Experts have called for improved governance to balance out the potential risks of artificial intelligence (AI), while acknowledging it can bring multiple benefits to industries and individuals.

Their remarks came at a recent forum in Shenzhen, co-organized by China Development Institute and Shenzhen Ma Hong Foundation for the Economic Improvement Research.

Technological advancement will create “a series of shocks” to the economy, manifesting through three layers, said Fan Gang, former president of Shenzhen-based think tank China Development Institute.

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The first is internal shocks inside industries, which will result in the demise of some traditional enterprises and the emergence of some new ones. The second is the restructuring of industrial structure, in which traditional industries will be replaced by emerging ones. The third one lies in the societal aspect, with the distribution of income expected to change, Fan warned.

While noting that AI will bring inclusive benefits to businesses and people, Xue Lan, dean of institute for AI International Governance at Tsinghua University, also cautioned against three risks associated with the advanced technology.

“The first is the risk of malicious misuse, where individuals utilize AI technology for illegal activities, potentially causing widespread harm. The second is linked to inherent technical flaws, such as AI hallucinations, which can lead to biased decision-making. Finally, there is the risk of systemic social issues as large-scale application of AI will profoundly affect employment structures and income distribution,” he pointed out.

Shan Yin, senior engineer of China Academy of Information and Communications Technology, said every technological leap — from telegraphs, to telephones to the internet — brings governance challenges.

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The rapid development of AI signifies the need for strategic governance to support new technologies and business models, he pointed out. “Therefore, all parties should adhere to compliance standards and enhance their security capabilities, while at the same time embracing the principle of ‘technology for good’ and collaborating across industry, academia and research to achieve high-quality development of AI.”

Contact the writer at sally@chinadailyhk.com