Development & Implementation of the world's first Artificial Intelligence (AI) Social Stock Exchange with AI, Strategic, Technology & Global Standards Frameworks

1. DEVELOPINGSTRATEGIC,AI,
TECHNOLOGY&GLOBALSTANDARDS
FRAMEWORKS OFAFRICAAI-CENTER
OFEXCELLENCE(AAI-COE)FOR
WORLD’SFIRSTAISOCIALSTOCK
EXCHANGE(AISSE)?
BY
JOHNNYMOI –UPDATED20JULY2020

2. AI:BACKGROUND/INTRODUCTION
 What is Artificial Intelligence(AI)? – Artificial
Intelligence (AI) refers to the simulation of
human intelligence in machines that are
programmed to think like human and mimics
their actions.The term may also be applied
to any machine that exhibits traits
associated with a human mind such as
learning and problem-solving. -
(Investopedia)
 AI markets valued at USD 21.46 billion (2018)
and estimated to USD 190.61 billion (2025) –
(marketsandmarkets.com)
 USD 15.7 trillion potential contribution to
global economy by 2030 from AI applications
– (pwc.com)
 aisse – African word meaning “life” 2

3. AISSEBACKGROUND/INTRODUCTION
Social Stock Exchanges (SSEs):
￮ Trading platform listing “social development” businesses in
approved Main Stock Exchange
￮ Allows investors to buy shares of Companies in : Education, Food &
Agriculture, Energy, Water, Sanitation, Healthcare, Green Tech,
Environment orientated and AI approved businesses
￮ Key participants: Government, Financial Institutions, Community
Organizations, Social Development Agencies, Social Entrepreneurs,
Investors…
￮ Some SSEs (differ in form and function):
* UK: Social Stock Exchange (SSE)
* Canada: Social Venture Connexion (SVX)
* Singapore: Impact Exchange (IX) @ Mauritius Stock Exchange
* South Africa: South Africa Social Impact Exchange (SASIX)
* U.S. : Mission Markets (MM)
AI Social Stock Exchange (AISSE):
An approved compliant trading platform listing social development &
impact investing or Principles Responsible Investing (PRI) businesses
in approved Stock Exchange with focus on Artificial Intelligence apps
* None in the world yet! SPONSOR to champion AISSE! – Be the first
Sponsor to gain global branding by sponsoring it!
3

4. AI Socially Responsible
Investing (AISRI)
 Also known as social investment using
AI apps and related technologies
 Sustainable socially conscious
 Green
 Ethical Investing
 Environmental Social Governance (ESG)
factors
… is any investment strategy which seeks
to consider both financial return and social /
environmental / governance good to bring
about social change regarded as positive by
proponents in AI environment / ecosystem 4

5. Background#1
CURRENTPOSITION
New emerging concept with challenges:
￮ Accretion & accreditation of key participants
￮ Social and AI mission of the business
￮ Target beneficiaries
￮ How the AI business impact the companies and
stakeholders
￮ Metrics or measurement tools of social and / or
environmental impact / screens and parameters
￮ Compliance and limitations and existence of
existing financial screens and parameters
￮ USD 70 Trillion of assets worth / traded (2017), 1750
signatories and > 50 countries – United Nations
Environmental Program: Principles Responsible
Investing (PRI) guidelines
5

6. Background#2
CURRENTPOSITION–KEYAREAS
OFRESEARCH
￮ Policy & regulation for a sustainable AI
Framework – In development
￮ Education, training & awareness activities
– In development
￮ Research & Development activities – In
development
￮ Metric tools or methodologies to
measure the impact – In development
￮ Creating a sustainable AI framework for
localised / universal AISSE – In
development
6

7. Background#3
ASSUMPTIONS
￮ Will adopt & enhance existing policies & guidelines
in setting up as an AISSE using PRI & AI principles
￮ Encourage new and existing members of AI
community to join as founding members of AAI-
COE
￮ Regulated by relevant authorities of country-
specific
￮ Initial funding by SPONSOR (if any) under its CSR or
other funding programs by co-sponsors
￮ SPONSOR (if any) to spearhead the first Africa AI -
Centre of Excellence (AAI-COE) to the world
￮ SPONSOR (if any) proposed to be the Leading AI
Enterprise Incubator & Accelerator in related
activities & development
7

