Countries Are Investing Billions on National State-Controlled AI Solutions – Might This Be a Significant Drain of Money?

Worldwide, governments are channeling hundreds of billions into the concept of “sovereign AI” – building national AI models. Starting with Singapore to the nation of Malaysia and Switzerland, countries are competing to build AI that grasps native tongues and cultural specifics.

The International AI Battle

This trend is part of a wider worldwide competition led by tech giants from the United States and the People's Republic of China. Whereas organizations like OpenAI and a social media giant invest enormous resources, mid-sized nations are likewise placing their own bets in the AI field.

But given such huge amounts at stake, can smaller countries attain meaningful benefits? As noted by an expert from a well-known thinktank, “Unless you’re a wealthy government or a large firm, it’s a significant burden to develop an LLM from scratch.”

Defence Considerations

A lot of nations are hesitant to use foreign AI systems. Across India, for example, American-made AI solutions have occasionally proven inadequate. A particular instance saw an AI agent employed to instruct learners in a remote village – it interacted in the English language with a pronounced Western inflection that was hard to understand for local users.

Then there’s the state security factor. In the Indian security agencies, using specific international models is viewed inadmissible. According to a founder explained, It's possible it contains some arbitrary training dataset that could claim that, such as, a certain region is not part of India … Employing that particular model in a security environment is a big no-no.”

He further stated, I’ve consulted experts who are in security. They want to use AI, but, disregarding particular tools, they don’t even want to rely on Western systems because details could travel abroad, and that is completely unacceptable with them.”

National Initiatives

In response, some nations are funding local ventures. A particular such initiative is underway in India, wherein a company is striving to create a national LLM with government support. This project has allocated approximately $1.25bn to AI development.

The expert imagines a model that is more compact than premier models from Western and Eastern firms. He states that India will have to offset the resource shortfall with expertise. Based in India, we do not possess the option of pouring massive funds into it,” he says. “How do we contend versus for example the $100 or $300 or $500bn that the US is pumping in? I think that is where the core expertise and the strategic thinking plays a role.”

Regional Emphasis

Across Singapore, a government initiative is supporting machine learning tools trained in the region's local dialects. Such languages – including Malay, the Thai language, the Lao language, Bahasa Indonesia, Khmer and more – are commonly poorly represented in American and Asian LLMs.

I hope the individuals who are building these national AI models were aware of the extent to which and just how fast the cutting edge is advancing.

A leader involved in the initiative notes that these models are designed to enhance more extensive models, instead of displacing them. Platforms such as a popular AI tool and Gemini, he states, frequently struggle with local dialects and culture – interacting in unnatural Khmer, as an example, or recommending pork-based meals to Malay individuals.

Developing native-tongue LLMs allows local governments to incorporate local context – and at least be “informed users” of a advanced technology developed elsewhere.

He continues, I am cautious with the term sovereign. I think what we’re trying to say is we want to be more accurately reflected and we wish to comprehend the capabilities” of AI technologies.

Multinational Cooperation

For countries seeking to establish a position in an escalating worldwide landscape, there’s another possibility: join forces. Analysts associated with a prominent policy school put forward a state-owned AI venture shared among a group of emerging states.

They call the project “a collaborative AI effort”, modeled after Europe’s productive play to create a rival to Boeing in the mid-20th century. The plan would entail the formation of a government-supported AI organization that would pool the assets of different states’ AI initiatives – including the United Kingdom, Spain, the Canadian government, the Federal Republic of Germany, the nation of Japan, the Republic of Singapore, South Korea, the French Republic, the Swiss Confederation and Sweden – to develop a competitive rival to the American and Asian leaders.

The lead author of a paper outlining the initiative says that the concept has gained the interest of AI leaders of at least three nations to date, in addition to a number of national AI organizations. Although it is presently centered on “developing countries”, developing countries – the nation of Mongolia and Rwanda included – have likewise indicated willingness.

He elaborates, In today’s climate, I think it’s an accepted truth there’s reduced confidence in the promises of the existing US administration. Individuals are wondering for example, is it safe to rely on such systems? What if they opt to

Natalie Rodriguez
Natalie Rodriguez

A seasoned journalist with a passion for uncovering stories that matter, based in London.