Nations Are Investing Billions on National ‘Sovereign’ AI Solutions – Is It a Major Misuse of Money?

Worldwide, nations are channeling enormous sums into what's termed “sovereign AI” – building their own machine learning systems. From the city-state of Singapore to the nation of Malaysia and Switzerland, nations are competing to build AI that comprehends local languages and cultural nuances.

The International AI Competition

This trend is a component of a broader international race dominated by tech giants from the United States and the People's Republic of China. While companies like a leading AI firm and a social media giant invest substantial funds, middle powers are also making sovereign investments in the artificial intelligence domain.

Yet amid such vast sums in play, can less wealthy states attain meaningful advantages? As noted by a specialist from a well-known policy organization, “Unless you’re a wealthy nation or a large company, it’s a substantial burden to build an LLM from nothing.”

National Security Concerns

Many states are hesitant to use external AI systems. Across India, for example, American-made AI solutions have occasionally been insufficient. A particular case featured an AI assistant deployed to educate students in a remote village – it interacted in the English language with a thick American accent that was hard to understand for regional listeners.

Furthermore there’s the state security factor. In India’s security agencies, using specific external models is considered unacceptable. Per an founder commented, “It could have some random data source that may state that, such as, a certain region is not part of India … Employing that particular system in a military context is a major risk.”

He further stated, “I have spoken to experts who are in the military. They wish to use AI, but, setting aside certain models, they are reluctant to rely on US platforms because data may be transferred overseas, and that is totally inappropriate with them.”

Homegrown Projects

Consequently, several countries are backing domestic ventures. One such a effort is underway in India, in which an organization is striving to develop a national LLM with public support. This project has committed about $1.25bn to AI development.

The developer imagines a system that is more compact than premier models from US and Chinese tech companies. He states that the country will have to make up for the financial disparity with skill. “Being in India, we don’t have the option of allocating billions of dollars into it,” he says. “How do we compete against say the enormous investments that the America is investing? I think that is the point at which the fundamental knowledge and the strategic thinking comes in.”

Local Emphasis

In Singapore, a government initiative is supporting language models developed in local local dialects. Such dialects – such as the Malay language, Thai, the Lao language, Bahasa Indonesia, Khmer and additional ones – are often poorly represented in American and Asian LLMs.

It is my desire that the people who are creating these national AI models were informed of the extent to which and how quickly the leading edge is progressing.

A senior director participating in the program explains that these models are designed to complement larger systems, rather than substituting them. Tools such as ChatGPT and Gemini, he says, often have difficulty with regional languages and cultural aspects – speaking in stilted the Khmer language, as an example, or recommending pork-based dishes to Malay users.

Developing regional-language LLMs permits national authorities to incorporate cultural nuance – and at least be “smart consumers” of a sophisticated tool developed elsewhere.

He adds, I am prudent with the term sovereign. I think what we’re attempting to express is we want to be better represented and we aim to comprehend the features” of AI platforms.

Cross-Border Partnership

Regarding nations attempting to carve out a role in an escalating global market, there’s a different approach: collaborate. Researchers affiliated with a prominent policy school have suggested a public AI company shared among a group of developing states.

They term the project “Airbus for AI”, in reference to Europe’s productive strategy to create a competitor to Boeing in the mid-20th century. This idea would involve the formation of a state-backed AI entity that would pool the capabilities of different states’ AI initiatives – for example the UK, the Kingdom of Spain, the Canadian government, Germany, Japan, the Republic of Singapore, South Korea, France, the Swiss Confederation and the Kingdom of Sweden – to establish a viable alternative to the US and Chinese giants.

The lead author of a paper describing the initiative notes that the proposal has drawn the interest of AI officials of at least a few nations so far, as well as a number of national AI organizations. While it is now focused on “mid-sized nations”, developing countries – Mongolia and the Republic of Rwanda among them – have additionally shown curiosity.

He comments, In today’s climate, I think it’s simply reality there’s reduced confidence in the commitments of the existing White House. People are asking such as, is it safe to rely on any of this tech? In case they opt to

Michele Murray
Michele Murray

A seasoned digital marketer and content creator with over a decade of experience in building engaging blogs and driving organic traffic.