With AI grabbing headlines and developing at rapid pace, many are asking who’s in charge? A recent Citi report, AI Time- What You Need to Know about AI Regulation, aims to foster better understanding of the current environment for AI regulation across the globe, with a specific focus on the United States, United Kingdom, European Union, Singapore, and India. Progress of AI regulation globally © 2023 Citigroup Inc. No redistribution without Citigroup’s written permission. Source: Citi Global Insights It’s clear that countries are in various stages of evolving their approach to regulating AI and take differing views of how best to do it. According to Danny Tobey, who chairs law firm DLA Piper’s artificial intelligence unit, “there are over 700 active policy initiatives globally trying to regulate AI”. Additionally, Stanford University’s most recent Artificial Intelligence Index Report found that the number of bills dedicated to AI increased from 1 in 2016 to 37 in 2022 across 127 countries. The report points out that currently most governments opt for a more flexible approach to AI regulation, where there is a focus on principles rather than rules. This is most notable in the United States (AI Bill of Rights), United Kingdom (White Paper) and Singapore (Principles to Promote Fairness, Ethics, Accountability and Transparency (FEAT) in the Use of AI and Data Analytics) In the U.S, perhaps the most prominent issuance of regulation at the federal level is the Blueprint for an AI Bill of Rights, proposed by the Biden administration in October 2022. Published by the White House Office of Science and Technology Policy (the “OSTP”), the Bill of Rights is a non-binding document offering guidance on ways to mitigate risks posed by AI through the implementation of five key principles described in full in the report. By contrast, the EU stands out through its rules-based approach in its proposed AI Act, introduced in 2021 with the intention of being agreed upon in the EU Parliament and implemented later this year. Any corporation or entity subject to the obligations under the Act and operating within the EU can be sanctioned with fines if violations occur. Existing legislation around the world may be applied to tackle some of the adverse impacts of AI. For example, AI is unlikely to be excluded from privacy, data protection, competition and equality laws already in place. Given divergent government approaches, multinational corporations may look to adopt standards aligned with the strictest regulations to ensure there is consistency across global operations. AI has the ability to change society profoundly, with stakeholders trying to strike the right balance between fostering innovation and growth opportunities while managing disruption and risk challenges For more information on this subject, if you are a Velocity subscriber, please see AI Time: What you need to know about AI regulation (18 May) Citi Global Insights (CGI) is Citi’s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click here.

With AI grabbing headlines and developing at rapid pace, many are asking who&rsquo;s in charge?
A recent Citi report, AI Time- What You Need to Know about AI Regulation, aims to foster better understanding of the current environment for AI regulation across the globe, with a specific focus on the United States, United Kingdom, European Union, Singapore, and India.
&nbsp;
Progress of AI regulation globally
<img src="/rcs/v1/media/citigpa/akpublic/storage/retrieveMediaFile/6489df36fc89b02be00ca288.png" alt="AI" />
&copy; 2023 Citigroup Inc. No redistribution without Citigroup&rsquo;s written permission.
Source: Citi Global Insights
&nbsp;
It&rsquo;s clear that countries are in various stages of evolving their approach to regulating AI and take differing views of how best to do it. According to Danny Tobey, who chairs law firm DLA Piper&rsquo;s artificial intelligence unit, &ldquo;there are over 700 active policy initiatives globally trying to regulate AI&rdquo;. &nbsp;
Additionally, Stanford University&rsquo;s most recent Artificial Intelligence Index Report found that the number of bills dedicated to AI increased from 1 in 2016 to 37 in 2022 across 127 countries.
&nbsp;The report points out that currently most governments opt for a more flexible approach to AI regulation, where there is a focus on principles rather than rules. This is most notable in the United States (AI Bill of Rights), United Kingdom (White Paper) and Singapore (Principles to Promote Fairness, Ethics, Accountability and Transparency (FEAT) in the Use of AI and Data Analytics)
In the U.S, perhaps the most prominent issuance of regulation at the federal level is the Blueprint for an AI Bill of Rights, proposed by the Biden administration in October 2022. Published by the White House Office of Science and Technology Policy (the &ldquo;OSTP&rdquo;), the Bill of Rights is a non-binding <a target="_blank" name="bkm_PageNum_7" data-link-source="tiny"></a>document offering guidance on ways to mitigate risks posed by AI through the implementation of five key principles described in full in the report.
By contrast, the EU stands out through its rules-based approach in its proposed AI Act, introduced in 2021 with the intention of being agreed upon in the EU Parliament and implemented later this year. Any corporation or entity subject to the obligations under the Act and operating within the EU can be sanctioned with fines if violations occur.
Existing legislation around the world may be applied to tackle some of the adverse impacts of AI. For example, AI is unlikely to be excluded from privacy, data protection, competition and equality laws already in place.
Given divergent government approaches, multinational corporations may look to adopt standards aligned with the strictest regulations to ensure there is consistency across global operations.
AI has the ability to change society profoundly, with stakeholders trying to strike the right balance between fostering innovation and growth opportunities while managing disruption and risk challenges
For more information on this subject, if you are a Velocity subscriber, please see <a href="https://www.citivelocity.com/cv2/go/CV_OneSearch_Result/X19OQVZJR0FUSU9OX0JBU0U2NF9faHR0cHM6Ly93d3cuY2l0aXZlbG9jaXR5LmNvbS9yZW5kaXRpb24vZXBwdWJsaWMvcHVibGljL2RvY3VtZW50U2VydmljZS9kWE5sY2w5cFpEMVBSWGQxYlRkQ1NtbERWVDAvWkc5algybGtQVE13TVRVMk5UQTBKbkJzWVhSbWIzSnRTV1E5Tnpn" data-link-source="tiny">AI Time: What you need to know about AI regulation </a>(18 May)
Citi Global Insights (CGI) is Citi&rsquo;s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click <a href="https://ir.citi.com/6A3IURUaezPxFLppsgdBkqidjLaLn558JwHISYaDZcTfE9XMRB1isDDDVorqrxpR%2fTnEi4RUCl8%3d" target="_blank" rel="noopener" data-link-source="tiny">here</a>.

