say use language that we

342
00:21:53,004 --> 00:21:59,126
don't want them to use insinuating Things
that are not inclusive.

343
00:21:59,146 --> 00:22:02,747
So there's still quite some challenges
from an ethical perspective.

344
00:22:02,747 --> 00:22:04,627
But then what you have to do is

345
00:22:04,644 --> 00:22:10,285
This is my knowing what is your target
audience and then say, okay, suppose that

346
00:22:10,285 --> 00:22:12,066
something is going wrong in this
direction.

347
00:22:12,066 --> 00:22:16,187
So what is the impact on the people it's
working with?

348
00:22:16,207 --> 00:22:19,988
Is that impact severe or light?

349
00:22:21,108 --> 00:22:23,309
What's the probability that it happens?

350
00:22:23,309 --> 00:22:26,330
Is it 0.1% or is it 20%?

351
00:22:26,330 --> 00:22:29,391
And then how many people are involved?

352
00:22:29,391 --> 00:22:32,784
Is it 10, 100, a million, a full nation?

353
00:22:32,784 --> 00:22:36,967
So all those things matter in estimating
what is the impact.

354
00:22:36,967 --> 00:22:42,492
And if you do that by design and in a
systematic way, then the risk that

355
00:22:42,492 --> 00:22:46,395
something comes out that you don't want is
much less.

356
00:22:46,395 --> 00:22:48,737
Of course, you can never avoid it, yeah?

357
00:22:48,737 --> 00:22:50,898
Because some things you never know in
advance.

358
00:22:51,139 --> 00:22:55,763
But still, I mean, it's much better to do
it in such a way than just do it as quick

359
00:22:55,763 --> 00:23:02,107
as possible, put it in the market and then
discover, oops, we didn't know this.

360
00:23:03,234 --> 00:23:11,549
What about cultural context, language, how
specific do these kinds of mechanisms have

361
00:23:11,549 --> 00:23:12,249
to be?

362
00:23:14,500 --> 00:23:20,225
Well, it is true that because those
machines, this is massive brute force

363
00:23:20,225 --> 00:23:22,806
calculations with statistical models.

364
00:23:23,708 --> 00:23:28,171
Of course, the dominant culture on the
internet is English and US.

365
00:23:30,013 --> 00:23:35,398
So of course, many things that it answers,
even though in a different language, still

366
00:23:35,398 --> 00:23:41,343
the culture that is encoded implicitly in
the model is a specific culture.

367
00:23:42,116 --> 00:23:48,040
And that has as a disadvantage that
smaller cultures can be, yeah, let's see,

368
00:23:48,181 --> 00:23:49,842
have no, no role.

369
00:23:49,842 --> 00:23:51,443
Uh, not so much.

370
00:23:51,443 --> 00:23:55,787
Of course, in the Spanish speaking world,
there are still a 600 million Spanish

371
00:23:55,787 --> 00:23:57,008
speaking people in the world.

372
00:23:57,008 --> 00:23:59,430
So still a very large language.

373
00:23:59,430 --> 00:23:59,810
Yeah.

374
00:23:59,810 --> 00:24:03,974
Not as, of course, by far, not as big as
English, but definitely bigger than the

375
00:24:03,974 --> 00:24:05,955
Dutch and from the Netherlands.

376
00:24:05,975 --> 00:24:09,318
So only 20 million people in the world who
speak that.

377
00:24:09,318 --> 00:24:11,096
So, um,

378
00:24:11,096 --> 00:24:17,638
From a language perspective, in terms of
words, that can be worked on, because

379
00:24:17,778 --> 00:24:23,320
there are initiatives, local initiatives,
where people who love their language

380
00:24:23,321 --> 00:24:25,902
always put focus on that.

381
00:24:25,902 --> 00:24:28,383
So I'm not so worried about that.

382
00:24:28,383 --> 00:24:35,165
But the cultural aspect is something that
has to be taken into account.

383
00:24:35,506 --> 00:24:40,267
As far as I know, that is not a solved
problem, but it's a research problem.

384
00:24:42,702 --> 00:24:47,988
So you mentioned a couple of times the AI
Act that was recently adopted in Europe.