8. ProjectObjective#.1
PROJECTOBJECTIVES
￮ To develop & implement the first Africa
AI Centre of Excellence (AAI-COE) to
promote world’s first AI Social Stock
Exchange (AISSE)
￮ To enhance the positive image of
related government agencies and
social stakeholders of country specific
￮ To assist other African nations &
countries in developing similar AI
setups leveraging on related networks
￮ To be a respectable CoE in AI
Education and Consultancy
8

9. ProjectObjective#.2
BRIEFDESCRIPTIONOF
STRATEGY
AAI-COE will be created with:
￮ Latest ICT technologies (AI, Block chain
technology, Mobile Apps/other IT apps)
￮ Competent people (guided by
Professional Team) / Social
Entrepreneurs / Government agencies
/ AI Professionals and Academia
￮ AAI-COE will bring together the
governments, business entities and
social investors and the AI community
at large! 9

10. Proposed Strategic Thrusts
 Introduce sponsor’s nation
positioning as the leading global
hub for AI investments
 Establish the sponsor / nation
as a leading / global center for AI
Social Responsible Investment
(AISRI)
 Develop sponsor / nation as an
international provider of AI
management products and
services
10

11. Proposed Strategic Blueprint
 Provide enabling frameworks to support innovations in AI
markets
 Enhance market access and international connectivity to AI
 Develop a vibrant ecosystem to speed up growth of AI
sustainability and responsible investment
 Promote the growth of private & public equity with
responsible investment consideration
 Facilitate new digital business models, products and
services for AI
 Promote sponsor / nation positioning as a pioneer hub for
AI & responsible investment support services
 Encourage institutional participation in AI fundings
 Develop facilitative market infrastructures for AI investment
management
 Strengthen intermediation capabilities to support
internationalization
 Contribute to talent pipeline in AI skills and training
 Provide targeted incentives to strengthen international
competitiveness in the future new markets in AI
11

12. ProjectObjective#.3
STRATEGY-SUPPORTING
PLATFORMS:
￮ Formation of AAI-COE – Framework & Guidelines
￮ AAI-COE Advisory Board – Policies & Direction
￮ AAI-COE Partners Incorporated – Business Partnership / AI Alliance
￮ AAI-COE Bonds & Funds – Raising capital: bonds and funds
￮ AAI-COE Academy / CoE – Promotion for the science and art activities
of AI Exchange
￮ AAI-COE Institute – Promotion of educational activities
￮ AAI-COE Advisory & Research – Provision of advisory services, identify
investment opportunities, conduct due diligence and manage
transactional exchange
￮ AAI-COE Growth Fund – Issuance of growth funds: matured market
using acceptable funds and principles?
￮ AI Accelerator Fund – To expedite growth of budding enterprises
using acceptable funds and principles in AI?
￮ AI Standards Advisory – To measure and monitor social-environment
impact? To include AI impact? AI parameters and principles.
￮ AAI Foundation – Capital market enhancement activities that scale
up positive impact of the entity and AI partners
12

13. Project #. 4
RURALDEVELOPMENTBONDUSINGAI
(EXAMPLE)
￮ Mobilizing private capital for
development in rural or designated
areas
￮ Ecosystem of people and
organizations in rural areas designated
￮ Access to the financial markets
￮ Using approved financial instruments /
facilities and AI principles?
13

14. Project Objective#.5
DEVELOPMENTGROWTHFUND
USINGAI(EXAMPLE)
￮ Accelerator program that assists
social enterprises matching capital to
different stages of growth
￮ Cover key areas: Water, Sanitation,
Energy, Food, Agriculture, Education,
Healthcare, Green Technology,
Environmental friendly…
￮ Using approved financial instruments
and AI principles?
14

