AI is exciting, but needs regulation, say experts

The unprecedented speed of technological change and its impact on every aspect of our lives was the theme of a recent Business Day Focus 4.0 conference, presented in partnership with Netstar, Absa, FedEx, Solid8 Technologies and GoSolr.

The event (watch the recording below) featured two expert panel discussions, moderated by SABC Business News anchor Nastassia Arendse.

The first discussion delved into the impact of technological innovations on business, with a particular focus on artificial intelligence (AI).

Of course, technology must be powered by energy and, in turn, innovation has a huge role to play in SA's Just Transition. Thus the second discussion looked at fostering an enabling environment for green energy financing.

WATCH THE RECORDING:

The future of tech: challenges and opportunities

Arendse opened the first panel discussion by asking where SA was in relation to the Fourth Industrial Revolution (4IR), which includes robotics, the Internet of Things, virtual reality and AI.

“We’re falling behind; the focus is not there,” said Patrick Devine, data security specialist at Solid8 Technologies. “Investment is drying and we aren’t competitive in many areas, though there are pockets of excellence that should be expanded, rather than slogans and high-profile exercises in futility.’’

Clifford de Wit, chief technology officer (CTO) at Altron Netstar, said SA wasn't too far behind on the consumption side in the private sector, but “the problems we face are often quite different from the problems in a mature market’’, and SA  requires better research & development.

Tando Mtintsilana, an IT and telecommunications professional, highlighted the “huge digital divide’’ between the private sector and ‘’the vast plains of rural SA reliant on government for service delivery’’.

Yet, he said, there are a number of initiatives co-funded by the government, such as the Council for Scientific and Industrial Research's work on using AI, digital twinning and virtual reality to enhance safety, efficiency and employment in mining.

But SA isn't seeing an acceleration of AI in service delivery. For example, while private health care was leveraging AI in leaps and bounds, it remained a challenge in the public sector and rural areas. Among the barriers to AI entry for many firms was the cost of professional services. The participation of women as well as youth training in new tech was also stressed.

De Wit observed the adoption of AI often starts with the coolness factor, “sprinkling magic AI fairy dust on everything’’ without management understanding how the technology can practically help to run the business and serve customers better.

Devine advised: “You’ve got to know what your outcome is before you go in and clean up what you’ve got.’’

In short, focus on the problems you have; don’t force-fit technology into your environment.

On cybersecurity, Devine noted that the explosion of data had to be compartmentalised, with top secret matters handled with extra care. Consumer trust was paramount, and good security practice was a big part of it.

Never be complacent about data security, De Wit advised. “It’s an evolving discipline.’’

How hard is it to get the CFO to buy in to new tech?

Always take your CFO on the journey you’re on, and explain why you need the money, said De Wit. With the executive committee backing your tech strategy, investment became an easier conversation.

Is ChatGPT scary or exciting, Arendse asked. Devine was excited but equally nervous because it was being driven by tech entrepreneurs and, he said, there was no controlling them. “It can end up as a nightmare; it needs regulation.’’

Ethical considerations are important in embracing AI, warned Mtintsilana: beware AI models that make financial decisions based on hidden code which could include, say, racial bias.

De Wit said the challenge with AI is that it’s a fundamentally different way of creating software. Up to now, a human has determined the algorithm. With AI we create what at present is a simple brain and feed it training data, he said, unsure what it will do in all situations, hence the need for guardrails. 

AI is exciting, the panel agreed, but needs regulation. While a number of countries are tightening controls without stifling innovation, technology tends to run ahead of the checks and balances.

Renewable energy: a ray of hope for SA

In the second panel discussion, GoSolr co-founder and CTO Patrick Narbel suggested that if ChatGPT was asked to summarise a Just Energy Transition (JET) it would come out with: JET is about creating economic growth. It aims to create sustainable jobs and reduce carbon emissions at the same time — and quickly.’’

Absa renewable energy sector head Rashveer Manilal said JET came down to two things: reskilling (away from the coal industry to renewables) and local production of solar technology.

Going solar for purely sustainability goals would be unaffordable for ordinary consumers burdened by high and rising electricity prices.

The good news is SA is an attractive market for solar, the cost has dived and Eskom’s power cuts are driving solar demand, Manilal said. In fact, Absa has seen a growing number of former CCTV installers wanting to switch tack and get into the solar installation game.

However, new financial and government incentives are required to make solar accessible to everybody.

Natasha Parmanand, MD of operations: Sub-Saharan Africa at FedEx, said clean energy and ESG (environment, social and governance) goals are integrated at FedEx. Globally 60% of its consumers and 46% in SA look at sustainability before buying, even if biodegradable packaging costs more. FedEx aims to be carbon neutral by 2040.

Government is starting to look at incentives to spark solar growth, such as the Bounce Back scheme for funding at preferential rates, and the Agri Energy Fund from the agriculture department offers good incentives to farmers to install solar.

The issues raised in both panels are complex, none more so than AI, whose advance 1,000 tech leaders, including Steve Wozniak and Elon Musk, have said should be paused for six months due to its unknown power. SA’s challenge, however, is to bridge the digital divide between rich and poor.

ESG is not just about an outlay of capital but rather a route towards a sustainable future that requires a change of mindset, which more and more people are willing to do.

In renewable energy, there is, to quote GoSolr’s Narbel, a huge ray of sunshine coming.

This article was sponsored by Arena Events.