A recent report by Citi Global Insight’s Robert Garlick looks at the current state of the debate on regulating artificial intelligence.   

AI Time: What You Need to Know About AI Regulation 

The world’s data centres are on the verge of a decade long upgrade cycle as they retool and adopt high performance computing. Who’s going to do most of the work? Probably generative AI. That’s according to NVIDIA CEO, Jensen Huan. “You’re seeing the beginning of call it a 10-year transition to basically recycle or reclaim the world's data centres and build it out as accelerated computing,” Mr Huan said on a recent earnings call. “You’ll have a pretty dramatic shift in the spend of the data centre from traditional computing, and to accelerated computing with smart NICs, smart switches, of course, GPUs, and – and the workload is going to be predominantly generative AI,” he added. Citi research analysts say an acceleration of AI workloads and related IT infrastructure deployments are likely to be additive to the demand for data centre deployments for at least the first few years of this cycle, while the demand for power density could trend higher. AMD recently hosted its Data Centre & AI day at which it sized the AI GPU data centre opportunity at $150bn by 2027. That’s up from $30bn in 2023. Citi research analysts said they don’t expect existing general computing workloads to initially be cannibalized by the accelerated IT infrastructure that is more likely to be focused- at least initially- on an expanding range of learning and inference Generative AI models. Over the longer-term, they added, there may be some degree of data centre resource optimization to allow for a potentially greater mix of accelerated computing relative to general-purpose computing. Citi research analysts also said the acceleration of high-performance computing adoption could be a potential positive in the mosaic of data centre demand, but nonetheless it’s a trend that is hard to quantify. They point out that this is not dissimilar to how other technology themes have influenced data centre demand, For example, digital transformation and adoption of hybrid-cloud architectures by enterprise customers are helping demand for the broader data centre ecosystem. But they add that from top-down perspective, these trends are difficult to quantify including for more on that see the full report. For more information on this subject, please see US Telecommunications Infrastructure - AI Implications for Data Centre Stocks (31 May) Citi Global Insights (CGI) is Citi’s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click here.