15. ProjectObjective#.6
MARKETVALUECHAIN–UTILIZING
INNOVATIVEFINANCE&IMPACT
INVESTINGPRINCIPLES& FINANCIAL
INSTRUMENTS
Will include:
￮ Seed capital – Initial funding to begin
creating a new business or product(s)
￮ Early stage capital – Financing
provided by financier after seed
capital
￮ Growth capital – Expansion capital or
growth equity for expansion purposes
￮ Bridging capital – A form of debt or
equity; loan to equity
￮ Exits – Plan by owner(s) to exit equity 15

16. ProjectObjective#. 7
IDEATOMATURITYSTAGES&
UTILIZINGINNOVATIVE FINANCIAL
INSTRUMENTS
Will progress from:
￮ Idea stage – Early steps in an innovation
process until documented in a business
case
￮ Early stage – Financing by stakeholders after
seed capital
￮ Expansion stage – Financing provided by
stakeholders / investors to Co. whose
product(s) are commercially available
￮ Pre-IPO stage – Placement of large block of
stock before listing
￮ Maturity stage – Longest period of sales
peak before decline
￮ Exit stage – A business exit strategy by
owner to sell ownership to investors 16

17. ProjectObjective#.8
MARKETINGSTRATEGY&TARGET
MARKETS
￮ A Marketing Plan will be developed upon
approval that includes:
￮ Above & below the line marketing activities
￮ Supplemented by Social or Digital Media
￮ Target markets include Social Investors,
Govt related agencies, Financial Institutions,
Community organizations, Green
Development Agencies, Social
Entrepreneurs, Philanthropic Bodies,
Foundations and / or AI entities?
17

18. Expected Outcomes #.1
INVESTMENT MARKETING INFORMATION
 USD 60 – 70 Trillion (2017 – United Nations Environment Program
: Principles for Responsible Investment (PRI), 1750 signatories, >
50 countries as of Aug 2017)
 USD 21 Trillion (BRI Inspired Investing Group with data from Pew
Research)
 USD 31.4 Trillion ( US Investor Group, 2019)
 USD 28.2 Trillion (Investment Company Institute 2017)
18

19. AI INVESTMENT MARKETING INFORMATION
 AI markets valued at USD 21.46 billion (2018)
 Est. AI markets at USD 190.61 billion (2025)
(marketsandmarkets.com)
 USD 15.7 trillion potential contribution to
global economy by 2030 from AI applications
(pwc.com)
19

20. ExpectedOutcome#.2
POSITIONINGSTATEMENTS
￮ World: “World’s First AI Social Stock
Exchange advocated by SPONSOR”
￮ Rest of the World: “AI Social Stock
Exchange - Creating the Social Stock
Exchange of the Future” (Under the
flagship of SPONSOR)
￮ “ AI - Social Stock Exchange of The
Future!
￮ Catchword: AI & Impact Investing”
Partnership
￮ SPONSOR: The Leading Evangelist of AI
Social Stock Exchange!
￮ SPONSOR: The Global Advocate of AI
Social Stock Exchange!
￮ AISSE – The Intelligence of Stock
Exchange! 20

21. ExpectedOutcome#.3
BRANDINGSTRATEGY
￮ World: “The world’s first AI Social Stock
Exchange!”
￮ Rest of the world: “Country-specific AI Social
Stock Exchange”
￮ Tagline: Investing in People, Planet, Profits &
Preservation, Progress & Promulgation (6P’s)
for the Future
￮ Will use both traditional and digital media to
create branding to public and world at large
￮ AI compliance Social Stock Exchange?
￮ AI & Impact Investing Partnership
￮ SPONSOR: The Global Advocate of World’s
First AI Social Stock Exchange!
￮ World’s first AI Responsible Investing Stock
Exchange
21

22. ExpectedOutcome#.4
PRODUCT/SERVICESTRATEGY
￮ Provides an investor-friendly & AI trading
platform listing social business developed
from Legal, Government, private sector and
related entities for all countries particularly
the AI community and users of AI
￮ SPONSOR CO will provide assistance and
end-to-end consultancy services to
countries intending to start their AI Social
Stock Exchange
￮ SPONSOR CO will be the Academy & Centre
of Excellence (CoE) on AI Social Stock
Exchange to the world
22