385
00:24:47,988 --> 00:24:54,496
How do you see that or the broader move
globally to adopt AI regulations impacting

386
00:24:54,496 --> 00:24:55,977
what companies are doing?

387
00:25:00,024 --> 00:25:02,366
I think it's a very good step, first step.

388
00:25:02,366 --> 00:25:06,648
It's a good step in the right, an
important direction.

389
00:25:08,570 --> 00:25:13,193
I think global regulation or global
agreements are very important.

390
00:25:13,373 --> 00:25:19,477
That's why the EU act is important,
because it covers 27 countries.

391
00:25:19,477 --> 00:25:21,498
It's not for one country only.

392
00:25:21,638 --> 00:25:23,579
Of course, the world is much larger.

393
00:25:24,016 --> 00:25:29,239
than 27 companies and there of course
there is the US and there is the UK, there

394
00:25:29,239 --> 00:25:31,461
is China, Russia.

395
00:25:32,281 --> 00:25:38,506
In that perspective I'm a fan of the
UNESCO Ethical AI recommendation because

396
00:25:38,506 --> 00:25:49,453
it covers 193 plus one countries including
the US, China, Saudi Arabia, Iran, so

397
00:25:49,954 --> 00:25:52,475
countries that are very hard to get
together.

398
00:25:53,396 --> 00:25:58,457
and they are together and they have signed
up to an ethical use of artificial

399
00:25:58,457 --> 00:25:59,517
intelligence.

400
00:25:59,558 --> 00:26:02,278
Of course, this is just a sign up, yeah,
there's no sanction.

401
00:26:02,278 --> 00:26:07,620
If you still do many different things,
nothing happens and that's the situation

402
00:26:07,620 --> 00:26:08,140
today.

403
00:26:08,140 --> 00:26:11,221
But that situation is also happening with
human rights.

404
00:26:11,541 --> 00:26:16,523
There are countries who signed an
international human rights declaration and

405
00:26:16,523 --> 00:26:19,023
are not respecting human rights as they
should.

406
00:26:19,023 --> 00:26:19,623
So...

407
00:26:20,044 --> 00:26:24,325
This is a necessary step towards a more
formal regulation.

408
00:26:25,845 --> 00:26:29,726
So I think the AI Act is a good thing.

409
00:26:30,106 --> 00:26:36,508
But of course, it also can be improved to
some extent and is still on paper.

410
00:26:36,568 --> 00:26:41,449
There's very little experience with what
it means in practice.

411
00:26:41,530 --> 00:26:47,431
I think a very important thing is this is
risk-based and that the majority of the

412
00:26:47,431 --> 00:26:48,891
use cases of AI...

413
00:26:49,108 --> 00:26:50,488
are not high risk.

414
00:26:50,608 --> 00:26:53,589
They're limited list, so they have no
regulation at all.

415
00:26:53,589 --> 00:27:00,012
But there are certain areas where there is
potential risk and those areas are

416
00:27:00,012 --> 00:27:01,032
regulated.

417
00:27:01,753 --> 00:27:07,475
So from very light regulation in terms of
if you make a deep fake, you have to say

418
00:27:07,475 --> 00:27:09,996
it's a deep fake.

419
00:27:10,036 --> 00:27:12,677
You can't claim that it is for real.

420
00:27:13,698 --> 00:27:15,939
There's transparency obligation.

421
00:27:15,939 --> 00:27:18,159
If it's high risk in terms of

422
00:27:19,380 --> 00:27:20,441
impacting human rights.

423
00:27:20,441 --> 00:27:26,286
So if I want to use AI to hire people or
to fire people, or to accept students, or

424
00:27:26,286 --> 00:27:31,630
to give a loan, determine the interest
rate, or whether I accept people for a

425
00:27:31,630 --> 00:27:36,414
loan, a mortgage, medical applications.

426
00:27:37,115 --> 00:27:39,717
So everything that is essential for
people.

427
00:27:39,897 --> 00:27:46,042
If you use AI for those specific things,
then you need to comply with certain

428
00:27:46,943 --> 00:27:47,983
requirements.

429
00:27:48,744 --> 00:27:51,286
before putting it in the market.

