Abstract
Estonia has successfully created a digital society within the past 2 decades. It is best known for its eGovernment achievements, but it is also home for four unicorn star-ups. While the state is aiming to attract tech investments with e-Residency program and has recently started to invest into protecting national IP and safeguarding data from cybercrime by applying blockchain technology and creating its “digital embassy” in Luxembourg, emerging technologies such as and applications of artificial intelligence but also internet of things have posed the question on legal regulation and standardization. The dilemma, however, seems to be that since the new technologies, such artificial intelligence is much more overwhelming phenomenon than e-governance and presumably, before deciding the legal standards, the political and economic strategies that go beyond the e-governance should be set.
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Notes
A document that was much inspired from the EU and US developments in the field, such as the “Bageman report” from 1994, Commission White Paper on Growth, competitiveness, and employment from 1993. See also Tarmo Kalvet. Eesti Infoühiskonna arengud alates 1990. Aastatest. PRAXISe Toimetised Nr 30, August 2007.
The percentage of ID owners is reported to be 99.
Only in very special cases you need to be physically present for re-registering the vehicle.
In 1996 Estonia launched a program called “Tiger’s Leap” with the aim of investing into network infrastructure and hardware.
See for example Kalvet, T. (2007) The Estonian Information Society Developments Since the 1990s, Working Paper No. 29, Praxis Centre for Policy Studies, Tallinn. Drechsler, W., Backhaus, J.G., Burlamaqui, L., Chang, H-J., Kalvet, T., Kattel, R., Kregel, J. and Reinert, E.S. (2006) ‘Creative destruction management in central and eastern Europe: meeting the challenges of the techno-economic paradigm shift’, in Kalvet, T. and Kattel, R. (Eds.): Creative Destruction Management: Meeting the Challenges of the Techno-Economic Paradigm Shift, PRAXIS Centre for Policy Studies, Tallinn. Tiits, M., Kattel, R., Kalvet, T. and Tamm, D. (2008) ‘Catching up, forging ahead or falling behind? central and eastern European development in 1990–2005′, Innovation: The European Journal of Social Science Research, Vol. 21, No. 1, pp.65–85.
For example, in 2009 Estonia was ranked first in the availability of government online services and second in the presence and use of IT in government offices. According to the UN eGovernment surveys conducted during the last 5 years, Estonia has steadily held a position among the top twenty. See the survey report at https://www.unescap.org/sites/default/files/E-Government%20Survey%202018_FINAL.pdf, as well as Dutta, S. and Mia, I. (Eds.) (2009) The Global Information Technology Report 2008–2009, Mobility in a Networked World, SRO-Kundig, Geneva.
Digital identification based on the mandatory ID card.
In simple words, X-Road is a software-based solution that enables the various public and private sector e-service information systems to link up and function, as it connects different information systems with a variety of services. Similar systems are today implemented in Finland, Kyrgyzstan, Faroe Islands, Iceland, Japan, Ukraine and Namibia. It is also envisaged, that the X-Road platforms can be federated, i.e., a connection between them is created leading to the possibility to utilize services of both platforms. For example, Estonia and Finland entered in 2018 into a federation arrangement.
98 percent of bank transactions are done online.
A digitally enabled electrical grid that gathers, distributes, and acts upon information regarding the behaviour of all participants (suppliers and consumers) in order to improve the efficiency, importance, reliability, economics, and sustainability of electricity services.
A nationwide system integrating data from Estonia’s healthcare providers to create a common record every patient can access online.
See for example the 13th Waseda – IAC International Digital Government rankings 20,017 report. August 2017, Tokyo, Japan.
In 2018 in Estonian public sector 5 AI applications have been identified, the target for 2020 is set to 50.
Digital Government Factsheet 2019, Estonia.
As of 2017 testing of self-driving vehicles on Estonian roads is possible, provided there is a driver inside the vehicle who can any time take over driving the vehicle. Allowing self-driving vehicles into traffic on equal footing with other vehicles is, however, postponed until adopting the legal changes regarding general AI. See the Estonian Government press release dated 15.10.2019, available here: https://www.valitsus.ee/et/uudised/isejuhtivad-soidukid-ootavad-seadusemuudatust.
The European AI Landscape. Workshop Report. Available here: https://ec.europa.eu/digital-single-market/en/news/european-artificial-intelligence-landscape.
See: White Paper On Artificial Intelligence—A European approach to excellence and trust. European Commission, Brussels, 19.2.2020 COM(2020) 65 final.
That was adopted in May 2019, available at https://www.riigikantselei.ee/sites/default/files/riigikantselei/strateegiaburoo/eesti_tehisintellekti_kasutuselevotu_eksperdiruhma_aruanne.pdf.
X-road is the backbone of e-Estonia. Invisible yet crucial, it allows the nation’s various public and private sector e-service information systems to link up and function in harmony.
An Estonian technology company whose parcel machines, robots and robotic courier help solve last-mile logistics problems.
An international technology company that started its activities in Estonia.
For further AI applications see the site www.kratt.ee.
Although it is proposed that state funding should be available for projects which develop AI based solutions or create proof of concept solutions based on state databases, there are currently no such financial measures available for the private sector.
All three are valued at over 1 billion US dollars – so called unicorns.
