Governments Are Investing Billions on Their Own Independent AI Technologies – Is It a Big Waste of Money?

Worldwide, governments are channeling massive amounts into what is known as “sovereign AI” – building national AI models. Starting with the city-state of Singapore to Malaysia and the Swiss Confederation, nations are vying to create AI that comprehends local languages and cultural nuances.

The Global AI Battle

This trend is a component of a larger worldwide contest led by major corporations from the United States and the People's Republic of China. Whereas companies like OpenAI and a social media giant invest massive resources, developing countries are likewise taking their own bets in the AI field.

But given such vast sums at stake, can smaller nations secure notable advantages? According to a specialist from a well-known research institute, Except if you’re a wealthy government or a large company, it’s quite a challenge to develop an LLM from nothing.”

Defence Concerns

Numerous states are unwilling to rely on overseas AI systems. Across India, for example, US-built AI solutions have sometimes proven inadequate. One case featured an AI agent deployed to instruct pupils in a remote area – it communicated in the English language with a strong Western inflection that was nearly-incomprehensible for native students.

Then there’s the state security factor. In the Indian military authorities, employing certain external models is seen as not permissible. According to a founder noted, “It could have some arbitrary data source that might say that, oh, a certain region is separate from India … Using that particular system in a defence setup is a major risk.”

He added, “I have spoken to people who are in security. They want to use AI, but, setting aside specific systems, they prefer not to rely on Western technologies because details may be transferred outside the country, and that is absolutely not OK with them.”

National Projects

Consequently, a number of nations are backing local projects. An example such a initiative is being developed in the Indian market, wherein a firm is working to develop a domestic LLM with public funding. This effort has allocated roughly $1.25bn to AI development.

The developer envisions a AI that is less resource-intensive than leading systems from US and Chinese firms. He states that the nation will have to make up for the financial disparity with talent. Based in India, we do not possess the advantage of pouring billions of dollars into it,” he says. “How do we vie with say the $100 or $300 or $500bn that the United States is pumping in? I think that is where the core expertise and the strategic thinking is essential.”

Regional Focus

In Singapore, a public project is backing language models trained in south-east Asia’s native tongues. These dialects – such as the Malay language, Thai, the Lao language, Indonesian, Khmer and others – are commonly inadequately covered in US and Chinese LLMs.

It is my desire that the individuals who are creating these national AI systems were informed of how rapidly and the speed at which the cutting edge is moving.

An executive participating in the program says that these tools are created to enhance larger models, rather than substituting them. Platforms such as ChatGPT and another major AI system, he comments, commonly struggle with native tongues and culture – interacting in unnatural the Khmer language, as an example, or proposing meat-containing dishes to Malay consumers.

Building native-tongue LLMs enables local governments to incorporate local context – and at least be “knowledgeable adopters” of a powerful technology built in other countries.

He continues, I am cautious with the word sovereign. I think what we’re aiming to convey is we want to be more adequately included and we aim to grasp the capabilities” of AI platforms.

Multinational Collaboration

Regarding states trying to establish a position in an escalating worldwide landscape, there’s a different approach: team up. Analysts connected to a well-known university put forward a public AI company allocated across a consortium of middle-income countries.

They call the initiative “an AI equivalent of Airbus”, in reference to Europe’s effective strategy to develop a rival to Boeing in the mid-20th century. Their proposal would see the establishment of a government-supported AI organization that would combine the capabilities of several nations’ AI projects – such as the United Kingdom, the Kingdom of Spain, the Canadian government, Germany, the nation of Japan, Singapore, the Republic of Korea, France, Switzerland and the Kingdom of Sweden – to establish a competitive rival to the US and Chinese major players.

The primary researcher of a paper setting out the proposal states that the idea has drawn the consideration of AI officials of at least a few countries to date, as well as multiple national AI organizations. Although it is now focused on “middle powers”, developing countries – the nation of Mongolia and Rwanda included – have also shown curiosity.

He elaborates, “Nowadays, I think it’s simply reality there’s less trust in the assurances of the existing American government. Experts are questioning for example, is it safe to rely on these technologies? Suppose they choose to

Sergio Parks
Sergio Parks

A passionate writer and life coach dedicated to helping others achieve their full potential through actionable advice.