Artificial Intelligence (AI) Development and Its Law and Ethics in Nepal

Thank you so much for this opportunity to give my opinion on Artificial Intelligence (AI) Development and Its Law and Ethics in this Global University Presidents & Leaders’ Summit 2024. As AI has emerged as a transformative force globally, influencing sectors from healthcare and education to governance and the economy, global orientation is very important.

In most developing countries, AI development remains in its nascent stages but is gradually progressing, albeit at a slower pace. Efforts have primarily focused on integrating AI into key sectors such as healthcare, education, agriculture, and governance. However, these countries face significant challenges, including limited infrastructure, a shortage of skilled AI professionals, and insufficient funding for research and development.

For AI to contribute constructively to global development, the international system must prioritize distributive justice, particularly in addressing the needs and transformative potential of developing countries. This is my first emphasis. Equally important is my second emphasis: fostering high-quality relationships between universities in the developed world and those in countries like Nepal. Such partnerships must ensure meaningful collaboration and the equitable exchange of knowledge and resources, enabling a more inclusive and sustainable approach to AI development worldwide.

For example, Nepal’s legal framework has yet to comprehensively address AI-specific issues. Existing laws, such as the Electronic Transactions Act, 2008, cover certain aspects of digital and cyber activities but fall short in addressing AI’s unique complexities. Key areas that require legal attention include data protection and privacy, liability and accountability, and intellectual property rights. While the efforts towards reform show promise, Nepal lacks robust legislation to regulate the collection, storage, and use of data, which is critical for AI systems. Legal ambiguities exist regarding accountability for AI-driven decisions, especially in cases of errors or harm caused by autonomous systems. Nepal’s intellectual property laws do not account for AI-generated works or innovations, creating uncertainties in ownership rights. Nepal could benefit from studying international frameworks, such as the European Union’s AI Act, and adapting them to its socio-economic and technological context.

The ethical implications of AI are significant and multifaceted. Nepal must address these concerns proactively to ensure AI is developed and deployed responsibly. Key ethical challenges include bias and discrimination, transparency and explainability, and human rights and autonomy. AI systems can perpetuate existing biases if trained on unrepresentative data, leading to discrimination in areas such as hiring, lending, and law enforcement. The “black box” nature of many AI models makes it difficult to understand their decision-making processes, raising questions about fairness and accountability. The potential misuse of AI for surveillance and manipulation poses risks to individual freedoms and democratic values. Nepal can draw on international principles such as UNESCO’s Recommendation on the Ethics of AI and align them with local cultural and social values.

Nepal faces several challenges in fostering AI development and governance. There is limited expertise in the country. A shortage of AI professionals and researchers hampers innovation. Similarly, inadequate computational resources and internet penetration restrict AI deployment. The absence of AI-specific policies limits the government’s ability to regulate and promote the sector effectively. However, opportunities abound as Nepal’s young population, with increasing access to digital education, can be a driving force in AI innovation and global collaboration. AI can also address uniquely Nepalese challenges, such as disaster management and cultural preservation.

As we go along, in most of the developing countries, a comprehensive roadmap outlining goals, priorities, and resources for AI development and regulation has become a must. There is also an urgency for amended laws addressing data protection, liability, and ethical use of AI. These laws must also promote investments in AI education, research centers, and public-private partnerships to build local expertise. Establishing ethical guidelines is also necessary.

Finally, I am sure AI holds immense promise for all of us, offering solutions to long-standing challenges and opening new avenues for growth. However, its development must be accompanied by robust legal and ethical frameworks to mitigate risks and ensure equitable benefits. By adopting a proactive and inclusive approach, and with the technological support of the advanced countries, most of the developing countries can navigate the complexities of AI and emerge as a responsible player in the global AI context. With justice, equity, and fairness, the challenge of potential technological divides can be mitigated, enabling the Global South to prosper alongside the rest of the world.

Thank you so much!

(Presented at the Global University Presidents & Leaders’ Summit 2024, organized by the Hong Kong Association for External Friendship on December 2–3, 2024.)

Bipin Adhikari
Artificial Intelligence (AI) Development and Its Law and Ethics in this Global University Presidents & Leaders’ Summit 2024
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