AI Software Developed in Public-Private Cooperation with Legal Sandbox Framework

This information was sourced from "AI Software Developed in Public-Private Cooperation with Legal Sandbox Framework" by Observatory of Public Sector Innovation (OECD), https://oecd-opsi.org/innovations/est-ai-sandbox/. Licensed under Creative Commons Attribution-ShareAlike 3.0 IGO (CC BY-SA 3.0 IGO).

Innovation Overview

In November 2019, we successfully added the first artificial intelligence (AI) based application, developed in public-private cooperation to the Estonian digital state code repository (created in spring 2019).

This piece of software can now be re-used and further developed free of charge by all private and public sector stakeholders. As this was a pilot project and only the first of many, we have reason to believe that implementations of the so-called sandbox co-operation model, which allowed this pilot project to come into life, will provide new opportunities for the private sector to develop and launch innovative digital solutions with the state (not exclusively AI applications) and introduce their accomplishments everywhere in the world. Our goal is to have at least 7 such basic AI components available by the end of 2020, free for use by everyone.

One of the fundamental ideas of the Estonian digital state has been relying on platforms or common solutions instead of re-inventing the wheel, where ever possible. We are now looking for ways to bring the same platform-based approach and acceleration to new technologies, such as the field of AI. Today we are happy to see that the first step in this direction has brought results.

The first AI basic component is a text analysis tool created by Texta – an Estonian start-up, which has already helped several government institutions in streamlining and automating their processes and routine activities. For example, the Ministry of Education and Research is conducting a document management audit using the same AI component to identify documents that have been tampered with (e.g. internal documents, personal data, etc.). The Ministry of Justice used the component to remove personal information from nearly 80 000 expired court sentences. The component grew out of applied research at STACC and its development has been supported by the Estonian Language Technology Program.

We are putting the AI components to work on the principle that anyone can download the basic solution from our code repository and train it (or further develop it) on their own data.

In order to develop this solution, the Ministry of Economic Affairs and Communications also established a new form of cooperation, i.e. a technological sandbox framework for cooperation between the public and private sectors in IT development. We strongly believe that all innovation in a digital state does not only have to come from lengthy and complex procurement processes and depend on the knowledge of public servants.

Therefore, before we launched the the sandbox framework, we thoroughly analysed how to make this work under EU procurement rules. We consulted with several legal experts from both sectors as well as with the Public Procurement and State Aid Department of the Estonian Ministry of Justice. Through careful analysis we established 6 principles that have to be followed in the framework.

This innovation allows us to open up the opportunity for a new kind of development cooperation, whereby a private sector party (e.g. a company, university or individual developer) can create additional components to or further develop previously created solutions of Estonia. The state and the general public receive the developed solution for free use and the creator of the solution can demonstrate their solution as a success all over the world.

What Makes Your Project Innovative?

For years it has been regarded as an inevitability, that cooperation with the public sector is only possible through procurement processes. We managed to establish a regulatory framework that allows a much more flexible and time-efficient approach. This means that developing and implementations can move forward faster and has a potentially in a wide variety of different domains. The general idea supports multi-party development and reusing by other stakeholders. Through this, it serves the concept of Government as a Platform.

One of the main directions of the Estonian national action plan for the implementation of AI is the testing, commissioning, and making available by the state base components of AI-based standard applications that would speed up the implementation of AI-based solutions. This can happen throughout a wide variety of domains by different stakeholders.

What is the current status of your innovation?

Using the same Sandbox Framework, our goal is to have at least 7 AI components available for the general public by the end of 2020.

The first base component for AI-based solutions added to the source code repository is a text analysis tool created by Texta OÜ, which has been used by many institutions to date for increasing the effectiveness of their work processes and the automation of routine activities.

The Ministry of Education and Research, for example, uses the tool for the audit of document management aimed at identifying documents which have gone public without permission.

Using Texta, the Ministry of Justice in cooperation with the Centre of Registers and Information Systems (RIK) stripped personal data from nearly 80,000 judicial decisions involving expunged punishments and thereafter made the decisions available in the court information system again

Collaborations & Partnerships

Government officials – the ministry of Finance, which helped us establish out the legal basis for the Sandbox Framework; the ministry of Economic Affairs & Communications which initiated and executed the project; the Information System Authority which organised uploading the AI-component into the code repository

Companies – Texta OÜ, the start-up which developed the first AI-component; Priorilaw OÜ, a law office, which helped us establish out the legal basis for the Sandbox Framework

Users, Stakeholders & Beneficiaries

Government officials – all government authorities can use and further develop the AI component for their own needs and therefore use the most innovative and most effective technologies on the market. Companies – the government is open to co-operation with all companies that wish to execute similar projects. With the sandbox framework, we are opening up the possibility for cooperation in development in which framework a company, university or individual developer can develop the solution further.

Results, Outcomes & Impacts

One of our main Key Performance Indicators is to have at least 7 AI-components available for the public by the end of 2020 and at least 25 government institutions which have implemented these solutions.

Currently there is one free for all code at the repository, but the general idea dictates that in the future there will be significantly more. Government as a Platform concept foresees that this will bring different stakeholders closer to work together and therefore make developing and reusing solutions faster with less resources needed initially.

As the innovation is relatively new, there haven't been any numeric results, other than the collaborations mentioned before. In additon the Estonian Rescue Board uses this solution.

Challenges and Failures

Establishing a functioning legal framework was a highly challenging task due to the complex system of EU procurement and state aid rules. We managed to overcome these difficulties by involving experts from both public and private sectors and meticulously drafting and improving the principles which could, and finally did, make the Sandbox Framework work.

The overall difficulty and success lies in the fact, that previously it was only through complex bureaucracy possible to engage in such collaboration. This however lays the foundation for further collaboration between the stakeholders and now as the proof of concept as well as real solution is ready, the possibility is immense. At a certain point it seemed that the possibility of making this happen diminished completely, however through excessive legal analysis, the project became possible.

Conditions for Success

Leadership and guidance – as our ambition is to keep developing the Sandbox Framework, we need to keep involving legal and technology experts from all sectors. To develop said solution, a new form of cooperation was established under the leadership of the Ministry of Economic Affairs and Communications in the form of a technology sandbox for cooperation in IT development between the public and private sectors

Personal values and motivation – government authorities must be open and willing to implement new solutions for this to succeed in the long term

Human and financial resources – One of the main drivers of this project is the fact and there will be an opportunity for stakeholders to save human and financial resources in being part of the project and using and reusing the already developed components available at the source code repository.

Replication

The very essence of this project is to have a wide variety of users and stakeholders to contribute to the overall success of this project. The Sandbox Framework itself creates a solid basis for further cooperation between the entities from private and public sector to use, reuse and develop further the already existing code. Potentially the idea is, that if other stakeholders will contribute to developing the already existing solutions, others will find something to implement for themselves and it will help to move forward with the government as a platform concept.

Sharing software and solutions gives companies the opportunity to build new products and services or develop existing ones. It also supports the development of the digital state. These solutions can be and should be used and shared more across different areas of governance in Estonia and potentially globally.

Lessons Learned

First and foremost, it is clear now that new ideas require a certain level of understanding between all stakeholders to move forward with. At times it will present challenges that did not seem to be present at first and therefore it requires flexibility to re-evaluate and adjust the path taken towards the initially set out objectives. Secondly, in order to make things happen, it is needed to outsource expertise and take into account the fact that the effort that will be put in at first might bring exponential benefit after a certain period of time. This requires perseverance and commitment to push things through. Furthermore, in a complex legal framework it is increasingly important to find ways to innovate that are in full compliance of such frameworks.

Budget: Not disclosed