Countries Are Spending Billions on National State-Controlled AI Technologies – Might This Be a Big Waste of Funds?

Internationally, nations are pouring hundreds of billions into what's termed “sovereign AI” – developing their own machine learning systems. From Singapore to the nation of Malaysia and Switzerland, nations are racing to develop AI that comprehends local languages and cultural specifics.

The International AI Competition

This movement is an element in a broader international competition led by large firms from the United States and China. While companies like a leading AI firm and Meta invest massive resources, developing countries are likewise making sovereign bets in the AI field.

Yet amid such huge sums at stake, can less wealthy nations achieve notable gains? According to an expert from a well-known thinktank, “Unless you’re a rich nation or a large corporation, it’s quite a hardship to build an LLM from the ground up.”

Defence Considerations

A lot of states are hesitant to depend on foreign AI technologies. Across India, as an example, Western-developed AI tools have at times proven inadequate. A particular case involved an AI agent used to instruct pupils in a distant community – it interacted in English with a strong American accent that was difficult to follow for local users.

Then there’s the defence aspect. In the Indian military authorities, using certain external models is viewed inadmissible. As one entrepreneur explained, It's possible it contains some random learning material that might say that, such as, Ladakh is not part of India … Using that certain system in a military context is a serious concern.”

He continued, I’ve consulted experts who are in defence. They aim to use AI, but, forget about particular tools, they prefer not to rely on Western systems because information might go overseas, and that is absolutely not OK with them.”

Homegrown Initiatives

Consequently, several states are backing national projects. One this project is being developed in India, where a company is working to build a sovereign LLM with public funding. This initiative has allocated about $1.25bn to AI development.

The expert imagines a system that is more compact than leading systems from American and Asian corporations. He states that the country will have to make up for the funding gap with talent. Based in India, we do not possess the luxury of allocating massive funds into it,” he says. “How do we contend with for example the enormous investments that the United States is devoting? I think that is where the key skills and the intellectual challenge plays a role.”

Local Emphasis

In Singapore, a government initiative is backing machine learning tools educated in local local dialects. Such languages – including Malay, the Thai language, the Lao language, Indonesian, Khmer and more – are often poorly represented in US and Chinese LLMs.

I wish the experts who are building these independent AI tools were conscious of just how far and the speed at which the frontier is progressing.

A leader participating in the program explains that these systems are intended to enhance larger AI, instead of substituting them. Tools such as ChatGPT and Gemini, he says, frequently find it challenging to handle native tongues and culture – speaking in stilted Khmer, for example, or recommending pork-based meals to Malay individuals.

Creating native-tongue LLMs enables state agencies to include cultural nuance – and at least be “knowledgeable adopters” of a powerful tool created overseas.

He further explains, I am prudent with the term independent. I think what we’re aiming to convey is we wish to be better represented and we aim to understand the capabilities” of AI technologies.

Cross-Border Partnership

Regarding states trying to find their place in an growing global market, there’s another possibility: join forces. Researchers affiliated with a respected university put forward a public AI company distributed among a consortium of middle-income countries.

They call the initiative “an AI equivalent of Airbus”, drawing inspiration from Europe’s productive strategy to develop a alternative to a major aerospace firm in the mid-20th century. This idea would involve the creation of a public AI company that would combine the capabilities of different countries’ AI projects – including the United Kingdom, the Kingdom of Spain, the Canadian government, the Federal Republic of Germany, the nation of Japan, the Republic of Singapore, South Korea, France, Switzerland and Sweden – to develop a viable alternative to the American and Asian leaders.

The main proponent of a paper outlining the initiative says that the proposal has gained the attention of AI officials of at least several countries up to now, as well as a number of national AI organizations. Although it is now focused on “mid-sized nations”, developing countries – the nation of Mongolia and the Republic of Rwanda for example – have additionally shown curiosity.

He comments, In today’s climate, I think it’s just a fact there’s less trust in the assurances of this current American government. Individuals are wondering such as, can I still depend on these technologies? What if they choose to

Matthew Guerra
Matthew Guerra

Award-winning journalist with a focus on international affairs and digital media trends.