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Through algorithms and artificial intelligence (AI), objects and digital services now demonstrate new skills they did not have before, right up to replacing human activity through pre-programming or by making their own decisions. As part of the internet of things, AI applications are already widely used today, for example in language processing, image recognition and the tracking and processing of data.
This policy brief illustrates the potential negative and positive impacts of AI and reviews related policy strategies adopted by the UK, US, EU, as well as Canada and China. Based on an ethical approach that considers the role of AI from a democratic perspective and considering the public interest, the authors make policy recommendations that help to strengthen the positive impact of AI and to mitigate its negative consequences.
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Online advertising will soon form the largest share of global advertisement revenues. Google and Facebook netted profits of US $29 billion in 2016. While these two giants control more than 66% of all online advertising revenues complex legal company structures have minimised their tax liabilities. This extended policy report considers where they should be taxed and where the value of their activities is actually created. It argues that tax paid by those platforms should be levied in the country where platform users are located when they click on or view an advertisement. Furthermore, the report examines the practical steps needed to ensure transparent accounting of taxed transactions in order to avoid long term negative effects for media and democracy.
Considering counter-arguments the author makes the case for an online advertising tax alongside a public service Internet strategy that could support other viable platforms and counter the dangers of duopoly or oligopoly and the high risks of financial bubbles in a world where advertising is the Internet's dominant business model.
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