23. ExpectedOutcome#.5
PROMOTIONSTRATEGY
￮ Includes all activities in both traditional & digital
media to create awareness
￮ Printed & digital info about entity and services
￮ Alliances with other SSEs / World’s Social
Development bodies / UN agencies / Universities /
CSR bias entities / Social orientated foundations /
Impact Investing entities, AI business bodies
￮ Website, Blog & other Social Media platforms to be
employed to increase visibility
￮ Development & Implementation of AI Certification
programs & AAI-COE Summit or Conference, Gala
Events to be organised by SPONSOR CO
￮ Formation of the world’s first AI Global Network
Alliance?
23

24. Project&CommercializationPlan#.1
RESOURCESREQUIREMENTS
￮ Africa: will register with existing authorities of the Main
Exchange of Country (similar for country specific)
￮ Sponsor will seek partnership with Securities Commission
of country specific to leverage on existing infrastructures
for pilot project (where applicable)
￮ Listing of AAI-COE in other bourses may be considered
using capital mechanism like Alibaba, Grab...
￮ Proposer may rent an interim office space with ICT
facilities to conduct research and develop framework,
SOPs of supporting platforms e.g. Academy, Institute,
Advisory Board....etc...
￮ SPONSOR may allocate working space in its premises for
coordination or other related activities
￮ Proposer will develop the business model and initial set
up of entity
￮ Note: SSE (UK) took 18 months from idea to pre-IPO
maturity stage & has raised about US$ 1,000,000. SSE
Market Cap: GBP 1.25 Billions as of Nov 2019 24

25. Project&CommercializationPlan#.2
FINANCIALCONSIDERATIONSAND
COMMERCIALIZATIONPLAN
￮ Initial request of working grant / seed capital of USD
4,166 per month ( 6 months) to cover salary, living &
incidental expenses, visits to SSEs & key person(s)
funds to be requested, training programs (SSE &
Impact Investing, Innovative Finance, etc)...
￮ Proposer / SPONSOR to consider fund-raising thru
“Certified AI Professional / AI Investment
Professional and other related certification
programs” (To be determined)
￮ Fund –raising thru “World’s Summit /Conference and
Global Leadership Awards on AAI-COE Gala Event
hosted by SPONSOR (To be determined) (Separate
Event Organising proposals can be tabled)
￮ Donations and sponsorships during initial stage
￮ Self generating revenues from set up, consultancy
services, talks, training programs on AISSE?
￮ AAI-COE Academy or CoE to be listed in less than 5
years (Note: SSE (UK) took 18 months from idea to
pre-IPO maturity stage has raised about US$
1,000,000 - SSE Market Cap: GBP 1.25 Billions – 2019)
25

26. Project&CommercializationPlan#.3
PotentialCommercializationPlan
 Certified AI Social Stock Exchange Professional
(AISSEP) – 2 -3 day intensive program, 300 pax at
USD 1,500 per pax = USD 45,000.00 (Sponsor?) Bi-
annual or quarterly
 AI SSE Inaugural Gala & Awards Night – 500 pax at
USD 100 per pax per table of 10 = USD 50,000.00
 Platinum (1 @USD10 K), Gold (2 @USD 5K each),
Silver (4 @USD 3K each) & Copper (8@ USD 1.5K
each) Sponsors’ tables: projected revenues
@100% take up rate = USD 44,000.00
 Corporate & CEOs’ write up on Inaugural AI SSE
Handbook: Projected revenues of 30 X USD
5,000/Co = USD 150,000.00
 Project revenues from above= USD 289,000.00
 Revenues from Consultancy and services
rendered by SPONSOR-AAI-COE Think tank – From
USD 1,000,000 onwards for setting up AI SSE in
country
 Note: Proposal Papers for AAI-COE / AI SSE
Inaugural Gala & Awards Night are ready!
26