The world&rsquo;s data centres are on the verge of a decade long upgrade cycle as they retool and adopt high performance computing. Who&rsquo;s going to do most of the work? Probably generative AI.
That&rsquo;s according to NVIDIA CEO, Jensen Huan.&nbsp;
&ldquo;You&rsquo;re seeing the beginning of call it a 10-year transition to basically recycle or reclaim the world's data centres and build it out as accelerated computing,&rdquo; Mr Huan said on a recent earnings call. &ldquo;You&rsquo;ll have a pretty dramatic shift in the spend of the data centre from traditional computing, and to accelerated computing with smart NICs, smart switches, of course, GPUs, and &ndash; and the workload is going to be predominantly generative AI,&rdquo; he added.&nbsp;
Citi research analysts say an acceleration of AI workloads and related IT infrastructure deployments are likely to be additive to the demand for data centre deployments for at least the first few years of this cycle, while the demand for power density could trend higher.&nbsp;
<a target="_blank" name="_Hlk138327599" data-link-source="tiny"></a>AMD recently hosted its Data Centre &amp; AI day at which it sized the AI GPU data centre opportunity at $150bn by 2027. That&rsquo;s up from $30bn in 2023.
Citi research analysts said they don&rsquo;t expect existing general computing workloads to initially be cannibalized by the accelerated IT infrastructure that is more likely to be focused- at least initially- on an expanding range of learning and inference Generative AI models.
Over the longer-term, they added, there may be some degree of data centre resource optimization to allow for a potentially greater mix of accelerated computing relative to general-purpose computing.
Citi research analysts also said the acceleration of high-performance computing adoption could be a potential positive in the mosaic of data centre demand, but nonetheless it&rsquo;s a trend that is hard to quantify. They point out that this is not dissimilar to how other technology themes have influenced data centre demand,
For example, digital transformation and adoption of hybrid-cloud architectures by enterprise customers are helping demand for the broader data centre ecosystem. But they add that from top-down perspective, these trends are difficult to quantify including for more on that see the full report.
For more information on this subject, please see <a href="https://www.citivelocity.com/cv2" target="_blank" rel="noopener" data-link-source="tiny">US Telecommunications Infrastructure - AI Implications for Data Centre Stocks</a> (31 May)
Citi Global Insights (CGI) is Citi&rsquo;s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click <a href="https://ir.citi.com/6A3IURUaezPxFLppsgdBkqidjLaLn558JwHISYaDZcTfE9XMRB1isDDDVorqrxpR%2fTnEi4RUCl8%3d" target="_blank" rel="noopener" data-link-source="tiny">here</a>.
&nbsp;
&nbsp;

A recent report from Citi Research’s Michael Rollins looks at how data centres might be about to embrace the generative AI revolution 

AI is Coming to a Data Centre Near You 

Administration accounts for roughly a quarter of all health spending. It also contributes significantly to clinician burnout. In the third report in a series, Smart Thinking on AI in Healthcare, Adam Spielman of Citi Global Insights takes a closer look at the how AI-driven automation could save perhaps 25%-30% of admin costs, benefitting staff, improving the patient experiences, and saving time and money. Healthcare Industry - Fragmentation and Consolidation © 2023 Citigroup Inc. No redistribution without Citigroup’s written permission. Source: Deloitte Consulting, Citi Global Insights Faster information flows among the various parts of the healthcare system are likely to mean they will become more integrated, focusing more and more on the benefits for the consumer, who should be at the heart of everything. A number of companies – large and small – are debuting products that offer ambient administration, in which a smart speaker listens to conversations between patients and clinicians, and drafts clinical notes. As these systems improve, doctors should be able to spend more time helping their patients and less time on paperwork. Health administration is important because: (1) administration is a large part of healthcare that’s often underappreciated by outsiders; and (2) it’s also very inefficient: Excessive cost: Very roughly ¼ of all spending on healthcare in the U.S. is on administrative tasks, but automation could save perhaps 25%-30% of this. Burden on clinicians: Burnout is an increasing problem in many health systems globally, including in the U.S., and more than 90% of clinicians say excessive admin is contributing to burnout. Industry fragmentation: Friction in the flow of information means the healthcare system is currently split into distinct entities, e.g., the providers, payers, and government, with little integration among them, and mis-aligned incentives. More automation means more integration AI is already starting to help automate a great deal, and the report says the advent of really good understanding of ordinary language will accelerate this. “AI presents a large opportunity to help reduce bottlenecks and automate several areas of health admin,” says Elliot Jenks, a managing director at Citi’s investment bank, responsible for health services. “That means you could make a lot of processes much more efficient and lower cost.” And in the future, faster information flows among the various parts of the healthcare system will mean they will become more integrated, focusing more and more on the benefits for the consumer. A number of companies are debuting products that offer ambient administration, in which a smart speaker listens in to the conversation between patient and clinician, and provides a draft of clinical notes for the physician to approve. Various estimates suggest that admin accounts for anywhere between 15% and 35% of all healthcare spend in the United States. One recent McKinsey paper put the cost at $950 billion for 2019, 25% of the total healthcare spend that year ($3.8 trillion). Several companies are already taking note and getting involved. These include Alphabet and Microsoft, as well as several start-ups. For more details on how these companies are approaching the space, and if you’re a Velocity subscriber, please see the full report, published on 25 April 2023, here. Smart Thinking on AI in Healthcare: Part 3 – Health Administration - AI is likely to automate many tasks, relieving staff, reducing costs, and speeding clinical care Please also see our previous reports here: Smart Thinking on AI in Healthcare: Part 2 – Medical Devices - AI is increasingly disrupting radiology, published on 6 April 2023 Smart Thinking on AI in Health: Part 1 – Overview - What’s happened in AI in health, and what’s coming next, published on 28 March 2023 Citi Global Insights (CGI) is Citi’s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click here.

