CODE calls for open ecosystems, enabling Europe to become AI app world leader [Advocacy Lab Content]

2 months ago 25

Is openness at the heart of the EU’s competitiveness strategy? Euractiv spoke with Lorenzo Frollini founder, CEO & CTO of Flywallet, a wearable technology, biometrics and AI company. Frollini explains why Flywallet supports CODE, a new coalition of firms advocating for open digital ecosystems.

EV: What will CODE’s contribution to the European Digital Agenda be?

LF: CODE believes in centring openness in the Competitiveness Agenda, by embracing open digital ecosystems in the EU’s policy framework. In our recent contribution, we set out three strands of action: delivering consumer choice; embracing open access; and embedding the principles of openness in new technologies. This is where we think EU policymakers should focus their attention.

EV: Why is a more competitive Europe vital to the race for digital transformation?

LF: A more competitive Europe encourages innovation, leading to the development of new technologies and digital solutions. Such a digital transformation will ensure the EU continues to attract investment, retain talent and retain technological leadership, thereby enhancing the EU’s geopolitical influence and strengthening economic resilience.

EV: What are digital open ecosystems?

LF: Open digital ecosystems are characterised by the ability of businesses to freely develop, use and exploit technologies, standards and interoperable systems. They stimulate innovation because they empower consumer choice. At Flywallet, we strongly believe in the cooperation and interaction of different solutions to provide the best experience to the end users.

EV: How can the EU promote seamless connectivity and interoperable systems to fuel innovation?

LF: Effective and consistent enforcement of existing legislation can help if the EU is brave enough to take on powerful vested interests. Additionally, developing interoperability standards for AI models and their outputs, and implementing policies that prevent manufacturers from tying hardware and software exclusively to one AI service or capability will also be crucial in the future.

As with Flywallet’s first product Keyble – the biometric smartband specifically designed for senior people and augmented workers – we made every function completely accessible at the hardware level thanks to the connection with our API-based platform. We hope that other manufacturers will also adopt this approach in providing for companies that want to build better-integrated services to end users.

EV: Why are empowering consumers to choose, and use, devices and services seamlessly so important?

LF: We live in a digitally connected world. Users should be in charge of their digital experiences – customising their devices and services to work for them, and not the other way around. Not only does this provide consumers with the best experience, but it also increases competition among companies, and in this way, it drives innovation.

Users should be able to freely select, use, and seamlessly move across a range of connected devices and services, from smartphones to wearables, regardless of brands or operating systems, and take with them all important data and content without cost using agreed open industry standards.

They want to customise their experience by choosing their own preferred defaults, be they apps, payment systems or online services. Users should be able to move from one ecosystem to the other with ease and not feel beholden to one company.

EV: On the regulatory side, what can be done to support open standards and encouraging design patterns allowing consumers to make a free choice?

LF: Open standards can be supported through various means, from natural market forces to certification programmes for devices meeting interoperability standards and extending to enforcement and legislative intervention.

Specifically, the EU can endorse data and content portability standards, such as the Data Transfer Initiative, and support device and network switching initiatives like the eSIM infrastructure rollout led by the GSMA, European telecoms, and technology companies. Additionally, promoting mobile connectivity standards developed by 3GPP can help underpin the next-generation connectivity necessary to drive innovation.

Wallets for payments and digital identity play a crucial role in this scenario, and users must be able to use the solution they prefer. Companies should be able to access any hardware component, like NFC Secure Elements, to provide their customized solution in order to increase competition and foster a better consumer experience for the particular target user they want to serve.

EV: If EU policymakers and industry want open ecosystems, how do they work together to deliver them?

LF: There are many ways, but for us establishing collaborative frameworks where policymakers, industry leaders, and stakeholders can regularly meet to discuss and align on standards and best practices would be an obvious one.

Also, the promotion and implementation of open standards for interoperability, ensuring that systems and technologies can seamlessly integrate across different platforms and devices. Policymakers can help by encouraging companies to bake in the principles of openness when new devices and services are being conceived, rather than having to open them up at later stages through enforcement action.

EV: CODE argues that true security should not depend on secrecy but on the robustness of the security mechanisms themselves. If that’s so, how can Europe build systems with greater trust between users and stakeholders?

LF: It’s all about promoting more open and transparent security practices, enabling public scrutiny and collaboration. In concrete terms, we would support processes that allow for timely patching, within different regulatory frameworks and cybersecurity policies. Open systems help patches to be developed, shared and applied more rapidly across the ecosystem.

Similarly, collaboration between companies and regulators on global standards, such as encryption standards and ongoing work with the GSMA on labelling the security features of Connected Devices. A centralised vulnerability disclosure would also help.

Fostering partnerships between the public sector, private companies and academia to share best practices, threat intelligence and resources related to vulnerability management is crucial.

In essence, openness allows systems to build greater trust with users and stakeholders, who can directly verify security measures. This transparency is particularly crucial in sectors where trust and compliance are paramount, such as healthcare and finance.

EV: How can Europe benefit from an open ecosystem with next-wave technology such as AI and Virtual Worlds?

LF: By promoting open ecosystems, Europe can be a world leader in the development of AI applications.

Currently, baseline infrastructure for foundation models is costly and energy-intensive. However, start-ups and SMEs can navigate this via the deployment and customisation of AI models, giving them access to technology which they wouldn’t otherwise develop on their own.

Open ecosystems broadly foster interoperability and collaboration, allowing for seamless integration of new technologies across various platforms. This leads to more competitive markets, accelerates technological advancements, and provides consumers with greater flexibility and trust in their digital interactions. This approach not only promotes fair competition but also encourages innovation and diversity in the tech landscape, giving space to startups like us.

EV: What happens if Europe is slow to act in transforming its competitiveness and obstructing open ecosystems?

It risks falling further behind in the global technology race. This hesitation can not only lead to reduced innovation, less competitive markets, and diminished consumer choice; additionally, the EU may miss out on the economic and societal benefits that come with leading in emerging technologies like AI and virtual worlds.

Ultimately, a failure to embrace open ecosystems could result in a loss of technological leadership and growth, leaving Europe reliant on external innovations and compromising its digital sovereignty.

At Flywallet, we hope for a Europe where new players can grow from this approach of digital openness, resulting in a variety of solutions that better help the everyday lives of each specific user and their needs.

Lorenzo Frollini, and CODE

Lorenzo Frollini is the founder, CEO & CTO of Flywallet. Flywallet’s mission is to empower vulnerable people to live a healthier and safer life by combining wearable technology, biometrics and AI.

CODE aims to foster collaboration among academics, consumer groups, companies, policymakers and startups in a collective effort to embed the principles of openness, such as consumer choice, access and interoperability.