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In this chapter we ask how values and ethics in AI development can be incentivized by governments. We start out from the difficulty acknowledged in the rapidly growing field of AI ethics that the many proposals for ethical AI - or Human Centered AI (HCAI) – lack strong incentives for developers and users to adhere to them. The crucial insight from this chapter is from the use of a we simple theoretical model which shows how public procurement of innovation can incentivize the development of HCAI.
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