Nations Are Allocating Billions on Their Own State-Controlled AI Solutions – Could It Be a Major Misuse of Money?

Internationally, governments are channeling enormous sums into what is known as “sovereign AI” – building domestic AI technologies. Starting with Singapore to Malaysia and Switzerland, countries are competing to create AI that grasps regional dialects and cultural specifics.

The Worldwide AI Competition

This trend is part of a broader international competition dominated by large firms from the America and China. Whereas firms like OpenAI and Meta invest massive funds, mid-sized nations are also making sovereign investments in the AI landscape.

But with such vast investments involved, can less wealthy countries achieve significant advantages? As noted by an expert from an influential research institute, Except if you’re a affluent nation or a major company, it’s a significant burden to create an LLM from scratch.”

Security Concerns

Many nations are reluctant to use external AI models. In India, for instance, US-built AI tools have sometimes proven inadequate. One case saw an AI tool used to educate pupils in a distant community – it communicated in English with a pronounced American accent that was difficult to follow for native users.

Furthermore there’s the state security aspect. For India’s defence ministry, relying on specific international AI tools is viewed not permissible. According to a entrepreneur commented, It's possible it contains some arbitrary data source that could claim that, such as, Ladakh is separate from India … Using that specific system in a defence setup is a major risk.”

He added, I’ve consulted people who are in the military. They aim to use AI, but, forget about specific systems, they prefer not to rely on US systems because details might go overseas, and that is totally inappropriate with them.”

National Efforts

In response, several nations are backing domestic projects. An example such initiative is underway in the Indian market, where a company is attempting to build a national LLM with state support. This effort has dedicated approximately 1.25 billion dollars to AI development.

The expert foresees a model that is significantly smaller than premier tools from Western and Eastern firms. He states that the nation will have to make up for the resource shortfall with skill. Located in India, we do not possess the option of pouring massive funds into it,” he says. “How do we vie with say the hundreds of billions that the US is investing? I think that is where the fundamental knowledge and the intellectual challenge comes in.”

Local Emphasis

In Singapore, a state-backed program is backing AI systems developed in local regional languages. These particular languages – such as the Malay language, Thai, the Lao language, Bahasa Indonesia, the Khmer language and additional ones – are frequently inadequately covered in American and Asian LLMs.

I wish the people who are creating these national AI models were aware of the extent to which and the speed at which the frontier is advancing.

A leader involved in the initiative notes that these models are designed to enhance more extensive AI, rather than substituting them. Platforms such as a popular AI tool and another major AI system, he states, often find it challenging to handle local dialects and culture – speaking in unnatural the Khmer language, for instance, or proposing pork-based dishes to Malaysian users.

Building local-language LLMs enables national authorities to incorporate local context – and at least be “smart consumers” of a sophisticated system created in other countries.

He adds, I am cautious with the word national. I think what we’re attempting to express is we wish to be more accurately reflected and we aim to understand the capabilities” of AI technologies.

Multinational Collaboration

Regarding nations seeking to find their place in an escalating international arena, there’s another possibility: team up. Analysts connected to a respected policy school recently proposed a public AI company shared among a group of emerging nations.

They call the project “a collaborative AI effort”, in reference to the European successful play to develop a competitor to Boeing in the 1960s. Their proposal would see the establishment of a public AI company that would pool the resources of different nations’ AI programs – including the United Kingdom, Spain, Canada, Germany, Japan, the Republic of Singapore, the Republic of Korea, France, Switzerland and the Kingdom of Sweden – to create a viable alternative to the American and Asian leaders.

The main proponent of a study describing the concept states that the concept has drawn the consideration of AI leaders of at least three nations up to now, along with several sovereign AI companies. While it is currently focused on “mid-sized nations”, emerging economies – the nation of Mongolia and Rwanda among them – have also expressed interest.

He elaborates, “Nowadays, I think it’s an accepted truth there’s less trust in the promises of the present White House. Individuals are wondering such as, should we trust these technologies? What if they decide to

Emily Dudley
Emily Dudley

A tech enthusiast and journalist with over a decade of experience covering emerging technologies and digital innovations.