Governments Are Allocating Huge Amounts on Domestic ‘Sovereign’ AI Systems – Is It a Big Waste of Funds?

Around the globe, governments are investing massive amounts into the concept of “sovereign AI” – developing domestic machine learning models. From Singapore to the nation of Malaysia and the Swiss Confederation, nations are competing to develop AI that understands local languages and local customs.

The International AI Competition

This trend is part of a broader worldwide race dominated by tech giants from the United States and the People's Republic of China. While companies like OpenAI and a social media giant allocate massive funds, mid-sized nations are additionally taking their own bets in the artificial intelligence domain.

However given such tremendous sums involved, can developing countries achieve meaningful advantages? As stated by a analyst from a prominent policy organization, “Unless you’re a rich state or a big corporation, it’s a significant hardship to create an LLM from the ground up.”

Security Concerns

A lot of countries are hesitant to use external AI technologies. In India, as an example, Western-developed AI systems have sometimes fallen short. One instance featured an AI tool employed to educate learners in a remote village – it interacted in the English language with a pronounced US accent that was hard to understand for local listeners.

Then there’s the defence factor. For India’s military authorities, employing specific foreign AI tools is considered inadmissible. Per an entrepreneur explained, “It could have some random training dataset that might say that, oh, a certain region is outside of India … Employing that particular system in a defence setup is a serious concern.”

He added, I’ve discussed with individuals who are in the military. They wish to use AI, but, disregarding certain models, they prefer not to rely on Western technologies because information could travel overseas, and that is completely unacceptable with them.”

Domestic Initiatives

In response, a number of countries are supporting local ventures. An example such a effort is underway in India, in which an organization is working to develop a domestic LLM with state backing. This effort has committed roughly 1.25 billion dollars to AI development.

The developer imagines a AI that is less resource-intensive than premier models from American and Asian tech companies. He notes that India will have to make up for the resource shortfall with talent. “Being in India, we do not possess the option of investing massive funds into it,” he says. “How do we compete against such as the enormous investments that the United States is investing? I think that is the point at which the key skills and the intellectual challenge plays a role.”

Regional Focus

In Singapore, a government initiative is backing AI systems trained in south-east Asia’s local dialects. These tongues – for example Malay, Thai, Lao, Bahasa Indonesia, Khmer and additional ones – are often inadequately covered in American and Asian LLMs.

I wish the individuals who are creating these independent AI systems were conscious of how rapidly and how quickly the leading edge is moving.

A leader engaged in the project explains that these models are designed to complement larger models, instead of replacing them. Platforms such as ChatGPT and Gemini, he comments, often struggle with regional languages and cultural aspects – communicating in awkward Khmer, as an example, or proposing pork-based recipes to Malaysian users.

Creating regional-language LLMs allows local governments to include local context – and at least be “informed users” of a advanced system developed in other countries.

He further explains, I am cautious with the word national. I think what we’re trying to say is we aim to be better represented and we wish to comprehend the features” of AI systems.

Cross-Border Collaboration

Regarding nations trying to establish a position in an intensifying global market, there’s an alternative: collaborate. Analysts affiliated with a prominent policy school have suggested a public AI company distributed among a group of emerging states.

They refer to the project “Airbus for AI”, drawing inspiration from Europe’s effective play to create a rival to a major aerospace firm in the mid-20th century. The plan would involve the formation of a public AI company that would pool the resources of several states’ AI programs – such as the United Kingdom, Spain, the Canadian government, the Federal Republic of Germany, the nation of Japan, Singapore, South Korea, the French Republic, Switzerland and Sweden – to develop a strong competitor to the US and Chinese leaders.

The lead author of a paper setting out the concept states that the proposal has drawn the interest of AI ministers of at least several nations so far, in addition to multiple state AI companies. While it is now centered on “developing countries”, developing countries – the nation of Mongolia and Rwanda among them – have additionally shown curiosity.

He elaborates, In today’s climate, I think it’s an accepted truth there’s reduced confidence in the commitments of the present US administration. Experts are questioning such as, can I still depend on any of this tech? In case they opt to

Taylor Chandler
Taylor Chandler

Tech enthusiast and writer with a passion for exploring emerging technologies and their impact on society.