Seoul Summit for Responsible Military AI, Palantir Joining S&P 500, and Controlling AI Is Not Like Nuclear Weapons

This week, I participated in the REAIM Summit in Seoul. For two days, political and military leaders, diplomats, tech companies, lawyers, and other stakeholders discussed how to take action towards ensuring the responsible use of AI in the military domain.

In this newsletter, I am covering the overview of the summit. A more detailed review will follow separately.

Palantir is joining the S&P 500. Upon the announcement, the stocks jumped by 7%.

But first, AI is often being compared with nuclear weapons, but regulating AI is very different. While the atomic bomb is a weapon in itself, AI is an enabling technology, with large dual use, and mainly developed by private companies:

The Big Story

Seoul Summit for Responsible AI in Military Domain

This week, political and military leaders, diplomats, tech companies, lawyers, and other stakeholders gathered in Seoul to discuss the government of responsible AI in the military domain. The Responsible AI in Military Domain (REAIM) Summit was hosted by South Korea and cohosted by the Netherlands, Singapore, Kenya, and the UK.

In the opening speech, the South Korean Minister of Foreign Affairs, Cho Tae Yul, set the stage:

“Faced with profound uncertainties, both technological and geopolitical, it is all the more imperative that we set rules and governance for responsible AI.”

96 countries sent government representatives to the summit that followed the first REAIM Summit in Hague last year. During two days, discussions took place in 3 plenary sessions, 62 breakout discussions, and one ministerial round table.

The focus was on clearly finding clear actions and navigating the complexity of governing not the weapon itself but the technology supporting the warfare, as well as the dual use and accessibility.

*Source: Ministry of Foreign Affairs, Republic of Korea*

The summit resulted in a blueprint for action for AI governance that is a continuation of a similar document finished in Hague last year but more focused on action. The document is still legally nonbinding. So far, 60 nations have endorsed the blueprint.

Minster Cho Tae Yul closed the summit by pointing out that AI can cause unintended escalation during conflict, failures resulting from algorithmic or systemic bias, and potentially devasting misalignment with human intent at the same time as it can enhance operational precision, minimize harm to civilians, and even contribute to more effective peacekeeping operations.

“This duality, AI is both an enabler of security and a potential disruptor underscores the complexity of building the normative and institutional framework for governing AI in the military domain. Yet, the undeniable truth remains: it is not the technology but our will and choices that will determine the future. We are responsible for our future,” he concluded.

Palantir Joining S&P 500

Palantir’s stocks jumped about 7% in extended trading on Friday after S&P Global announced that the company would join the index, replacing American Airlines. Palantir will be added to the S&P 500 index before the market open on September 23 alongside Dell and Erie Indemnity.

Shares of companies added to the S&P 500 often rally after the announcement because fund managers who track the index regularly update their portfolio to mirror the additions.

After operating as a VC-backed startup for more than 15 years, Palantir went public on the New York Stock Exchange in 2020, and in Q4 2022, the company started posting profits. In Q2 this year, Palantir’s net income totalled $ 135.6 million, up from $ 27-8 million in the same period last year.

To join the S&P 500, a company must have reported profit in its latest quarter and have cumulative profit over the four most recent quarters.

Bank of America stated that by joining the S&P 500, Palantir will attract a new wave of investors and long-term capital.

This Week’s Extras

Nato Tries Brat Summer

Nato jumped on the brat summer trend by sharing a post promoting peace on Instagram, using the BRAT generator.

"Summer might be over, but the goal for peace remains," Nato posted followed by a green heart emoji.

Nato has 1.4 million followers on Instagram.

Podcast Recommendation

The episode “The Battle to Control the World’s Most Powerful Technology” by The New York Times is a great overview of the so-called Chip War.

The podcast covers how the US started fearing that American-made technology such as NVIDIA’s chips would help China develop more powerful weapons than their own. The US then started restricting exports and stepped closer to the fine line between business and national security.

In the News

Defence Tech Valley: Ukraine’s First International Defence Tech Investment Summit

Ukraine will host its first international Defence Tech Valley summit in Kyiv on October 3-4, 2024. Organised by the Brave1 defence innovations cluster, the event will bring together investors, government agencies, and military officials to discuss transforming Ukraine into a global defence tech hub. Ukrainian companies will have the opportunity to showcase their innovations to international investors, with a focus on securing funding and establishing partnerships. The summit is expected to strengthen Ukraine’s position in the defence technology market, contributing to its national security and global defence efforts.
Read more at Odessa Journal.

Combating Hate Speech: Lessons From Asia

The United Nations has been actively working to combat online hate speech in South and Southeast Asia through a collaborative initiative involving multiple countries and UN agencies. Key strategies include understanding local contexts, promoting digital literacy, and building resilience against hate speech. Partnerships with governments, civil society, and tech companies have played a critical role in these efforts. The initiative has successfully fostered regional cooperation, with countries sharing best practices to address hate speech and promote social cohesion in the digital space.
Read more at UNSDG.

The Japanese Robot Controversy Lurking In Israel’s Military Supply Chain

FANUC Corporation, a leading Japanese robotics company, has been accused by activists of indirectly supporting Israel's military through its robotic technology. Despite denying direct involvement with Israeli defence companies, activists claim FANUC's robots are used by firms like Elbit Systems in the production of military equipment. This controversy underscores the ethical challenges of dual-use technologies, where civilian products can also be adapted for military purposes. The case has sparked protests, with activists calling for an end to FANUC's ties with Israeli defence firms, even though FANUC insists it complies with export control laws.
Read more at Wired.

GlobalData Analysis Highlights Q2 Growth In Defence, Rising Global Tensions

GlobalData's latest analysis highlights significant growth in the defence sector during Q2 2024, driven by rising global tensions and increased military spending. Major companies like Lockheed Martin, Northrop Grumman, and Rheinmetall are benefiting from heightened demand for advanced technologies and military hardware. Rheinmetall’s production of artillery shells and vehicles has surged, especially due to the ongoing Ukraine conflict. The report anticipates continued growth in sectors such as space systems, cybersecurity, and unmanned technologies, with European markets, particularly NATO member states, showing rapid expansion.
Read more at Airforce Technology.

Regulators Turn To Math To Determine When AI Is Powerful Enough To Be Dangerous

US and California regulators are relying on a mathematical threshold to determine when an AI system becomes too powerful to be safe. The threshold, set at 10 to the 26th floating-point operations per second (flops), is seen as an imperfect but necessary tool to regulate advanced AI systems. Critics argue the metric is arbitrary and could stifle innovation, while supporters say it provides a clear way to identify potentially dangerous AI models. California's legislation adds a financial threshold, requiring AI models costing over $100 million to be reported. The debate reflects broader concerns about AI's role in future warfare and security.
Read more at PBS.

Defence Electronics Industry Research: Market Predicted To Surpass $171.8 Billion By 2024

The global defense electronics market is projected to exceed $171.8 billion by 2024, with growth continuing through 2034. The market's expansion is driven by advancements in Artificial Intelligence (AI) and radar technology, which are enhancing military capabilities such as predictive maintenance and target recognition. The report also highlights the geographical and sectorial growth across airborne, marine, and land platforms, with key players innovating to meet the evolving needs of defense systems. Despite challenges like COVID-19, the market is poised for substantial growth, with numerous investment opportunities in the coming decade.
Read more at Yahoo Finance.