Digital transformation and artificial intelligence: the fourth revolution reaches the States

The constant acceleration of technological and scientific advances is one of the characteristic features of the 21st century. We live in a world of volatility. If a few decades ago the world left behind the third industrial revolution, a period marked by automation and the development of telecommunications networks, now digitalisation and the application of new tools to this system, such as artificial intelligence (AI), have entered the scene, the perfect breeding ground for the fourth industrial revolution. A revolution that will occupy political and social agendas in the coming years.

In this transitional scenario, CAF ¬(Development Bank of Latin America) has organised this Wednesday, in collaboration with Telefónica, Microsoft and C4IR.CO, a centre affiliated with the World Economic Forum, an online event entitled "ExperiencIA: Data and artificial intelligence in the public sector", which aims to be a meeting point for experts with the capacity to shed light on the background of this new era and serve as a palliative to the widespread ignorance on the subject.

CAF's Executive President, Sergio Díaz-Granados, opened the event with a speech that highlighted the institution's commitment to and knowledge of the new challenges in the digital sphere. The former Colombian Minister of Trade, Industry and Tourism, now at the helm of the development bank, detailed the projects being carried out by the institution and stressed that "artificial intelligence is here to stay". "It is an opportunity for improvement and an ethical challenge", he remarked.

This technology has the capacity to find solutions to various public problems, such as corruption, fraud, the challenges of public health or the improvement of services. However, it also brings with it a number of moral dilemmas arising from the use of data. In fact, never before in human history have so many such dilemmas been generated. Díaz-Granados argues that, in the face of this, "you have to establish ethical principles and adequate controls". "It is necessary to maintain the structure," he added.

"No one should be left behind," said the CAF executive president. A message that governments and institutions have repeated ad nauseam in recent months in the face of the challenge of post-pandemic recovery. Díaz-Granados is committed to inclusive, accessible and fair digitalisation. All sectors of society must be involved in order to draw up a new social contract that involves citizens and makes them participants in the technological changes of the administration. 

The world is moving forward," the President added, "and we must strike a balance between regulation and development. Artificial intelligence, which comes hand in hand with the fourth industrial revolution, must have a place in the public spheres of health and education. "Algorithms can and should help in decision-making, but never make decisions on their own. Humans are not going to be replaced," said Díaz-Granados, although he concluded by admitting that this technology "is neither good nor bad 'per se', but depends on how it is used".

He was followed by the director of the Administrative Department of the Presidency of the Republic of Colombia and C4IR.CO board member Víctor Muñoz, who revealed a $40 million investment by the Colombian government in this sector. "AI leads to economic development," he said. However, the Latin American country has counted on the support of the CAF at the economic and training level. In this way, Colombia became a pioneer in the region in working within an ethical framework.

Carme Artigas, Secretary of State for Digitalisation and Artificial Intelligence, a department under the Ministry of Economy and Digital Transformation of the Government of Spain, took over to present the country's vision and development along this path. With more than 25 years of experience in the sector, Artigas informed those present that Spain is "immersed in a deep and ambitious digital transformation project". For Spain, AI is a basic pillar "to reshape the administration".

According to Artigas, this is a unique opportunity to "modernise the productive process" and reconvert the Spanish economic fabric. As in many other countries, the COVID-19 crisis has provided a propitious context for reforming the foundations of a system that has found itself on the ropes. For this reason, the Spanish government has mobilised 600 million for change until 2023, the end of the current legislature.

The Secretary of State maintains that this 21st century reindustrialisation must be carried out "through the public sector", although, for an effective transition, it must be undertaken jointly with the private sector. The figures back up this transformation. European Union figures put the number of new jobs at 60 million by 2015, while productivity and GDP percentages would increase by around 40%.

Stefano Quintatelli, chairman of the steering committee of the Italian Digital Agency and member of the European Commission's High Level Expert Group on AI; telecommunications engineer Nuria Oliver; and Carlos Martínez, global director of IoT Solutions and Services, Big Data and Artificial Intelligence at Telefónica, took part in the panel discussion moderated by researcher Andrea G. Rodríguez.

The profuse and interesting ideas that emerged in this space would have the capacity to occupy an infinite number of theses, however, the terms of the conversation revolved around three main points: the challenges to individual freedom posed by the massive collection of data, the adaptation of the digital transition in the public sector and the need to form a digital education for both citizens and the political class, who ultimately have the power to establish the laws.

Quintarelli, who has served in the transalpine Parliament and worked on several related bills, said he was "absolutely positive" about technological advances and pointed out that society has an erroneous perception of what the digital transition means, partly inherited from cinema, literature, etc. "Science fiction," he said. However, the Italian opened a melon: "Digitising activity changes the scale, changes the speed and changes the nature of the issues. And in the end, a problem that seemed to be simply technical becomes very political".

"When we have all the data digitised, under whose authority do we put it? "It is the fourth power of the state, the computing power, and we have to decide who holds it," Quintarelli said. For this reason, citizens must perceive that their representatives are capable. According to Oliver, who is considered one of the most prodigious Spanish minds in this field, "there is a disenchantment with public representatives partly due to a lack of digital knowledge".

"It is necessary to invest in digital culture for the political class", Quintarelli responded. In this respect, Martínez added that the structure of the State must use the path opened up by the private sector and not make the same mistakes made by companies. Finally, the speakers advocated allowing the owner of the data to be able to access it at all times and to monitor which public profile has made use of it. A measure in operation in Estonia, which adds to a long list of challenges emerging from this new phase.