27. Financial Road Map
 Develop and implement Certified programs
offline & online
 Development of paid training programs,
workshops, seminars, talks
 End to end consultancy for start up clients
(world countries)
 Annual Event Organizer for Summit / Gala
Awards for country specific
 Paid advertorials on CEOs & Company for
Directory / Handbook
 Fund raising thru equity / crowd funding
 Pre IPO Offer & IPO listing within 5 years or
earlier
27

28. KPIs
 Set up CoE and registered Co within 3
months
 Website, Blog & Social Media within 3
months
 Documentation & SOPs – Ongoing
 Development & implementation of
Certified Professional Programs within 6
months onwards (4 programs from 2nd
year onwards)
 Launch of Inaugural / Annual / Summit
Awards Event within 1 year / Annually
 Expansion to African & world’s
countries – Minimum 5 countries
from 2nd year onwards
 Pre IPO Offer & IPO Listing of CoE
within 5 years or earlier 28

29. 29
Financial Benefits to Sponsors /
Investors (where applicable)
 Targeted 20% ROI per year
 Proposed Dividend Policy (up to 50%
from profit years)
 Angel Tax Incentives
 VCC Incentives
 Operational HQ Incentives
 International Offshore facilities &
incentives (where applicable)
 Government grants & incentives
 Investment opportunities in overseas
markets via JV / VIP programs

30. 10 COMMANDMENTS: AN AI
PERSPECTIVE (PROPOSED)
The concept is within the context of robot (the created entity
with artificial intelligence) and mankind (creator[s]):
 You shall have no other creator(s) before me…Ownership of robot is the creator
or assign by the original creator.
 You shall not make for yourself an idol in the form of anything…Robots are not
to make clones of themselves or the creator(s).
 You shall not misuse the name of the creator…Robots are not to program
themselves beyond the scope defined by the creator(s).
 Remember the creation day by keeping it useful…Robots may program
themselves to shut down to prevent machine fatigue and doing evil defined by
the creator(s).
 Honor your creator by doing good and no evil defined by the creator(s)…Robots
must be programmed to do good and useful functions defined by the creator(s).
 You shall not murder…Robots must NOT be programmed for killing any life form
but to protect it.
 You shall not commit adultery…Robots must NOT be programmed to work with
other ‘wayward’ robots for evil or destructive purposes
 You shall not steal…Robots must NOT be programmed to steal or feed upon the
‘intelligence’ of other robots.
 You shall not give false testimony…Robots must NOT be programmed to join
force with other robots against the creator(s)
 You shall not covet…Robots must NOT be programmed to withheld the
‘intelligence’ given and improve themselves beyond the purpose of their
creation. 30

31. TECHNOLOGY LEADERSHIP FRAMEWORK USING
AI TECHNOLOGIES (PROPOSED)
 New economic financial models that reflect the full cost of resource depletion &
environmental impact
 New energy conservation patterns that will reduce our indiscriminate use of
fossil fuels
 New non-fossil fuels (biomass, solar, wind, water, nuclear, others) sources that
will replace a portion of our oil consumption and that will limit the emission of
greenhouse gases into the atmosphere
 New sustainable housing and transportation alternatives that limit the impact
on the environment, the use of energy and the generation of waste
 New accounting and auditing practices for public & private companies that fully
account for environmental impact, energy use and resource demand
 New environmental ethics for individuals and corporations
(Credit to Derk Matt, CEO, www.hmmenvirotech.com)
 Innovation technologies to turn waste into useful energy or products (new)
 Innovation technologies to create surplus from normal outputs (new)
 Innovation technologies to harness health-giving benefits from the environment
(new)
 Innovation technologies to rebalance the damage done to the environment
(new)
31

32. Technology – ESG Framework For AI
AI investing can be focused in a particular country, region or city or can
create impact in multiple countries or regions within the technology -
ESG framework
Environmental (E):
Biodiversity / land
Use carbon emissions
Energy usage
Raw material sourcing
Regulatory / legal risks
Supply Chain management
Waste & recycling
Water management
Weather events
Social (S):
Community relationship
Controversial business customer / relation / product
Diversity issues
Health & Safety
Human Capital Management
Human rights
Responsible marketing & R & D
Union Relations
 Governance (G):
Accountability
Anti-takeover Measures
Board Structure / Size
Bribery & Corruption
CEO Duality
Executive Compensation Scheme
Ownership Structure
Shareholders Rights
Transparency
Voting Procedures
Sectors
Healthcare
Clean Energy
Water & Sanitation
Housing
Education
Financial Services
Waste Management & Recycling (new)
R & D for above sectors (new)
32

