“Develop a Nordic AI strategy or get overtaken by multinationals”

The Nordic region should develop a common strategy for ethical AI. That is the conclusion from an expert group that has studied Nordic collaboration on artificial intelligence.

Denmark, Finland, Norway, Iceland and Sweden already have their own national AI strategies, which individually establish how the new technology should be used ethically. 

The Nordic AI reports. All can be downloaded by clicking the respective countries here (in original languages): Danmark, Finland, Sverige, Island, Norge.

“But the absence of a unified Nordic approach leads to missed opportunities for regional synergies and collaboration. We could address common challenges more effectively together," says Olivia Rekman, an advisor at Nordic Innovation, which initiated The Nordic Ethical AI Expert Group.

The group has put forward five proposals, which in addition to that of developing a common Nordic AI strategy are:

1. Establish a Nordic centre for ethical and responsible AI.
2. Collaborate on large language models, so that also the smaller Nordic languages can benefit from AI.
3. Integrate AI and ethics in education to get a competent workforce..
4. Develop a standardised method to assess the environmental impact of AI.

“We asked 23 of the leading AI experts in the Nordics to look at ethical AI and identify what can be done on a system level in the Nordic countries. They have agreed on five recommendations and at the end of August we have been invited to meet the Nordic ministers of digital affairs,” says Svein Berg, the managing director of Nordic Innovation.

Svein Berg, the managing director of Nordic Innovation.

For every recommendation, there is also a plan for how it could be executed. Initially, the Nordic Centre for AI could be a virtual organisation. Berg is careful to point out that it would not compete with national innovation organisations or businesses.

Nor will the centre perform research on AI, but be a hub for experts, researchers, political decision-makers and people working with AI. The centre will focus on helping Nordic businesses integrate AI through practical application-driven programs.

One thing everyone involved in AI agrees on is that there is a need for more education to meet the demand for expertise.

“We have discussed extensively in the expert group how to identify barriers to making the Nordics a leader in ethical AI. Competence and access to talent are two obvious ones,” says Olivia Rekman.

Both Berg and Rekman say the development is progressing rapidly.

The world's five largest companies ranked by market value.  9,430 are part of the index. They are collectively worth over 110,251 billion dollars. The five largest tech companies make up 13,542 billion dollars – more than eight per cent. The figures are from 22 August 2024.

“Eight of the largest companies on the American stock index are now tech companies. That’s where value is created today and our future welfare. That is why it is crucial that we keep up to be competitive. It is a kind of race.

"It’s extremely important that we also have Nordic AI companies. If we don't invest in educating the workforce, other players, like Microsoft, will take over and set the agenda. It is not negative in itself, but we must consider the shift in power that this entails, when value creation and the agenda are not set by Nordic actors" says Olivia Rekman.

As one example, she mentions how Microsoft is set to invest 34 billion Swedish kronor (€3bn) in Sweden, but that there is no corresponding government spending. This is not only about the Nordics trying to develop a faster and thinner computer chip or generative computer programs like ChatGPT or Microsoft Copilot.

“There are so many other parts of the value chain where Nordic enterprises can take part. This development will impact all sectors and businesses, like when the interTnet emerged,” says Svein Berg. He also sounds a warning.

“Are we blinded by the huge potential? Does this mean we don’t see the dangers? But then the question is: What are the alternatives? We are already on the hamster wheel. We have to participate in international competition, but we have to find a responsible way of doing it.” 

One of the major advantages enjoyed by the Nordics is access to high-quality data. This is important for training AI programs, such as those being used for diagnosing diseases. Sweden was the first country in the world to introduce personal numbers, back in 1947.

“We have fantastic health data in the Nordic region. We have advocated for making this data more widely available. Finland has legislation making health data available for research and innovation. In the other Nordic countries, it is only available for research. It is difficult for innovators to get hold of this type of information.”

But is it not naive to think we can grant Nordic companies access to this information without foreign companies being able to purchase it at a later stage?

“Dilemmas emerge in many cases of innovation. Sometimes it is an advantage for a company situated in the Nordics to be acquired. We have looked at the figures: Growth companies that are acquired by foreign capital experience higher growth in the Nordics than those that remain in Nordic ownership. The companies are not bought and then moved abroad. This is a myth. 

“We have also been working with what is called Nordic Smart Government & Business. It started with company registers and business agencies exploring the possibilities for seamless financial information exchange between the Nordic countries.

“Over time, the national statistical agencies and tax authorities have also joined in. The goal is to make things easier for businesses. Ernst & Young has estimated that this could save 25 billion euro per year in the Nordics," says Svein Berg.

But there are also negative aspects of AI – such as its high energy consumption. 

“Isn't it true that a search for information on AI uses ten times more energy than on the internet?" Svein Berg asks. 

"Yes," replies Olivia Rekman.

“There are estimates that by the International Energy Agency, which shows that by 2040 30 – 40 per cent of all electricity will be used by ICT. I believe this will become a major issue in the years ahead," she adds.