Nations Are Investing Huge Amounts on National Independent AI Systems – Could It Be a Big Waste of Resources?

Internationally, governments are pouring hundreds of billions into the concept of “sovereign AI” – building their own AI systems. Starting with Singapore to the nation of Malaysia and Switzerland, nations are vying to develop AI that grasps local languages and local customs.

The International AI Arms Race

This initiative is a component of a broader global contest spearheaded by large firms from the America and the People's Republic of China. Whereas firms like OpenAI and Meta pour enormous resources, developing countries are likewise making sovereign bets in the AI field.

Yet given such huge sums involved, is it possible for less wealthy countries achieve meaningful benefits? As noted by a analyst from a well-known research institute, “Unless you’re a affluent state or a large firm, it’s quite a challenge to create an LLM from the ground up.”

Security Issues

Numerous countries are unwilling to use overseas AI technologies. Throughout the Indian subcontinent, for instance, US-built AI solutions have sometimes fallen short. A particular instance saw an AI assistant employed to teach pupils in a remote village – it interacted in English with a pronounced US accent that was difficult to follow for native users.

Then there’s the defence factor. For the Indian military authorities, relying on certain external models is viewed inadmissible. As one founder explained, There might be some random learning material that might say that, for example, a certain region is separate from India … Using that certain model in a military context is a serious concern.”

He added, I’ve discussed with individuals who are in the military. They want to use AI, but, forget about certain models, they don’t even want to rely on Western systems because information could travel overseas, and that is absolutely not OK with them.”

Homegrown Projects

As a result, some states are funding national initiatives. One such project is underway in India, wherein a company is attempting to create a sovereign LLM with government backing. This project has allocated approximately $1.25bn to AI development.

The expert foresees a model that is significantly smaller than leading tools from American and Asian tech companies. He states that the nation will have to offset the funding gap with talent. Located in India, we do not possess the advantage of pouring billions of dollars into it,” he says. “How do we vie with such as the enormous investments that the United States is pumping in? I think that is where the core expertise and the strategic thinking is essential.”

Local Priority

Throughout the city-state, a public project is supporting language models educated in south-east Asia’s regional languages. These particular dialects – such as Malay, the Thai language, Lao, Indonesian, the Khmer language and additional ones – are frequently inadequately covered in US and Chinese LLMs.

I wish the people who are creating these sovereign AI models were aware of how rapidly and the speed at which the leading edge is advancing.

An executive involved in the program says that these systems are designed to enhance more extensive systems, instead of replacing them. Tools such as ChatGPT and Gemini, he comments, commonly have difficulty with local dialects and local customs – interacting in stilted the Khmer language, for example, or proposing pork-based meals to Malay users.

Developing regional-language LLMs permits state agencies to include cultural sensitivity – and at least be “smart consumers” of a powerful tool created elsewhere.

He further explains, “I’m very careful with the term national. I think what we’re trying to say is we want to be more adequately included and we aim to comprehend the features” of AI technologies.

Cross-Border Cooperation

Regarding countries attempting to establish a position in an growing international arena, there’s a different approach: collaborate. Experts associated with a well-known university put forward a state-owned AI venture distributed among a alliance of middle-income nations.

They term the proposal “an AI equivalent of Airbus”, in reference to the European successful initiative to create a alternative to a major aerospace firm in the 1960s. Their proposal would see the creation of a public AI company that would merge the resources of different countries’ AI programs – such as the UK, the Kingdom of Spain, the Canadian government, Germany, the nation of Japan, the Republic of Singapore, the Republic of Korea, the French Republic, the Swiss Confederation and Sweden – to establish a strong competitor to the Western and Eastern leaders.

The main proponent of a report describing the proposal notes that the concept has drawn the interest of AI ministers of at least three countries so far, as well as multiple sovereign AI companies. Although it is currently focused on “mid-sized nations”, emerging economies – Mongolia and Rwanda included – have likewise indicated willingness.

He elaborates, In today’s climate, I think it’s just a fact there’s reduced confidence in the assurances of this current US administration. People are asking for example, can I still depend on these technologies? In case they decide to

Kristi Conway
Kristi Conway

A tech enthusiast and UX designer with over a decade of experience in creating user-centered digital products and sharing insights on emerging technologies.