AI governance in the public sector: Three tales from the frontiers of automated decision-making in democratic settings

The rush to understand new socio-economic contexts created by the wide adoption of AI is justified by its far-ranging consequences, spanning almost every walk of life. Yet, the public sector's predicament is a tragic double bind: its obligations to protect citizens from potential algorithmic harms are at odds with the temptation to increase its own efficiency - or in other words - to govern algorithms, while governing by algorithms. Whether such dual role is even possible, has been a matter of debate, the challenge stemming from algorithms' intrinsic properties, that make them distinct from other digital solutions, long embraced by the governments, create externalities that rule-based programming lacks. As the pressures to deploy automated decision making systems in the public sector become prevalent, this paper aims to examine how the use of AI in the public sector in relation to existing data governance regimes and national regulatory practices can be intensifying existing power asymmetries. To this end, investigating the legal and policy instruments associated with the use of AI for strenghtening the immigration process control system in Canada; “optimising” the employment services” in Poland, and personalising the digital service experience in Finland, the paper advocates for the need of a common framework to evaluate the potential impact of the use of AI in the public sector. In this regard, it discusses the specific effects of automated decision support systems on public services and the growing expectations for governments to play a more prevalent role in the digital society and to ensure that the potential of technology is harnessed, while negative effects are controlled and possibly avoided. This is of particular importance in light of the current COVID-19 emergency crisis where AI and the underpinning regulatory framework of data ecosystems, have become crucial policy issues as more and more innovations are based on large scale data collections from digital devices, and the real-time accessibility of information and services, contact and relationships between institutions and citizens could strengthen – or undermine - trust in governance systems and democracy.     

The Impact of Wage‐Setting Institutions on the Incidence of Public Employment in the OECD: 1960–1998

Using data on seventeen Organization for Economic Cooperation and Development (OECD) countries for 1960–1998, this paper studies the impact of unions on public employment incidence, using macro‐ and microdata. Macrodata show that greater coverage by centralized collective bargaining institutions raises the public employment share, controlling for country effects and country‐specific trends. Microdata show that this effect is more positive for outsiders: women, and younger and older men. Thus, government jobs may in effect partially counteract the employment problems these groups face in highly unionized societies.     

Mind the gender gap: Inequalities in the emergent professions of artificial intelligence (AI) and data science

The emergence of new prestigious professions in data science and artificial intelligence (AI) provide a rare opportunity to explore the gendered dynamics of technical careers as they are being formed. In this paper, we contribute to the literature on gender inequality in digital work by curating and analysing a unique cross-country data set. We use innovative data science methodology to investigate the nature of work and skills in these under-researched fields. Our research finds persistent disparities in jobs, qualifications, seniority, industry, attrition and even self-confidence in these fields. We identify structural inequality in data and AI, with career trajectories of professionals differentiated by gender, reflecting the broader history of computing. Our work is original in illuminating gendering processes within elite high-tech jobs as they are being configured. Paying attention to these nascent fields is crucial if we are to ensure that women take their rightful place at forefront of technological innovation.     

The Diffusion of Employment Practices of US‐Based Multinationals in Europe. A Case Study Comparison of British‐ and Italian‐Based Subsidiaries

A number of approaches to the diffusion of employment practices within American‐based multinational companies (MNCs) can be discerned. In this paper, two theoretical approaches are contrasted: a ‘country‐of‐origin’ approach in which the influence of the home country is mediated by national features of host‐country institutional environments; and a power resources or strategic choice approach that emphasizes the autonomy of local actors within MNCs and their capacity to shape the diffusion of employment practices. Using a case study comparison of three Italian and two British‐based subsidiaries owned by an American MNC, the paper examines factors and patterns of diffusion of employment practices from the parent company to the local subsidiaries. The argument is put forward that company‐specific features enhance the strategic power of the subsidiary firm within the wider corporation, thus complementing institutional host‐country characteristics in shaping the diffusion of employment practices abroad. Hence, organizational as well as institutional effects contribute to creating the space that the various actors across host countries possess for protecting their interests and for exercising power on the terms and conditions of the diffusion.     

Institutional and resource configurations associated with different SME foreign market entry modes

This study explores the different configurations of internal and externally sourced resources utilized by SMEs, as well as host and home country institutional influences (hereafter abbreviated to ‘internal and external resources’, and ‘host and home country institutions’, respectively) across different foreign market entry modes in a B2B setting. Specifically, this research illustrates the different relative representations of internal vs external resources and host vs home institutions associated with different entry modes, including non-investment/contractual and early-stage investment modes. The different configurations resulting from our study are tentatively explained in the context of prevailing theoretical perspectives, namely, the resource-based view, institutional theory, and SME internationalization. Our research extends the existing literature on SME internationalization by identifying that different resource-institutional configurations are associated with different foreign market entry modes.     

