Nations Are Allocating Billions on Domestic State-Controlled AI Solutions – Is It a Big Waste of Money?

Worldwide, states are channeling enormous sums into the concept of “sovereign AI” – creating their own machine learning systems. Starting with Singapore to Malaysia and Switzerland, countries are vying to build AI that understands regional dialects and local customs.

The International AI Competition

This initiative is an element in a broader international contest dominated by major corporations from the United States and the People's Republic of China. While firms like OpenAI and Meta allocate substantial funds, mid-sized nations are also taking independent gambles in the AI field.

Yet amid such vast amounts in play, can smaller nations achieve significant gains? As stated by a analyst from a prominent thinktank, Except if you’re a rich government or a major company, it’s a significant challenge to develop an LLM from nothing.”

Security Concerns

Many nations are hesitant to rely on overseas AI technologies. In India, for instance, US-built AI solutions have sometimes fallen short. An illustrative example involved an AI assistant used to educate pupils in a distant village – it communicated in the English language with a thick American accent that was hard to understand for local users.

Furthermore there’s the national security factor. In the Indian security agencies, using certain international models is considered inadmissible. As one entrepreneur explained, There might be some random training dataset that could claim that, oh, Ladakh is outside of India … Utilizing that specific model in a security environment is a serious concern.”

He further stated, I’ve consulted people who are in the military. They wish to use AI, but, forget about specific systems, they don’t even want to rely on Western systems because data could travel overseas, and that is completely unacceptable with them.”

Domestic Initiatives

Consequently, some countries are supporting domestic ventures. A particular such initiative is being developed in India, where an organization is attempting to build a sovereign LLM with state funding. This project has allocated about $1.25bn to machine learning progress.

The developer imagines a system that is more compact than premier tools from American and Asian tech companies. He states that India will have to compensate for the funding gap with skill. Based in India, we lack the advantage of investing billions of dollars into it,” he says. “How do we vie with for example the enormous investments that the United States is investing? I think that is where the core expertise and the brain game plays a role.”

Native Focus

Across Singapore, a public project is backing language models trained in the region's local dialects. These particular dialects – such as Malay, Thai, Lao, Bahasa Indonesia, the Khmer language and more – are often underrepresented in US and Chinese LLMs.

I hope the individuals who are creating these sovereign AI systems were conscious of the extent to which and just how fast the cutting edge is progressing.

A senior director involved in the initiative explains that these models are designed to enhance larger AI, as opposed to replacing them. Systems such as ChatGPT and Gemini, he says, commonly have difficulty with local dialects and local customs – communicating in unnatural the Khmer language, for example, or suggesting non-vegetarian meals to Malay individuals.

Building local-language LLMs enables state agencies to include cultural sensitivity – and at least be “knowledgeable adopters” of a advanced tool built overseas.

He further explains, “I’m very careful with the term national. I think what we’re aiming to convey is we wish to be better represented and we wish to grasp the abilities” of AI platforms.

Multinational Cooperation

For nations seeking to find their place in an escalating international arena, there’s a different approach: team up. Researchers associated with a prominent policy school have suggested a state-owned AI venture shared among a group of developing nations.

They refer to the project “a collaborative AI effort”, drawing inspiration from the European successful strategy to build a rival to Boeing in the 1960s. The plan would involve the formation of a state-backed AI entity that would combine the resources of various nations’ AI projects – such as the UK, Spain, the Canadian government, Germany, the nation of Japan, Singapore, South Korea, the French Republic, Switzerland and the Kingdom of Sweden – to establish a competitive rival to the US and Chinese major players.

The primary researcher of a paper describing the proposal states that the concept has attracted the attention of AI ministers of at least a few states up to now, in addition to several national AI firms. While it is presently targeting “developing countries”, developing countries – Mongolia and Rwanda for example – have likewise shown curiosity.

He elaborates, In today’s climate, I think it’s an accepted truth there’s reduced confidence in the promises of the existing American government. Experts are questioning like, should we trust such systems? Suppose they opt to

Daniel Taylor
Daniel Taylor

A passionate writer and life coach dedicated to helping others unlock their potential through mindful practices.