Administration accounts for roughly a quarter of all health spending. It also contributes significantly to clinician burnout.
In the third report in a series, Smart Thinking on AI in Healthcare, Adam Spielman of Citi Global Insights takes a closer look at the how AI-driven automation could save perhaps 25%-30% of admin costs, benefitting staff, improving the patient experiences, and saving time and money.
Healthcare Industry - Fragmentation and Consolidation
<img src="/rcs/v1/media/citigpa/akpublic/storage/retrieveMediaFile/64ad78426161f864e6be9696.png" width="782" height="456" />
&copy; 2023 Citigroup Inc. No redistribution without Citigroup&rsquo;s written permission.
Source: Deloitte Consulting, Citi Global Insights
&nbsp;
Faster information flows among the various parts of the healthcare system are likely to mean they will become more integrated, focusing more and more on the benefits for the consumer, who should be at the heart of everything.
A number of companies &ndash; large and small &ndash; are debuting products that offer ambient administration, in which a smart speaker listens to conversations between patients and clinicians, and drafts clinical notes. As these systems improve, doctors should be able to spend more time helping their patients and less time on paperwork.&nbsp;
Health administration is important because: (1) administration is a large part of healthcare that&rsquo;s often underappreciated by outsiders; and (2) it&rsquo;s also very inefficient:
<ul>
<li>Excessive cost: Very roughly &frac14; of all spending on healthcare in the U.S. is on administrative tasks, but automation could save perhaps 25%-30% of this.</li>
</ul>
<ul>
<li>Burden on clinicians: Burnout is an increasing problem in many health systems globally, including in the U.S., and more than 90% of clinicians say excessive admin is contributing to burnout.</li>
</ul>
<ul>
<li>Industry fragmentation: Friction in the flow of information means the healthcare system is currently split into distinct entities, e.g., the providers, payers, and government, with little integration among them, and mis-aligned incentives.&nbsp;</li>
</ul>
&nbsp;
More automation means more integration
AI is already starting to help automate a great deal, and the report says the advent of really good understanding of ordinary language will accelerate this.
&ldquo;AI presents a large opportunity to help reduce bottlenecks and automate several areas of health admin,&rdquo; says Elliot Jenks, a managing director at Citi&rsquo;s investment bank, responsible for health services. &ldquo;That means you could make a lot of processes much more efficient and lower cost.&rdquo;
And in the future, faster information flows among the various parts of the healthcare system will mean they will become more integrated, focusing more and more on the benefits for the consumer.
A number of companies are debuting products that offer ambient administration, in which a smart speaker listens in to the conversation between patient and clinician, and provides a draft of clinical notes for the physician to approve.
Various estimates suggest that admin accounts for anywhere between 15% and 35% of all healthcare spend in the United States. One recent McKinsey paper put the cost at $950 billion for 2019, 25% of the total healthcare spend that year ($3.8 trillion).
Several companies are already taking note and getting involved. These include Alphabet and Microsoft, as well as several start-ups.
For more details on how these companies are approaching the space, and if you&rsquo;re a Velocity subscriber, please see the full report, published on 25 April 2023, here. <a href="https://www.citivelocity.com/t/r/eppublic/2fwO9" target="_blank" rel="noopener" data-link-source="tiny">Smart Thinking on AI in Healthcare: Part 3 &ndash; Health Administration - AI is likely to automate many tasks, relieving staff, reducing costs, and speeding clinical care</a>
Please also see our previous reports here:
<a href="https://www.citivelocity.com/t/r/eppublic/2evdO" target="_blank" rel="noopener" data-link-source="tiny">Smart Thinking on AI in Healthcare: Part 2 &ndash; Medical Devices - AI is increasingly disrupting radiology</a>, published on 6 April 2023
<a href="https://www.citivelocity.com/t/r/eppublic/2eHkz" target="_blank" rel="noopener" data-link-source="tiny">Smart Thinking on AI in Health: Part 1 &ndash; Overview - What&rsquo;s happened in AI in health, and what&rsquo;s coming next</a>, published on 28 March 2023
Citi Global Insights (CGI) is Citi&rsquo;s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click <a href="https://ir.citi.com/6A3IURUaezPxFLppsgdBkqidjLaLn558JwHISYaDZcTfE9XMRB1isDDDVorqrxpR%2fTnEi4RUCl8%3d" target="_blank" rel="noopener" data-link-source="tiny">here</a>.

A recent report by Adam Spielman of Citi Global Insights looks at the heavy burden of healthcare administration costs and how AI might help ease the pain. 

Healthcare Admin Costs: How AI Can Ease the Pain 

Adam Spielman explains how healthcare could be improved – for consumers, clinicians and providers – by using AI to improve administration.