Decoding the Impact of Brexit on Artificial Intelligenceby Astha Oriel September 9, 2020
With BREXIT, a huge opportunity is provided to the artificial intelligence market of UK for flourishing.
With only five weeks left before the United Kingdom and European Union can plan out a strategy that would ensure free trade, the changes with BREXIT are inevitable. The UK is already in a transition period until December 31, 2020, with a looming free trade deal, that will be decision-maker regarding the fate of trade relations between UK and EU. However, with all the unprecedented changes that are involved with BREXIT, technology has been observed as a blooming future. Experts believe that despite the many implications and reformations associated with BREXIT, AI has the potential for revolutionising industry in the near future.
Understanding BREXIT and its implications
The BREXIT is an abbreviation for Britains Exit from European Union. A referendum was held on June 2016, for the citizens of UK to choose, whether they want to stay with EU or not. EU is an organization of European countries that allows free trade, free travel, and immigration between European countries. The UK was a part of the European Union since 1974 before it exited from Europe on January 31st, 2020, with a withdrawal agreement in its tail.
One of the major implications that has been much talked about, during the entire process of BREXIT is the trade deal, that would observe the trading relationship between both EU and UK. The European Union is governed by a Single Market, which allows the same services and rules to be shared for the products offered by different countries. The Customs Union of the European Union offers an agreement between European Countries for tariff free trade with each other. As UK was part of the European Union, it was entitled to all the regulations and free trade for European countries.
But with BREXIT, a new trading regulation is being planned out, between EU and UK, which would involve custom tariffs, border checks, and UK’s industry to the European Market. If a no trade deal is reached before the deadline, then UK would be accountable to pay tariffs and taxes for every good traded in the European market, thus making the goods expensive. A border check of the goods would mean long delay at the ports.
Digitizing the Supply and Demand Chain
Like mentioned earlier, one of the major challenges that UK industry will face is higher tariffs and border check that will have impact on businesses, who have suppliers and buyers at both ends. Experts say that this process could be laborious but with the application of artificial intelligence in the supply and demand chain, the suppliers would be able to keep track on the goods kept at the port.
Digitizing the supply and demand chain would also mean that the businesses in both the ends, can have seamless trade without any interruption of border checks. With many businesses now standing at the verge of losing frictionless trade and paying higher tariffs, the scope of AI is extended in determining a scheme, that would not require the increased border controls.
By the application of AI, the small retail businesses in both the ends would have maximum opportunity for reaping the benefits
Opportunities for Legal Tech companies
Another buzz that has been swirling around with BREXIT, is the disposition of thousands immigrants in UK, as a result of their work engagement. As most of the people are still unaware regarding the regulations implied on the residents of UK and Europe, legal Tech start-ups can flourish by providing consultation services to the distressed citizens who will be most likely to be affected by BREXIT. This will include the businesses that are at a pedestal with BREXIT.
As BREXIT also involves paperwork of many businesses, an opportunity is presented for the, the legal tech start-ups to utilize the algorithms of AI for analyzing the information provided by customers, segregating them as qualified information and quality information and then identifying businesses which would require immediate assistance. Thus legal tech start-ups have a positive outlook if a planned out strategy is carried out, with artificial intelligence.
Challenges of EU Strategies
In it’s white Paper report of artificial Intelligence, European Union wrote down strategies that would enhance AI, in Europe. The report is comprehensive and allows the application of AI in various sectors, but with its unclear approach towards AI, as high risk, experts say that this has a potential of hindering diversity and experimentation.
As technology is all about innovation, defining risks is a challenge. This also means if these challenges are taken into account, it would mean ignorance of possible innovations. With EU’s this approach, a futuristic roadblock that has been observed by the experts, is that many entrepreneurs who are either planning or are already diving into applying AI, will be apprehensive in applying this technology.
Another hindrance that has been observed by the experts is the cost-effectiveness due to reassessing the compliance of an AI model when it is updated. With this strategy, the investment would be huge, especially if the businesses are updating their products on a regular basis.
It has been observed that these issues, would put AI into higher standards, and with most of the companies in EU, already slow in productivity improvements, the cautiousness while implementing these technologies would be very much evident.
Thus, the EU needs to redefine its strategy, identify the boundaries and scale up its approach, to reap maximum benefits with AI.
Flourishing UK’s AI market
The UK is the home for many European AI leaders. Experts believe that with BREXIT, UK will be provided with an opportunity to scale up their AI projects. With the computer science as the second fastest growing technology, experts believe that it will be an opportunity for start-ups to dive into AI. As UK is the leader amongst European countries for AI, thus surpassing France and Germany, the scope of AI in UK is high.