FirstFT: US, China and 26 other nations agree to ensure AI is developed in ‘human-centric’ way

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Good morning. The US, China and 26 other countries have agreed to work together to ensure artificial intelligence is used in a “human-centric, trustworthy and responsible” way, in the first global commitment of its kind.

The pledge forms part of a communiqué signed by major powers at the inaugural AI Safety Summit. The two-day event began yesterday and is being hosted by British Prime Minister Rishi Sunak at Bletchley Park.

Called the Bletchley Declaration, the document recognises the “potential for serious, even catastrophic, harm” to be caused by advanced AI models, but adds such risks are “best addressed through international co-operation”.

Despite the pledge on AI safety, attendees have set out rival positions on how far such controls should go. The FT reported that Chinese AI scientists have joined western academics in calling for tighter controls on the technology than those being proposed by the UK, US and EU. Here’s more on the joint statement — an early indication of China’s likely stance on global AI regulation.

And here are the latest developments in US-China relations:

• China hawk nominated: US president Joe Biden has nominated Kurt Campbell — a veteran Asia expert who is seen as tough on China — to be deputy secretary of state.

• Chinese drones: The House of Representatives China committee will introduce a bill that would ban the US government from buying Chinese drones.

Here’s what else I’m keeping tabs on today:

• Monetary policy: The Bank of England is expected to hold rates unchanged, signalling the battle against stubborn inflation is far from over.

• Companies: Apple, Shell, Moderna and Starbucks are among those reporting earnings.

Five more top stories

1. Foreign nationals and sick and wounded Palestinians began leaving Gaza through the Rafah border crossing into Egypt for the first time since the war between Hamas and Israel erupted. The evacuations took place as international concern intensified over the humanitarian cost of Israel’s military onslaught against Hamas targets in the enclave.

2. The Federal Reserve held interest rates at a 22-year high yesterday but kept open the possibility of additional monetary tightening amid mounting evidence the US economy remains strong. The Fed upgraded its assessment of the world’s largest economy, saying that activity had expanded at a “strong pace”.

3. Exclusive: European private equity group CVC Capital Partners has postponed plans to float until next year because of market uncertainty, according to two people with direct knowledge of the decision. The delay to CVC’s plans to list in Amsterdam extends a two-year saga over whether it will follow rivals on to the public markets.

4. Estée Lauder shares plunged after the US cosmetics group slashed its profit outlook owing to a slow recovery in Asia and warned of an almost $80mn hit to earnings from disruption caused by the Israel-Hamas war. The company has reported a string of weak quarterly results owing to the weakness in China, as the world’s second-largest economy struggles with its post-pandemic recovery.

• Toyota: The Japanese carmaker has raised its full-year forecast as it reported profits more than doubled in its latest quarter.

• Kweichow Moutai: Shares in the Chinese liquor giant jumped 6 per cent yesterday after it raised distributor prices for the first time in six years.

5. India is tightening transparency rules for “high risk” foreign investors, as part of the fallout from allegations of stock manipulation made by short seller Hindenburg against the Adani conglomerate this year. Here’s what the new regulations aim to achieve.

News in-depth 

Taiwan’s presidential election is still more than two months away but its decisive battle is being fought now — in Taipei’s political back rooms. The two leading opposition candidates are wrestling over a deal to join forces that could reshape the January 13 election. Failure to reach agreement could be disastrous for their hopes of calmer ties with China.

We’re also reading . . . 

• War in Ukraine: Russia’s president Vladimir Putin unnerved his foes and friends with nuclear threats, but has since toned down his rhetoric. Here’s why.

• FTX trial: Former crypto tycoon Sam Bankman-Fried will soon learn whether he was able to successfully counter his ex-colleagues’ testimony as the jury weighs duelling accounts of FTX’s downfall.

• How older women defy evolutionary logic: A new study of chimpanzees has failed to explain why humans and some animals survive post-menopause, writes Anjana Ahuja.

Chart of the day

Private equity firms used the era of cheap money to snap up one company after another and become the new titans of the financial sector. But dealmakers are now wrestling with higher borrowing costs, and some see a deepening crisis for the industry if rates stay higher for some time.

Take a break from the news

“I still dress like a teen — though it’s probably not doing my career any favours,” writes the FT’s Annachiara Biondi. The 33-year-old millennial explains in this essay why she’ll continue to embrace her graphic T-shirts, crop tops and battered Vans even if others view it as a sign of immaturity.

Additional contributions from Tee Zhuo and Gordon Smith