Governments Are Investing Huge Amounts on Domestic State-Controlled AI Solutions – Is It a Big Waste of Resources?

Worldwide, states are pouring hundreds of billions into what is known as “sovereign AI” – building national AI models. From Singapore to the nation of Malaysia and the Swiss Confederation, states are competing to build AI that understands native tongues and cultural specifics.

The Global AI Competition

This initiative is part of a wider international competition led by tech giants from the US and China. While firms like a leading AI firm and Meta invest substantial funds, mid-sized nations are also making sovereign investments in the AI landscape.

But given such tremendous investments at stake, is it possible for less wealthy nations attain meaningful advantages? As noted by a specialist from a prominent policy organization, Except if you’re a wealthy state or a major firm, it’s a substantial burden to create an LLM from the ground up.”

National Security Considerations

A lot of nations are reluctant to use foreign AI systems. In India, for example, Western-developed AI tools have sometimes proven inadequate. One example saw an AI agent employed to instruct students in a remote area – it communicated in the English language with a thick Western inflection that was nearly-incomprehensible for regional listeners.

Furthermore there’s the defence dimension. For the Indian military authorities, relying on specific external systems is considered not permissible. Per an founder commented, There might be some arbitrary learning material that could claim that, oh, Ladakh is not part of India … Utilizing that particular system in a defence setup is a big no-no.”

He further stated, I’ve discussed with experts who are in defence. They wish to use AI, but, forget about specific systems, they don’t even want to rely on American platforms because details may be transferred overseas, and that is absolutely not OK with them.”

National Projects

Consequently, a number of nations are funding domestic initiatives. An example this initiative is in progress in the Indian market, wherein an organization is striving to create a domestic LLM with state backing. This project has allocated approximately a substantial sum to AI development.

The expert envisions a AI that is more compact than premier systems from US and Chinese tech companies. He states that the country will have to make up for the funding gap with expertise. Located in India, we do not possess the advantage of allocating huge sums into it,” he says. “How do we compete with say the $100 or $300 or $500bn that the US is investing? I think that is where the key skills and the intellectual challenge plays a role.”

Native Focus

Across Singapore, a government initiative is backing machine learning tools developed in the region's local dialects. Such dialects – for example Malay, Thai, Lao, Indonesian, Khmer and others – are often inadequately covered in US and Chinese LLMs.

I wish the individuals who are creating these national AI systems were informed of just how far and how quickly the cutting edge is advancing.

A senior director engaged in the program notes that these systems are intended to supplement bigger models, instead of replacing them. Tools such as a popular AI tool and Gemini, he says, often have difficulty with local dialects and local customs – communicating in awkward Khmer, for instance, or proposing pork-based recipes to Malaysian individuals.

Creating local-language LLMs enables national authorities to include cultural nuance – and at least be “knowledgeable adopters” of a powerful tool developed elsewhere.

He adds, I am prudent with the word independent. I think what we’re attempting to express is we wish to be more accurately reflected and we want to grasp the capabilities” of AI platforms.

International Collaboration

For countries seeking to carve out a role in an intensifying global market, there’s another possibility: team up. Researchers affiliated with a prominent institution recently proposed a government-backed AI initiative shared among a group of developing nations.

They call the project “Airbus for AI”, in reference to the European effective initiative to build a alternative to Boeing in the mid-20th century. This idea would entail the formation of a public AI company that would pool the capabilities of various nations’ AI programs – such as the United Kingdom, the Kingdom of Spain, the Canadian government, the Federal Republic of Germany, the nation of Japan, Singapore, South Korea, the French Republic, the Swiss Confederation and Sweden – to establish a viable alternative to the US and Chinese giants.

The primary researcher of a paper outlining the concept states that the proposal has drawn the interest of AI leaders of at least three nations to date, in addition to multiple sovereign AI organizations. While it is currently focused on “mid-sized nations”, developing countries – the nation of Mongolia and Rwanda for example – have additionally expressed interest.

He elaborates, In today’s climate, I think it’s just a fact there’s reduced confidence in the commitments of this current US administration. Experts are questioning for example, is it safe to rely on any of this tech? In case they decide to

Charles Miller
Charles Miller

Tech enthusiast and digital strategist with a passion for sharing actionable insights on emerging technologies.