Nations Are Investing Huge Amounts on Domestic State-Controlled AI Systems – Might This Be a Significant Drain of Funds?

Around the globe, nations are pouring massive amounts into what is known as “sovereign AI” – creating national artificial intelligence systems. Starting with Singapore to Malaysia and the Swiss Confederation, countries are racing to develop AI that grasps regional dialects and cultural specifics.

The International AI Arms Race

This trend is a component of a larger international competition dominated by large firms from the United States and the People's Republic of China. While organizations like a leading AI firm and a social media giant pour massive funds, developing countries are likewise placing sovereign bets in the AI field.

Yet amid such tremendous amounts at stake, is it possible for less wealthy states secure meaningful gains? According to a specialist from a prominent policy organization, Except if you’re a rich nation or a major company, it’s a substantial burden to build an LLM from the ground up.”

National Security Concerns

A lot of countries are hesitant to rely on overseas AI systems. In India, for instance, US-built AI tools have sometimes proven inadequate. One instance saw an AI assistant deployed to teach students in a distant community – it interacted in the English language with a thick US accent that was nearly-incomprehensible for local students.

Furthermore there’s the state security dimension. For the Indian defence ministry, relying on particular external systems is seen as unacceptable. As one founder noted, There might be some arbitrary training dataset that may state that, for example, Ladakh is outside of India … Using that particular AI in a security environment is a major risk.”

He further stated, I’ve consulted people who are in the military. They wish to use AI, but, forget about certain models, they are reluctant to rely on US systems because data could travel abroad, and that is absolutely not OK with them.”

Domestic Projects

In response, some countries are funding national projects. An example such effort is underway in India, in which a company is attempting to create a domestic LLM with state support. This project has dedicated roughly 1.25 billion dollars to artificial intelligence advancement.

The expert foresees a system that is more compact than leading systems from American and Asian tech companies. He explains that the country will have to offset the funding gap with skill. Located in India, we don’t have the option of pouring huge sums into it,” he says. “How do we contend with such as the hundreds of billions that the US is pumping in? I think that is where the core expertise and the intellectual challenge comes in.”

Local Emphasis

Throughout the city-state, a public project is funding language models educated in south-east Asia’s local dialects. Such dialects – such as Malay, Thai, Lao, Bahasa Indonesia, Khmer and more – are frequently poorly represented in US and Chinese LLMs.

I hope the individuals who are building these sovereign AI systems were informed of the extent to which and just how fast the frontier is advancing.

A senior director engaged in the project explains that these models are created to supplement bigger systems, instead of displacing them. Systems such as a popular AI tool and another major AI system, he comments, commonly have difficulty with native tongues and local customs – speaking in awkward Khmer, for example, or recommending non-vegetarian meals to Malay users.

Developing native-tongue LLMs enables local governments to include local context – and at least be “informed users” of a powerful technology created in other countries.

He continues, “I’m very careful with the term independent. I think what we’re attempting to express is we aim to be better represented and we aim to understand the capabilities” of AI systems.

International Collaboration

Regarding countries seeking to establish a position in an escalating worldwide landscape, there’s another possibility: team up. Experts associated with a respected institution have suggested a government-backed AI initiative distributed among a group of middle-income states.

They refer to the proposal “a collaborative AI effort”, in reference to the European productive strategy to build a rival to Boeing in the mid-20th century. This idea would involve the formation of a government-supported AI organization that would combine the assets of various states’ AI initiatives – for example the United Kingdom, the Kingdom of Spain, the Canadian government, Germany, the nation of Japan, the Republic of Singapore, the Republic of Korea, France, Switzerland and the Kingdom of Sweden – to establish a viable alternative to the American and Asian major players.

The primary researcher of a paper outlining the initiative notes that the proposal has attracted the consideration of AI leaders of at least several nations to date, as well as a number of state AI organizations. While it is presently targeting “middle powers”, developing countries – the nation of Mongolia and Rwanda for example – have likewise expressed interest.

He elaborates, “Nowadays, I think it’s simply reality there’s reduced confidence in the promises of the existing US administration. Experts are questioning for example, is it safe to rely on such systems? In case they opt to

Dwayne Willis
Dwayne Willis

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