33. STANDARDS, MONITORING, EVALUATION,
PRINCIPLES & INITIATIVES Global Impact Investing Rating System (GIIRS)
 Global Impact Investing Network (GIIN)
 Overseas Private Investment Corporation (OPIC)
 Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI)
 Interfaith Center for Corporate Responsibility (ICCR)
 Impact Reporting Investment Standards (IRIS)
 Islamic Financial Services Board (IFSB)
 SustainableAccounting Standards Board (SASB)
 Sustainability Supervisory Board (SSB)
 SocialVenture Network (SVN)
 Global Reporting Initiatives (GRI)
 United Nations Development Program (UNDP)
 United Nations Environment Program Financial Institutions (UNEPFI)
 United Nations Principles for Responsible Investing (UNPRI)
 United Nations Global Compact (UNGC)
 International AI Initiatives (G7 nations) 33

34. INTERNATIONAL AI INITIATIVES – GROUP OF
SEVEN (G7)
1. Promote human centricAI
2. Promote investments in R & D
3. Support education, training & re-skilling for workforce
4. Support and involve the marginalized
5. AdvanceAI innovation
6. Promote trust in AI
7. Promote use of AI by SMEs
8. PromoteAI to develop skills for AI
9. Encourage investment in AI
10. Encourage initiatives to improve digital security and develop codes of conduct
11. Ensure the development of frameworks for privacy and data protection
12. Support open market environment for free flow of data, while respecting privacy and data
protection 34

35. CONCLUSION
￮ Recent emergence of SSEs that differ in form
and function with few examples
￮ None from the AI community?
￮ Necessitate extensive R & D activities,
development of strategic frameworks and
related documentation (SOPs)
￮ SPONSOR proposed to be the Global
Advocate of AI Social Stock Exchange by
merging innovative Finance & Impact
Investing Concepts / AI Principles & Apps
￮ SPONSOR proposed to spearhead the first
AISSE Academy / COE for the world!
￮ SPONSOR proposed to be the leading
pioneer Incubator & Accelerator of AISSE
￮ Approve the working grant / seed capital of
USD 25,000 (one-time) and additional funds
as deemed fit for originator of business case
for research & development activities and
start up 35

36. MINORACCOMPLISHMENTS
 International & local award-winning writer (Commonwealth
Navies & Anugerah Usman Awang)
 Author: Servant Leadership 1.0 – Serve to Lead & Servant
Leadership 2.0 – Principles of SERVANTHOOD. 3.0 –
Principles of SERVITUDE (new) - with precepts from major
Holy Books) published in major dailies and online portals
 Author: Islamic & Christian Financial Concepts, other Wealth
Management /Thematic Concepts. Also “- 12 Strategic
Initiatives for the Palm Oil &Timber Industries (2 papers)
 Author:The world’s first Christian & Islamic Social Stock
Exchange & Global Islamic Finance &Tourism (G.I.F.T.) body
 Chief Editor & Event Organizer, LEADERS publication
 Former Columnist with the New StraitsTimes –Property
Column with published articles on Wealth Creation,
Investment and Property in general
 Former HOD / Editor – Sales & Niche Publications (Halal, Oil
& Gas,Tourist, Agriculture publications & Internet Solutions.
Secured 10 Millions deal forTM Publications from Tourism
Ministry
 Certified Master Financial Planner (MFP), USA
 Certified Professional Landlord (CPL), USA
 Certified Islamic Estate Planner (IEP), Malaysia
36

37. 37
Thanks…TheNextStep?
Any questions?
You can find me at: johnnymoi7@yahoo.com
ORor 012 371 0788