Do regions matter? An integrated institutional and semiglobalization perspective on the internationalization of MNEs

Traditional research suggests a relationship between country‐level institutions and the location choices of MNEs. However, more recent theory suggests MNEs also focus on regions (semiglobalization). Therefore, this study examines institutional effects in the context of semiglobalization by considering the influences of three formal institutions (i.e., regulatory control, political democracy, capital investments) of countries and geographic regions on MNEs' location choices of internationalization. We use a sample of Japanese MNEs operating in 45 countries within eight regions. The results show that their degree of internationalization into a country is influenced by both country and regional institutional environments. Additionally, a semiglobalization perspective provides better explanatory power than does the country‐level perspective. These results present a new perspective on how MNEs consider institutional environments in their international strategy. Copyright © 2013 John Wiley & Sons, Ltd.     

Societal and ethical impacts of artificial intelligence: Critical notes on European policy frameworks

This paper offers a critical review on conditions and impacts of AI/ML in society, with a dedicated overview of the European AI policy framework. Through the analysis of policy papers produced by European institutions, European national governments and other organisations situated between research and policy-making, we bring an overarching outlook of key ethical and societal issues currently under discussion at the intersection of European policy agendas and recent literature on the topic. Our findings show that 21 analysed documents look both at individual and societal impacts, with their understanding generally aligned in calls for more responsibility, accountability, transparency, safety or trust. Furthermore, our findings also point to the necessity of more integrated approaches between governments, industry and academia stakeholders, and above all, to the need of applied multidisciplinary frameworks, supported by both anticipatory outlooks and public engagement exercises able to tackle the often excessive technicality of the debate.     

The Impact of Private Equity on Employment: The Consequences of Fund Country of Origin—New Evidence from France

This article explores the country of origin effects of private equity investment on employment in France. Using propensity score matching methodology applied to establishment‐level survey data, we find that foreign investors are significantly more likely to induce job shedding and employment insecurity than are French investors. As suggested by the literature on comparative capitalism, national differences may persist in conjunction with commonalities and trends in global capitalism.     

The Diffusion of Calculative and Collaborative HRM Practices in European Firms

The aim of this paper is to trace and explain variations in calculative and collaborative human resource management (HRM) practices between companies and across national borders. Variations and similarities are explained in terms of the convergence and divergence of HRM practices determined by national institutions, and the increasing influence of multinational companies (MNCs). We explore the diffusion of HRM practices in Europe over time, using data sets from two surveys conducted in several European countries in 1995 and 2000. We use institutional explanations for the development of three selected bundles of HRM practices: individual, calculative performance‐oriented practices; collective incentive schemes for the alignment of interests; and collaborative practices that seek to enhance the commitment of employees. We found substantial effects of country‐specific institutions and of the country of origin of MNCs, which clearly support the institutional duality thesis. Foreign‐owned MNCs, especially those that are US‐based, appear to moderate country‐specific institutional effects on the diffusion of the three HRM bundles.     

Should humans work?

Should humans work? A simple question at a time when the advent of AI, automation and robotics claims a privileged position in the future of work. The question is perplexing and confusing however once we enquire into the meaning of technology and work as such: some claim that human jobs and well-being might be threatened by technological advances while others predict an increase in high skilled demand.In short, we claim that standard debates obfuscate the question. That is, while animating the debate, standard arguments are instrumental to avoiding confrontation with the fundamental relation between humans, technology and work, namely, our position regarding what to do with technology and work, i.e. humans are “absent” in an “advancing” environment. We propose that focusing debates on the advantages and disadvantages of the development of advanced technology with the potential to do any human task does not necessarily clarify the situation, but rather unveils the obscurity of our relationship with technology by illuminating the lack of clarification.     

Non‐Standard “Contingent” Employment and Job Satisfaction: A Panel Data Analysis

Contingent forms of employment are usually associated with low‐quality jobs and, by inference, jobs that workers find relatively unsatisfying. This assumption is tested using data from a representative household panel survey covering a country (Australia) with a high incidence of nonstandard employment. Results from the estimation of ordered logit regression models reveal that among males, both casual employees and labor‐hire (agency) workers (but not fixed‐term contract workers) report noticeably lower levels of job satisfaction, though this association diminishes with job tenure. Negative effects for women are mainly restricted to labor‐hire workers.     