430
00:27:51,286 --> 00:27:56,230
So the data should not have bias, should
have quality, should have human oversight,

431
00:27:57,432 --> 00:27:59,313
the adequate human oversight.

432
00:28:01,655 --> 00:28:06,519
You should log the system in the sense
that if something happens later, you can

433
00:28:06,519 --> 00:28:08,681
investigate whether there was a problem.

434
00:28:08,681 --> 00:28:14,166
So it's a set of requirements that you
have to take into account, but only for

435
00:28:14,166 --> 00:28:16,347
high risk use cases.

436
00:28:16,768 --> 00:28:22,049
And then there is unacceptable risk and
those things are outright forbidden to do.

437
00:28:22,049 --> 00:28:27,571
If you do that, you have to pay 35 million
or 17% of your global annual review.

438
00:28:27,571 --> 00:28:31,832
So, so, and then there is the part of
general purpose AI.

439
00:28:31,832 --> 00:28:35,913
So generative AI, which they have put in
later.

440
00:28:36,714 --> 00:28:42,535
Um, and they have struggled a lot with the
fact that

441
00:28:42,628 --> 00:28:46,950
The AI Act was based on use cases and
suddenly there is a system that you can

442
00:28:46,950 --> 00:28:49,051
use for many use cases.

443
00:28:49,511 --> 00:28:57,616
So I think that if you use generative AI
for high risk, then you just do the same

444
00:28:57,616 --> 00:29:00,057
thing as you have to do for any other
system.

445
00:29:00,057 --> 00:29:03,659
You have to assess the impact, you have to
comply with certain things.

446
00:29:03,839 --> 00:29:10,763
Now, if you use a third party for
generative AI, like OpenAI or Microsoft,

447
00:29:10,963 --> 00:29:12,463
for your use case,

448
00:29:12,720 --> 00:29:19,902
of little risk, nothing to do from the
user perspective, from the company

449
00:29:19,902 --> 00:29:20,622
perspective.

450
00:29:20,622 --> 00:29:23,843
But if you are using it for high risk,
then you have to comply.

451
00:29:23,843 --> 00:29:28,964
And that means there is a transparency
obligation towards the provider that the

452
00:29:28,964 --> 00:29:32,725
provider has to say, okay, this system is
trained on this data, I've done this

453
00:29:32,725 --> 00:29:36,366
checks on bias, I can monitor, etc.

454
00:29:36,366 --> 00:29:40,307
So that is a kind of tension that is
written in the law.

455
00:29:40,516 --> 00:29:45,159
but we don't know how it spells out in
practice.

456
00:29:45,660 --> 00:29:52,526
And then if you are a provider of such a
model like OpenAI or like Microsoft, then

457
00:29:52,526 --> 00:29:55,869
they speak about systemic risk systems.

458
00:29:55,869 --> 00:30:02,214
And that means systems that are so big
that they actually can create an impact in

459
00:30:02,214 --> 00:30:03,855
society at large.

460
00:30:04,777 --> 00:30:07,179
And there are some requirements on top of
the system.

461
00:30:07,179 --> 00:30:08,344
So they have to...

462
00:30:08,344 --> 00:30:12,344
have a system of notification, they have
to alert system, they have to check

463
00:30:12,605 --> 00:30:14,545
periodically the data, et cetera.

464
00:30:15,005 --> 00:30:17,726
And they have to report on those things to
the European Commission.

465
00:30:17,726 --> 00:30:22,407
But how they check, what they check is
left to the industry.

466
00:30:22,407 --> 00:30:28,249
So it's a kind of hybrid self-regulation,
formal regulation, and that is definitely

467
00:30:28,249 --> 00:30:33,530
a compromise between different
perspectives.

468
00:30:33,530 --> 00:30:37,591
And in my view, and that's my personal
view, is a...

469
00:30:38,024 --> 00:30:45,267
incorrect discussion, because it speaks
about either you innovate, or you are

470
00:30:45,267 --> 00:30:46,427
responsible.

471
00:30:46,707 --> 00:30:51,389
Yeah, so if you want to innovate, you
cannot be responsible, because there are

472
00:30:51,389 --> 00:30:55,871
other countries, yeah, who are not
responsible, and they can innovate faster.

