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The Governance of Big Data and Artificial Intelligence in Network Industries

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  • Guenter Knieps

Abstract

An important precondition for the development of artificial intelligence (AI) in network industries is the access to big data and the attendant necessities of data sharing and data portability. The goal of this paper is to analyze the changing needs of entrepreneurial decision-making to exhaust the innovation potential of AI-driven big data value chains taking into account AI-specific ethical, security and privacy regulations. The analytical concept of AI-powered big data virtual networks is investigated with a focus on the governance of 5G-based big data value chains required for Internet of Things (IoT) applications in particular smart networks. Although several actors may be involved—such as broadband providers, cloud service providers, geopositioning service providers, or sensor network service providers—the final responsibility for bundling these different service components lies in the hands of the AI-powered big data virtual network providers. In addition to the required data privacy and security regulations, the exploration of new liability rules for AI interacting with traditional technologies is becoming relevant, taking into account AI-specific ethical and transparency obligations. Firstly, the complementary roles of the EU data regulatory framework and European AI regulatory framework are examined. Secondly, the network economic concept of AI-powered big data virtual networks is elaborated taking into account the required regulations. Thirdly, the heterogeneity of AI systems—required for a variety of IoT applications—is considered, with a particular focus on the application of AI within the transportation sector.

Suggested Citation

  • Guenter Knieps, 2023. "The Governance of Big Data and Artificial Intelligence in Network Industries," Competition and Regulation in Network Industries, , vol. 24(2-3), pages 57-71, June.
    • Handle: RePEc:sae:crnind:v:24:y:2023:i:2-3:p:57-71
    DOI: 10.1177/17835917231185877
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    References listed on IDEAS

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    1. Knieps, Günter & Bauer, Johannes M., 2022. "Internet of things and the economics of 5G-based local industrial networks," Telecommunications Policy, Elsevier, vol. 46(4).
    2. Günter Knieps, 2021. "Digitalization technologies: the evolution of smart networks," Chapters, in: Juan Montero & Matthias Finger (ed.), A Modern Guide to the Digitalization of Infrastructure, chapter 2, pages 43-58, Edward Elgar Publishing.
    3. Günter Knieps, 2017. "Internet of Things, future networks, and the economics of virtual networks," Competition and Regulation in Network Industries, , vol. 18(3-4), pages 240-255, September.
    4. Parcu, Pier Luigi & Innocenti, Niccolò & Carrozza, Chiara, 2022. "Ubiquitous technologies and 5G development. Who is leading the race?," Telecommunications Policy, Elsevier, vol. 46(4).
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Artificial intelligence; internet of things; big data; virtual networks; smart transportation; JEL:; L51; L96; O31;
    All these keywords.

    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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