Countries Are Allocating Billions on Domestic State-Controlled AI Systems – Could It Be a Significant Drain of Funds?

Around the globe, nations are channeling hundreds of billions into what's termed “sovereign AI” – developing their own AI technologies. Starting with the city-state of Singapore to the nation of Malaysia and the Swiss Confederation, nations are racing to create AI that comprehends local languages and local customs.

The Global AI Arms Race

This movement is a component of a wider worldwide contest spearheaded by major corporations from the US and China. While organizations like OpenAI and Meta pour enormous resources, developing countries are also taking sovereign investments in the AI landscape.

However with such huge investments in play, can developing states achieve meaningful benefits? As stated by an expert from a prominent policy organization, Except if you’re a affluent nation or a big company, it’s a significant burden to develop an LLM from nothing.”

Defence Considerations

Many states are unwilling to rely on overseas AI technologies. Across India, for example, Western-developed AI tools have at times fallen short. One case involved an AI tool employed to instruct students in a distant area – it interacted in the English language with a pronounced American accent that was difficult to follow for local listeners.

Then there’s the state security factor. For the Indian security agencies, employing specific international AI tools is considered unacceptable. Per an developer commented, It's possible it contains some arbitrary training dataset that could claim that, oh, Ladakh is outside of India … Employing that certain model in a security environment is a big no-no.”

He added, I’ve consulted individuals who are in security. They aim to use AI, but, disregarding particular tools, they don’t even want to rely on US technologies because data may be transferred overseas, and that is completely unacceptable with them.”

National Projects

Consequently, a number of nations are supporting local initiatives. A particular such a initiative is in progress in the Indian market, where a company is striving to create a domestic LLM with government funding. This initiative has allocated roughly a substantial sum to AI development.

The founder imagines a system that is significantly smaller than top-tier systems from Western and Eastern firms. He notes that the country will have to compensate for the financial disparity with expertise. Based in India, we do not possess the option of pouring massive funds into it,” he says. “How do we compete with say the hundreds of billions that the America is devoting? I think that is where the fundamental knowledge and the strategic thinking comes in.”

Local Focus

Throughout the city-state, a public project is backing AI systems developed in south-east Asia’s local dialects. These tongues – such as Malay, Thai, Lao, Bahasa Indonesia, the Khmer language and others – are often poorly represented in Western-developed LLMs.

I hope the people who are developing these national AI systems were conscious of how rapidly and how quickly the cutting edge is moving.

An executive participating in the project notes that these systems are created to complement more extensive models, instead of replacing them. Systems such as ChatGPT and another major AI system, he says, frequently find it challenging to handle local dialects and culture – speaking in awkward the Khmer language, as an example, or proposing non-vegetarian recipes to Malay users.

Developing regional-language LLMs enables state agencies to incorporate cultural nuance – and at least be “knowledgeable adopters” of a sophisticated technology built elsewhere.

He adds, I am cautious with the concept independent. I think what we’re attempting to express is we want to be better represented and we wish to grasp the features” of AI systems.

Multinational Collaboration

For countries seeking to find their place in an growing global market, there’s another possibility: join forces. Researchers connected to a respected university recently proposed a state-owned AI venture allocated across a consortium of emerging countries.

They call the proposal “an AI equivalent of Airbus”, drawing inspiration from Europe’s successful strategy to create a rival to a major aerospace firm in the 1960s. Their proposal would entail the formation of a government-supported AI organization that would combine the assets of various states’ AI initiatives – including the United Kingdom, Spain, Canada, the Federal Republic of Germany, the nation of Japan, Singapore, South Korea, the French Republic, the Swiss Confederation and Sweden – to develop a competitive rival to the US and Chinese leaders.

The main proponent of a report setting out the proposal states that the concept has attracted the consideration of AI ministers of at least three countries to date, as well as a number of sovereign AI firms. While it is currently centered on “middle powers”, developing countries – the nation of Mongolia and Rwanda among them – have likewise shown curiosity.

He elaborates, “Nowadays, I think it’s an accepted truth there’s reduced confidence in the assurances of this current American government. People are asking like, should we trust these technologies? In case they opt to

Chad Thompson
Chad Thompson

A passionate gamer and tech enthusiast with over a decade of experience in reviewing and writing about the gaming industry.