Governments Are Spending Huge Amounts on Their Own Independent AI Solutions – Is It a Significant Drain of Money?

Around the globe, nations are investing enormous sums into the concept of “sovereign AI” – developing domestic AI systems. From the city-state of Singapore to Malaysia and the Swiss Confederation, states are vying to develop AI that grasps native tongues and cultural nuances.

The Worldwide AI Arms Race

This initiative is a component of a broader worldwide competition spearheaded by tech giants from the US and China. Whereas organizations like OpenAI and Meta pour enormous capital, middle powers are also placing sovereign investments in the AI landscape.

Yet given such tremendous sums at stake, is it possible for developing nations attain meaningful advantages? According to a specialist from a prominent policy organization, If not you’re a wealthy nation or a big company, it’s a significant burden to create an LLM from nothing.”

Security Considerations

Many states are hesitant to use external AI technologies. In India, for instance, Western-developed AI systems have occasionally proven inadequate. An illustrative case featured an AI agent deployed to teach students in a remote village – it interacted in the English language with a strong American accent that was nearly-incomprehensible for local users.

Additionally there’s the state security aspect. In India’s security agencies, employing particular external systems is seen as inadmissible. As one entrepreneur noted, “It could have some random learning material that may state that, such as, a certain region is separate from India … Employing that certain AI in a military context is a big no-no.”

He continued, I’ve discussed with individuals who are in security. They want to use AI, but, setting aside specific systems, they don’t even want to rely on American systems because data could travel overseas, and that is absolutely not OK with them.”

Homegrown Efforts

As a result, a number of nations are funding national initiatives. One such a initiative is in progress in the Indian market, where a company is attempting to develop a national LLM with government support. This initiative has committed approximately 1.25 billion dollars to machine learning progress.

The founder envisions a model that is significantly smaller than top-tier models from US and Chinese corporations. He explains that India will have to compensate for the financial disparity with talent. Located in India, we lack the advantage of investing billions of dollars into it,” he says. “How do we compete versus such as the $100 or $300 or $500bn that the US is devoting? I think that is where the fundamental knowledge and the brain game comes in.”

Regional Emphasis

Across Singapore, a state-backed program is funding language models developed in the region's native tongues. Such tongues – for example the Malay language, the Thai language, the Lao language, Indonesian, the Khmer language and more – are commonly poorly represented in American and Asian LLMs.

It is my desire that the experts who are building these national AI tools were informed of the extent to which and just how fast the cutting edge is moving.

A senior director involved in the program explains that these tools are created to supplement larger AI, as opposed to substituting them. Platforms such as ChatGPT and Gemini, he states, often find it challenging to handle regional languages and cultural aspects – interacting in awkward the Khmer language, as an example, or suggesting non-vegetarian dishes to Malay individuals.

Creating regional-language LLMs allows state agencies to code in local context – and at least be “knowledgeable adopters” of a sophisticated system created in other countries.

He adds, “I’m very careful with the term national. I think what we’re trying to say is we want to be more accurately reflected and we aim to understand the features” of AI systems.

Multinational Partnership

For nations seeking to establish a position in an growing international arena, there’s an alternative: join forces. Researchers affiliated with a well-known policy school recently proposed a public AI company allocated across a alliance of developing states.

They term the initiative “an AI equivalent of Airbus”, in reference to Europe’s effective initiative to build a alternative to a major aerospace firm in the mid-20th century. Their proposal would involve the creation of a state-backed AI entity that would combine the assets of various nations’ AI initiatives – for example the UK, Spain, Canada, the Federal Republic of Germany, the nation of Japan, the Republic of Singapore, South Korea, the French Republic, Switzerland and Sweden – to create a competitive rival to the American and Asian leaders.

The lead author of a report setting out the concept states that the concept has gained the interest of AI ministers of at least a few states up to now, in addition to multiple sovereign AI firms. Although it is presently targeting “middle powers”, less wealthy nations – Mongolia and Rwanda included – have also shown curiosity.

He explains, “Nowadays, I think it’s an accepted truth there’s diminished faith in the commitments of the present American government. Individuals are wondering such as, can I still depend on these technologies? In case they opt to

Adam Morgan
Adam Morgan

Tech enthusiast and digital strategist with a passion for driving innovation and helping businesses thrive in the digital age.