473
00:30:56,031 --> 00:31:02,294
So that's the kind of discussion that's
put up like the US innovates, China

474
00:31:02,294 --> 00:31:05,635
copies, and the EU regulates.

475
00:31:06,555 --> 00:31:07,656
Now,

476
00:31:07,828 --> 00:31:15,210
If you speak about responsible AI by
design, so regulation by design for high

477
00:31:15,210 --> 00:31:20,531
risk things, that means that in all the
way, in all the process that you build

478
00:31:20,531 --> 00:31:25,072
things like chat GPT or whatever, you
start thinking already, or what could be

479
00:31:25,072 --> 00:31:27,953
the impact if things go wrong or what
about hate speech?

480
00:31:27,953 --> 00:31:28,733
How do I train?

481
00:31:28,733 --> 00:31:31,254
So you think in advance about all those
things.

482
00:31:31,254 --> 00:31:37,200
And then in the end, what comes out of it
is probably a more responsible.

483
00:31:37,200 --> 00:31:40,362
project rather than correcting it once in
the market.

484
00:31:40,943 --> 00:31:45,807
And also think, if you launch something to
the market and you discover a problem,

485
00:31:45,807 --> 00:31:50,551
which has happened several times with
Google, with the generative AI's they put

486
00:31:50,551 --> 00:31:56,236
in the market, actually impact and the
cost of repairing that is much higher from

487
00:31:56,236 --> 00:32:00,619
all perspectives than if you do it while
you are designing.

488
00:32:00,619 --> 00:32:01,279
Yeah.

489
00:32:02,612 --> 00:32:07,714
And then there are actually several
business benefits from doing innovation in

490
00:32:07,714 --> 00:32:08,575
a responsible way.

491
00:32:08,575 --> 00:32:12,817
So it's not doing either you innovate or a
responsible, no, you innovate in a

492
00:32:12,817 --> 00:32:13,758
responsible way.

493
00:32:13,758 --> 00:32:20,481
And if you do that, society is more and
more requiring companies to be responsible

494
00:32:20,481 --> 00:32:21,622
beyond profit.

495
00:32:21,622 --> 00:32:23,443
We see that with climate change.

496
00:32:23,803 --> 00:32:26,024
Climate change is actually a business
factor.

497
00:32:26,024 --> 00:32:31,847
And now at this moment, investors look at
your climate rankings and ratings.

498
00:32:32,000 --> 00:32:34,922
and emissions before they invest in you.

499
00:32:34,922 --> 00:32:40,866
So there is a trend that even your
customers value, not only your profits,

500
00:32:40,866 --> 00:32:43,948
but also value your responsibility.

501
00:32:43,948 --> 00:32:47,811
So if you're responsible and you show
that, and actually you do it actually in

502
00:32:47,811 --> 00:32:50,292
practice, that's a positive point.

503
00:32:51,933 --> 00:32:53,954
The same for your employees.

504
00:32:54,075 --> 00:33:00,059
So employees become more and more aware of
those things and they want companies that

505
00:33:00,059 --> 00:33:00,940
not only

506
00:33:00,940 --> 00:33:05,422
make money, but it also have a responsible
role in society.

507
00:33:06,363 --> 00:33:10,005
So that also is actually a business
benefit.

508
00:33:10,005 --> 00:33:13,666
If you are a responsible company and
you've thought about the things, actually

509
00:33:13,727 --> 00:33:20,370
governments who are also your customers,
they talk to you more.

510
00:33:20,370 --> 00:33:24,573
They ask you for support when this goes
about regulation of AI.

511
00:33:24,573 --> 00:33:25,813
They want to have your opinion.

512
00:33:25,813 --> 00:33:29,955
So you create actually a better
relationship.

513
00:33:31,341 --> 00:33:35,924
with the public administration, which
always is a large buyer of many companies.

514
00:33:35,924 --> 00:33:40,528
So, of course, those are not so intangible
that they appear on the balance sheet, but

515
00:33:40,528 --> 00:33:44,771
I think those are all recognized factors
that are positive.