Governance,ownership structure,and performance of IPO firms: the impact of different types of private equity investors and institutional environments

This paper examines performance effects of ownership concentration and two types of private equity investors (venture capitalists and business angels) in firms that have recently undergone an initial public offering (IPO) in the United Kingdom and France. We expand and contextualize nascent understanding of multiple agency theory by examining heterogeneity of private equity investors and by suggesting that multiple agency relationships are affected by different institutional contexts. We employ a unique, hand‐collected dataset of 224 matched IPOs (112 in each country). Controlling for the endogeneity of private equity investors' retained share ownership, we find support for the agency theory argument that concentrated ownership improves IPOs' performance. The research also shows that the two types of private equity investors have a differential impact on performance, and the legal institutions in a given country moderate this impact. Copyright © 2009 John Wiley & Sons, Ltd.     

The AI techno-economic complex System: Worldwide landscape,thematic subdomains and technological collaborations

Artificial intelligence (AI) is playing a major role in the new paradigm shift occurring across the technological landscape. After a series of alternate seasons starting in the 60s, AI is now experiencing a new spring. Nevertheless, although it is spreading throughout our economies and societies in multiple ways, the absence of standardised classifications prevents us from obtaining a measure of its pervasiveness. In addition, AI cannot be identified as part of a specific sector, but rather as a transversal technology because the fields in which it is applied do not have precise boundaries. In this work, we address the need for a deeper understanding of this complex phenomenon by investigating economic agents’ involvement in industrial activities aimed to supply AI-related goods and services, and AI-related R&D processes in the form of patents and publications. In order to conduct this extensive analysis, we use a complex systems approach through the agent-artifact space model, which identifies the core dimensions that should be considered. Therefore, by considering the geographic location of the involved agents and their organisation types (i.e., firms, governmental institutions, and research institutes), we (i) provide an overview of the worldwide presence of agents, (ii) investigate the patterns in which AI technological subdomains subsist and scatter in different parts of the system, and (iii) reveal the size, composition, and topology of the AI R&D collaboration network. Based on a unique data collection of multiple micro-based data sources and supported by a methodological framework for the analysis of techno-economic segments (TES), we capture the state of AI in the worldwide landscape in the period 2009–2018. As expected, we find that major roles are played by the US, China, and the EU28. Nevertheless, by measuring the system, we unveil elements that provide new, crucial information to support more conscious discussions in the process of policy design and implementation.     

Technological and economic long waves and their implications for employment

The world economy is currently stuck in a 'long wave' downswing, due largely to the mismatch of a new technological 'style' with established institutions. The article sketches the effects on the level and pattern of employment and discusses the reforms which will be needed to escape from the downswing.     

The nature of the Artificially Intelligent Firm - An economic investigation into changes that AI brings to the firm

With the arrival of Artificial Intelligence (AI), the nature of the firm is changing and economic theory can provide guidance to businesses as well as to politics when formulating adequate strategies for this unknown terrain. By interpreting AI as a new type of agent within the firm, the theory of the firm can serve as a lingua franca to connect computer sciences and social sciences when dealing with the interdisciplinary phenomenon of AI. To achieve this, this paper adopts the perspective of the economic theory of the firm to systematically explore the changes that AI brings to the institution of the firm. In total, five interrelated propositions are discussed that are rooted in the traditional theory but trace the nature of the Artificially Intelligent Firm: AI intensifies the effects of economic rationality on the firm (1). AI introduces a new type of information asymmetry (2). AI can perforate the boundaries of the firm (3). AI can create triangular agency relationships (4) and AI has the potential to remove traditional limits of integration (5).     

Spatial ability learning through educational robotics

Several authors insist on the importance of students’ acquisition of spatial abilities and visualization in order to have academic success in areas such as science, technology or engineering. This paper proposes to discuss and analyse the use of educational robotics to develop spatial abilities in 12 year old students. First of all, a course to introduce robotics to 6th grade primary school students was designed. The key intention was to prepare practical and motivating sessions in order to foster the students’ involvement in hands-on learning. Hence, during the sessions of the course, challenges were provided for the students, in order to develop their capabilities as proficient problem solvers. The teacher assisted and guided the students, and the students were encouraged to solve the problems by themselves, working in 3-members teams. The main goal of this paper is to discuss and analyse the potential usefulness of educational robotics to develop spatial abilities. To carry out the analysis, students were randomly divided into an experimental group (EG), which participated in the robotics course, and a control group (CG), which did not take part in the robotics course. The extensive existing literature for spatial ability evaluation was analysed and reviewed and a pre-test and a post-test were prepared for use in the research study. Initially, the spatial ability of both EG and CG students was assessed with the pre-test. Then, after finishing the robotics course, the same sets of students were tested with the post-test. An extensive analysis of the results is provided in the paper. Results show that the positive change in spatial ability of the participants in the robotics course (EG) was greater than change evident in the students who did not join the course (CG). The improvement was statistically significant. The results also show that the overall performance of the students depends on the instruments used to evaluate their spatial abilities. Hence, this study manifests clearly the importance of the selection of those instruments.     

