May 7, 2024. Shanghai – With the resurgence of excitement around ChatGPT in late 2022, artificial intelligence (AI) has once again taken the lead in tech headlines. The level of AI development varies between countries, and the use cases of AI have partially different focus areas. Nevertheless, there also exists a fundamental understanding that only through collective efforts can nations worldwide create a future where AI serves for the benefit of humans in the long run, Senior Vice President and Head of Global SAP Labs Network Dr. Clas Neumann told a CEIBS Executive Forum audience on May 7th.

Dr. Neumann was at CEIBS for a discussion on the theme Artificial Intelligence - Generating the Future. With over two decades of experience in Asia, Dr. Neumann oversees the global labs of the German software company and has played an instrumental role in SAP’s entry into China. Currently, he also serves as the Chairperson of the German Chamber of Commerce East China.

AI is ushering global organisations into a new era of growth, innovation, and economic progress. Dr. Neumann began by discussing SAP's unique Business AI solution, highlighting how it merges AI's benefits with SAP's comprehensive solution portfolio and affirming his belief that it can unleash the full potential of data, enhance business processes, and build new competitive edges, thereby fostering high-quality enterprise development. As a crucial part of the SAP value chain, Dr. Neumann stated that SAP's global Labs Network plays a vital role in providing advanced solutions to customers worldwide.

After that, by describing the ubiquitous AI applications in all facets of our lives, Dr. Neumann warned that “while we appreciate the convenience that AI introduces into our lives and work, we should be aware of the array of challenges it presents, such as unemployment, inequality, bias, humanity, AI hallucination, security, privacy, and singularity.”

As AI technology unfolds differently in different parts of the world, he pointed out that China’s AI industry is experiencing rapid growth, with major breakthroughs marked by the nation’s “Next Generation Artificial Intelligence Development Plan” in 2017, which underscored the government's ambition to become global AI leader by 2030.

This initiative was swiftly followed by actions that produced tangible results, he went on. “Over the past 10 years, China leads the rest of the world in terms of AI patents granted. Public acceptance of AI in China is also among the highest globally, with 78% of the population positive about AI products and services,” Dr. Neumann said, adding that Chinese researchers also contribute significantly to the number of AI research papers published in international journals.

In talking about the sectors impacted the most by AI, Dr. Neumann highlighted that automotive and manufacturing are two industries that prominently feature Al applications in China given the country’s increasing use of autonomous driving and massive manufacturing output.

“I visited a dark electronics factory some time ago where robots operated without light. Human engineers were only summoned when robots identified an issue and called the specific person with the right skills for assistance via an RFID chip worn by everyone on site,” he explained, describing a new way of working together between robots and humankind.

Having said that, Dr. Neumann further emphasised that AI is not an industry in which people should act with impunity. Rules applied in China may not applied in other parts of the world, and vice versa, he noted. Ensuring that such advanced software is fully compliant around the globe will not be easy.

“In China, we see that the focus of AI regulation goes away from pure cyber security to more of a data space, making sure that the data is classified, transparent, and follows certain structures, while in the West, Al applications are built more often on individualism, personal autonomy, decentralization, and the idea of globalisation,” he said.

However, AI competition is more than just an advancement of technological. It’s a subtle dance of power and influence. This doesn’t just define technological prowess, but also global standing.

“According to the Stanford AI Report, 70% of notable machine leaning models, and over 70% of AI-startups are shared between just the US and China. This leaves a small portion that’s shared among all the other nations. For countries, specifically in the global south, that don’t have the resources and infrastructure to develop their own AI models, they find themselves in the position of dependency on these two nations for access. The reality is, citizens in countries that lack local AI models are always left at the mercy of various stakeholders in between. This could potentially create an imbalance, fostering a situation where access and influence are not evenly distributed.”

Other challenges also exist in the gap between AI research and the rapid development of applications, as well as the impact of geopolitical tensions on scientific and technological development, Dr. Neumann added.

“In the business world, we leave more and more decisions to AI, and what we should keep is our ability to think critically about what the system is proposing to us, and be cautious about what the machine tells us,” he suggested.

Despite clouds on the horizon, Dr. Neumann remains optimistic about the outlook for AI. “There’s a glimpse of hope there. Last November, a collection of 27 countries across the world, including the European Union, signed a declaration in the UK pledging to work together on AI security,” he said, indicating that global effort remains essential to ensure AI is developed and used in a safe, responsible way for the benefit of mankind.