516
00:33:47,018 --> 00:33:50,980
You recently left Telefonica, although I
know you're still very involved in this

517
00:33:50,980 --> 00:33:53,941
whole area of responsible AI in various
contexts.

518
00:33:53,941 --> 00:34:00,545
Tell us what you see as the biggest issues
going forward that companies and other

519
00:34:00,545 --> 00:34:02,165
organizations need to focus on.

520
00:34:04,524 --> 00:34:10,567
I think on the short time for companies,
it is, I mean, depending of course, where

521
00:34:10,567 --> 00:34:14,849
they are, but in Europe is be prepared for
the regulation.

522
00:34:15,109 --> 00:34:19,631
And that for some companies is going to be
like the GDPR was a lot of work.

523
00:34:19,892 --> 00:34:25,815
So it will be a lot of work, but it is not
something completely new.

524
00:34:25,815 --> 00:34:32,218
We kind of copying the process we did for
GDPR with a different content, some maybe

525
00:34:32,218 --> 00:34:33,559
a bit more difficult.

526
00:34:34,500 --> 00:34:41,363
But so it will, that is, I think, one of
the things that is coming from a company

527
00:34:41,363 --> 00:34:42,543
perspective.

528
00:34:43,223 --> 00:34:47,906
I think another thing that is, should be
coming and is maybe not yet coming are

529
00:34:47,906 --> 00:34:56,589
more the indirect and more global effects
of the use of artificial intelligence.

530
00:34:56,770 --> 00:35:01,388
So what happens to the future of work is
in the end.

531
00:35:01,388 --> 00:35:05,409
Creating more work or is it creating less
work if it creates less?

532
00:35:05,609 --> 00:35:08,530
So what does it mean for the financial
sustainability of states?

533
00:35:08,530 --> 00:35:11,011
Because there will be less income taxes.

534
00:35:11,011 --> 00:35:13,452
Is this the time for Robo tax?

535
00:35:13,472 --> 00:35:15,853
Is it the time for UBI?

536
00:35:15,873 --> 00:35:22,616
So those discussions are not dealt with at
the moment with regulation.

537
00:35:23,477 --> 00:35:24,937
But I think they are important.

538
00:35:24,937 --> 00:35:29,199
There is also an issue on equality and
gaps.

539
00:35:29,199 --> 00:35:31,079
So this is.

540
00:35:31,764 --> 00:35:33,644
very powerful technologies.

541
00:35:33,644 --> 00:35:40,526
It helps increase global GDP, it helps
increase national GDPs, and also market

542
00:35:40,526 --> 00:35:42,747
caps and profits of companies.

543
00:35:42,747 --> 00:35:47,928
But if you look at how this wealth is
distributed, then it's ending up in a few

544
00:35:47,928 --> 00:35:51,329
countries and in a few companies.

545
00:35:51,349 --> 00:35:59,491
So there is a challenge on how to make
that a fair system in the long run.

546
00:36:00,000 --> 00:36:04,742
Otherwise, if we keep going as we are, so
the companies who are doing this now, they

547
00:36:04,742 --> 00:36:08,943
will become bigger and bigger and bigger
and more powerful and more powerful, and

548
00:36:08,943 --> 00:36:14,906
they will become richer and richer and
richer at the expense of other people.

549
00:36:14,906 --> 00:36:15,066
Yeah.

550
00:36:15,066 --> 00:36:22,409
So the question of leaving nobody behind
is very important here and is not dealt

551
00:36:22,409 --> 00:36:23,049
with either.

552
00:36:23,049 --> 00:36:28,371
So regulation takes things into account of
the direct impact of AI.

553
00:36:28,932 --> 00:36:32,715
within the scope of individual
organizations.

554
00:36:33,136 --> 00:36:40,165
But the global issues that survive the use
of this technology at large, they are

555
00:36:40,165 --> 00:36:43,087
still only part of discussions.

556
00:36:44,262 --> 00:36:46,068
Okay, much to think about.

557
00:36:46,068 --> 00:36:50,181
Richard, I want to thank you so much for
joining me on the road to accountable AI.

558
00:36:50,984 --> 00:36:53,955
Okay, it was a pleasure to be here, Kevin.