Work‐Related Training and the Probability of Transitioning from Non‐Permanent to Permanent Employment

It is widely believed that work‐related training increases a worker's probability of moving up the job‐quality ladder. This is usually couched in terms of effects on wages, but it has also been argued that training increases the probability of moving from non‐permanent forms of employment to more permanent employment. This hypothesis is tested using nationally representative panel data for Australia, a country where the incidence of non‐permanent employment, and especially casual employment, is high by international standards. While a positive association between participation in work‐related training and the subsequent probability of moving from either casual or fixed‐term contract employment to permanent employment is observed among men, this is shown to be driven not by a causal impact of training on transitions but by differences between those who do and do not receive training, that is selection bias.     

Artificial Intelligence Applications in Telecommunications and other network industries

Artificial intelligence applications in network industries have the potential to reduce network roll-out and operating costs, improve performance, enhance customer service, and support the development and introduction of new services. This paper identifies and analyzes the range of AI applications already in place and those expected to be in place in the near future. After analyzing the applications found in the literature, we have conducted interviews with senior executives responsible for AI in telecommunications, electricity, gas and water companies headquartered in North America and Europe, as well as with suppliers incorporating AI into their equipment. These interviews have provided information on which AI applications are actually being used in these network industries and which are expected to be implemented in the future. While some of these AI applications, like predictive maintenance, have already been implemented today by most operators, more complex applications, such as traffic management AIs for 5G, are being considered by only a few large operators. Finally, the paper explores the consequences of AI for regulation. At the least, regulators will need to understand AI in order to determine if AI applications raise regulatory concerns. At this point, however, as AI becomes increasingly integrated into network operations, regulatory issues are only beginning to emerge.     

Innovation ecosystems theory revisited: The case of artificial intelligence in China

Beyond the mainstream discussion on the key role of China in the global AI landscape, the knowledge about the real performance and future perspectives of the AI ecosystem in China is still limited. This paper evaluates the status and prospects of China's AI innovation ecosystem by developing a Triple Helix framework particularized for this case. Based on an in-depth qualitative study and on interviews with experts, the analysis section summarizes the way in which the AI innovation ecosystem in China is being built, which are the key features of the three spheres of the Triple Helix -governments, industry and academic/research institutions-as well as the dynamic context of the ecosystem through the identification of main aspects related to the flows of skills, knowledge and funding and the interactions among them. Using this approach, the discussion section illustrates the specificities of the AI innovation ecosystem in China, its strengths and its gaps, and which are its prospects. Overall, this revisited ecosystem approach permits the authors to address the complexity of emerging environments of innovation to draw meaningful conclusions which are not possible with mere observation. The results show how a favourable context, the broad adoption rate and the competition for talent and capital among regional-specialized clusters are boosting the advance of AI in China, mainly in the business to customer arena. Finally, the paper highlights the challenges ahead in the current implementation of the ecosystem that will largely determine the potential global leadership of China in this domain.     

Global connectivity and the evolution of industrial clusters: From tires to polymers in Northeast Ohio

Industrial clusters are a critical component of the competitive viability of economies around the world. However, clusters are not static but evolve in response to technology and competition. This process has garnered interest from scholars and from practitioners, with the focus primarily on local linkages and networks. Although global knowledge ties have the potential to fuel innovation, scant attention has been given to global knowledge connectivity in the context of cluster evolution. We analyze a comprehensive 30-year patent dataset (1975–2005) associated with the Akron industrial cluster in Northeast Ohio. The results also show that innovation in the cluster has survived in spite of a long-term decline in manufacturing activity and employment. The survival of innovation in the Akron cluster is driven by increasing specialization at the local level with an emphasis on technologies rather than products and growing connectedness to global innovation systems. A key implication of our study is the importance of anchor tenant multinational enterprises and research institutions in ensuring the persistence of local innovation through two key processes (a) orchestrating knowledge networks; and (b) spawning startup activity. We provide support for recent work in industrial marketing suggesting that network evolution has both deterministic and strategic aspects.