The warnings about AI are also about competitiveness 

The AI regulation has come into force and the results are starting to show. TechSverige's business policy expert Fredrik Sand advises the government to listen to the warnings of Ericsson CEO Börje Ekholm.

Ericsson CEO Börje Ekholm's warning was clear: "May the hell put it in America or India" he said in SvD (17/10). Now it's not about vacation plans or even that his company has discussed moving its headquarters from Kista. It is about where Ericsson should place the development of AI systems. The warnings about AI are thus inspired not only by dystopian depictions of the future, but also the reality that follows from the driest legal prose from Brussels. 

This is not a new issue - this was one of the concerns when the AI Regulation was negotiated. It has now come into force and the results are starting to show. The latest Apple phone does not offer full AI functionality when used in Europe. A concerned editorial in Dagens industri (17/10) lists a number of EU regulations that tech companies have to comply with: the General Data Protection Regulation (GDPR), the Digital Services Act (DSA) and the Digital Markets Act (DMA). There are more - during the outgoing Commission's term, no fewer than 116 legislative proposals were tabled relating to digitalization.  

We are now at a crossroads for AI. Should we repeat the mistakes of the introduction of the GDPR, with its high costs and hassle, for AI? The question is how Sweden can compensate for the situation that has arisen. 

First of all, the government and others should really listen to Ms Ekholm's words. If both Swedish and European competitiveness are to become a reality, the reality of businesses must be the starting point. Secondly, the government and the authorities must work to facilitate the use of AI in Sweden. The words of warning from one of Sweden's most important companies naturally raise expectations of the AI Commission appointed by the government. The appointment itself was commendable and there are good hopes as the commission is led by Ericsson's former CEO Carl-Henric Svanberg. The government has taken a number of other measures, including setting up an inquiry into the implementation of the AI regulation in Sweden. This will clarify practical issues such as the division of responsibilities between authorities. The division of responsibilities is extremely important for Sweden's position in the global competition for AI. We need a comprehensive approach and an application that does not inhibit the AI potential of industry.  

TechSverige adopted an industry code for AI already in 2019 and this year we published our report With AI as a tool, which focuses on the competitiveness issues. The issues are serious - AI could mean that Sweden's traditional industrial advantages, such as advanced manufacturing and a highly skilled workforce, could be undermined as AI adoption gains momentum. 

AI development creates opportunities and challenges for Swedish competitiveness. Given that about fifty percent of Sweden's GDP comes from the export industry and that our prosperity is very much based on this, Sweden needs to have a special focus on AI and competitiveness. Sweden and the EU need to have the best of conditions.