Report on the safety and liability implications of Artificial Intelligence, the Internet of Things and robotics, European Commission Brussels, 19.2.2020 COM(2020) 64 final.
A European strategy for data, European Commission, Brussels, 19.2.2020 COM (2020) 66 final, p.16.
The expert group does not exclude that this will happen at one point of time, merely there is no justification to regulate things that have not yet happened. Also, keeping this in mind it was recommended that AI should not be given legal personality (similar to companies), neither is there a need to create a separate AI register. Also, AI cannot (at least not yet) be equated to an animal, who does not enjoy the same legal status with humans, however whose rights are still to some extent protected.
See: Siim Aben, Tehisintellekti tegevuskava. Available in Estonian at https://f98cc689-5814-47ec-86b3-db505a7c3978.filesusr.com/ugd/89dea2_f248941862c4414e8b5bb97bf93343c0.pdf.
Maarja Rannama, Eesti Infotehnoloogia ja Telekommunikatsiooni Liidu ettepanekud seoses Eesti tehisintellekti strateegia koostamisega. Available in Estonian: https://f98cc689-5814-47ec-86b3-db505a7c3978.filesusr.com/ugd/89dea2_21121a382e36417885c98c97e9d39356.pdf.
See § 23 (1) 3, § 23 (4), 26 (3) and so on of the General Part of the Social Code Act, RT I, 13.03.2019. Available here: https://www.riigiteataja.ee/akt/113032019157.
Many Estonian national information systems, however, currently are for information only, except land register and large part of date in the company register, that are considered having legal effect.
See for example E. Niiler. Can AI Be a Fair Judge in Court? Estonia Thinks So. WIRED, 25.03.2019. Available at: https://www.wired.com/story/can-ai-be-fair-judge-court-estonia-thinks-so/.
See: Updated Position on Pretrial Risk Assessment Tools, 2.7.2020. Available at https://www.pretrial.org/wp-content/uploads/Risk-Statement-PJI-2020.pdf..
Netherlands, District Court of the Hague, 5 February 2020 C-09–550,982.
European Commission for the Efficiency of Justice (CEPEJ). European Ethical Charter on the Use of Artificial Intelligence in Judicial Systems and their environment, Adopted at the 31st plenary meeting of the CEPEJ (Strasbourg, 3–4 December 2018).
See: White Paper On Artificial Intelligence—A European approach to excellence and trust. European Commission, Brussels, 19.2.2020 COM(2020) 65 final, p. 12.
RT I, 17.12.2015, https://www.riigiteataja.ee/akt/117122015076.
Paragraphs 4 and 16 of the Estonian Competition Act.
See for example Levitt, Matthew; Schöning, Falk; Coulter, Angus; De Stefano, Gianni; Citron, Peter (ed.). EU antitrust enforcement 2.0 – European Commission raises concerns about algorithms and encourages individual whistleblowers. In: Kluwer Competition Blog [online]. Available at https://competitionlawblog.kluwercompetitionlaw.com/2017/03/21/eu-antitrust-enforcement-2-0-european-commission-raises-concerns-about-algorithms-and-encourages-individual-whistleblowers/.. Manishin, Glenn. Digital Assistants: How Artificial Intelligence Competition Is Undermining "Hipster Antitrust"—Part I. In: Disruptive Competition Project [online]. Available at https://www.project-disco.org/competition/110917-digital-assistantscompetition-undermining-hipster-antitrust-part.. Ross, Michaela. Artificial Intelligence Pushes the Antitrust Envelope. In: Bloomberg [online]. Available at https://www.bna.com/artificial-intelligence-pushesn57982087335/.. Stucke, Maurice, E; Grunes Allen, P. Big Data and Competition policy. Oxford University press, 2016.
See for example following cases: AT.40465 (Asus), AT40469 (Denin & Marantz), AT.40181 (Philips) and AT.40182 (Pioneer), or the case concerning Lithuanian travel reservation system court case (C-74/14), where it was found that even a passive mode of participation in the competition law infringement is capable of rendering the undertaking liable.
For example, in 2018, Google was fined $ 4.34 billion for the latter's practice of "tying products". In 2017, the Commission fined Google a fine of € 2.42 billion because its search engine preferred its own price comparison service (the so-called Google Shopping case). As of 2016, there is a procedure under which the Commission is investigating Google's practice of restricting or displaying search ads ("Google AdSense case") of certain third-party competitors.
White Paper On Artificial Intelligence—A European approach to excellence and trust. European Commission, Brussels, 19.2.2020 COM(2020) 65 final, p 25.
M Halaweh. Viewpoint: Artificial Intelligence Government (Cov. 3.0): The UAE Leading Model. Journal of Artificial Intelligence Research 62 (2018) 269–272.
Considering that the USA and China, although members of WTO, do not have such a sophisticated and centralized State Aid regime as European Union has, which severely restricts supporting companies with public funds, and only allows supporting subject to ex ante approval by the European Commission.
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Kerikmäe, T., Pärn-Lee, E. Legal dilemmas of Estonian artificial intelligence strategy: in between of e-society and global race. AI & Soc 36, 561–572 (2021). https://doi.org/10.1007/s00146-020-01009-8
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DOI: https://doi.org/10.1007/s00146-020-01009-8