Government Policy on Artificial Intelligence for Financial Inclusion and National Security
Introduction
The Council of Ministers has ratified a policy that promotes the use of artificial intelligence (AI) to bolster the country’s financial inclusion prospects and strengthen national security networks.
Financial Inclusion
Ratified two weeks ago, the policy touches on everything from water and energy to agriculture and healthcare. The section dealing with financial inclusion targets three major aspects: financial literacy, credit scoring, transaction costs and market frictions, and a common pool of investment opportunities.
Officials see the general lack of financial literacy in the country leaves the majority of businesses fragile and vulnerable to small changes in the market or environment, making it difficult for them to adapt and survive.
“Financial literacy is an important risk factor, and an important consideration when encouraging people to switch to more formal financial products such as credit cards, mortgages and such,” reads the policy.
The government wants to see AI used to help build training materials for deployment in public computing centers. Linking the materials to formal recognition of achievement and access to micro-financing credit lines where possible, in order to encourage broad participation is part of the strategy.
Using programs like Financial Literacy and additional survey-based behavioral instruments, officials envision AI will assist financial institutions build sufficiently useful financial profits of large numbers of unbanked people to create commercially viable opportunities that could increase economic development.
Officials are hopeful that AI’s involvement in credit scoring, transaction costs and market frictions could hold benefits in lending and due diligence, the provision of tailored financial products, lowering transaction costs, and reducing market friction between providers and consumers of credit, according to the policy document.
National Security
The policy also envisions utilizing AI in regulating financial markets and safeguarding investments through the identification of fraudulent activity and anomalies and the provision of value-added analysis of investment and funding opportunities.
The policy issued by the Council also states that AI would be leveraged towards the goals of defending Ethiopia’s national interests and internal territorial integrity. It would be applied in unmanned aerial surveillance, monitoring communications over complex network architectures, counter-terrorism activities, and countering foreign propaganda and disinformation campaigns, according to the policy.
Officials see AI as a tool that can be used to identify ‘‘unexpected’ changes in the landscape and the utilization of unusual equipment, and augment existing on-the-ground monitoring systems and human deployment.
The policy slates AI for use in unmanned aerial vehicles (drones) satellite imagery, mobile surveillance operations, and the availing of high-bandwidth connections to security services data centers for aggregate analysis in near-real-time.
Officials want to see AI tools implemented in the lawful monitoring of suspected terrorists or other criminal elements and security threats. The policy notes that algorithms can be utilized to maintain profiles, trigger events for security personnel, and surface additional linked content for review.
Conclusion
The Council’s policy on AI for financial inclusion and national security aims to leverage the technology to promote economic development and strengthen national security networks. By utilizing AI in financial literacy, credit scoring, and transaction costs, the government hopes to increase financial inclusion and create commercially viable opportunities. In the realm of national security, AI will be used to identify and monitor potential threats, and to provide value-added analysis of investment and funding opportunities.
FAQs
Q: What is the main goal of the policy?
A: The main goal of the policy is to promote the use of artificial intelligence (AI) to bolster the country’s financial inclusion prospects and strengthen national security networks.
Q: What are the three major aspects of financial inclusion targeted by the policy?
A: The three major aspects of financial inclusion targeted by the policy are financial literacy, credit scoring, transaction costs and market frictions, and a common pool of investment opportunities.
Q: How does the policy envision AI being used in financial literacy?
A: The policy envisions AI being used to help build training materials for deployment in public computing centers, and linking the materials to formal recognition of achievement and access to micro-financing credit lines where possible.
Q: What are the potential benefits of AI’s involvement in credit scoring, transaction costs and market frictions?
A: The potential benefits of AI’s involvement in credit scoring, transaction costs and market frictions include benefits in lending and due diligence, the provision of tailored financial products, lowering transaction costs, and reducing market friction between providers and consumers of credit.
Q: How does the policy envision AI being used in national security?
A: The policy envisions AI being used in unmanned aerial surveillance, monitoring communications over complex network architectures, counter-terrorism activities, and countering foreign propaganda and disinformation campaigns.
Q: What are the potential benefits of AI’s involvement in national security?
A: The potential benefits of AI’s involvement in national security include the ability to identify ‘‘unexpected’ changes in the landscape and the utilization of unusual equipment, and augment existing on-the-ground monitoring systems and human deployment.
