Countries Are Spending Billions on Their Own State-Controlled AI Systems – Could It Be a Big Waste of Resources?

Around the globe, states are pouring enormous sums into what's termed “sovereign AI” – developing domestic AI models. From Singapore to the nation of Malaysia and the Swiss Confederation, states are competing to build AI that understands local languages and cultural nuances.

The Worldwide AI Battle

This trend is part of a larger global race spearheaded by major corporations from the US and China. While organizations like a leading AI firm and a social media giant pour enormous capital, middle powers are likewise placing independent gambles in the AI field.

Yet amid such huge sums in play, is it possible for developing nations secure notable advantages? As noted by a specialist from an influential policy organization, Except if you’re a rich state or a big corporation, it’s quite a hardship to build an LLM from scratch.”

Security Issues

A lot of nations are unwilling to use overseas AI systems. Across India, for example, Western-developed AI tools have at times fallen short. A particular instance featured an AI assistant employed to educate students in a isolated community – it communicated in the English language with a strong Western inflection that was difficult to follow for regional users.

Additionally there’s the national security factor. In India’s military authorities, employing specific external AI tools is considered not permissible. Per an founder noted, There might be some unvetted training dataset that could claim that, such as, Ladakh is separate from India … Using that particular model in a defence setup is a serious concern.”

He further stated, “I have spoken to experts who are in defence. They aim to use AI, but, setting aside particular tools, they don’t even want to rely on US technologies because details may be transferred overseas, and that is totally inappropriate with them.”

Homegrown Initiatives

Consequently, a number of nations are funding national initiatives. An example such effort is underway in the Indian market, wherein a company is attempting to build a domestic LLM with state backing. This effort has allocated about a substantial sum to AI development.

The expert foresees a model that is more compact than leading models from US and Chinese firms. He explains that the country will have to make up for the funding gap with expertise. Located in India, we lack the luxury of pouring massive funds into it,” he says. “How do we compete against for example the hundreds of billions that the America is devoting? I think that is where the key skills and the intellectual challenge is essential.”

Regional Emphasis

In Singapore, a state-backed program is supporting AI systems trained in the region's native tongues. Such tongues – such as Malay, the Thai language, Lao, Indonesian, the Khmer language and more – are commonly underrepresented in Western-developed LLMs.

I wish the individuals who are creating these sovereign AI tools were informed of just how far and just how fast the frontier is moving.

A senior director participating in the program says that these tools are designed to supplement larger systems, rather than replacing them. Systems such as ChatGPT and Gemini, he says, commonly find it challenging to handle regional languages and local customs – interacting in unnatural Khmer, for instance, or proposing meat-containing dishes to Malay users.

Building local-language LLMs allows state agencies to incorporate cultural sensitivity – and at least be “smart consumers” of a powerful tool developed in other countries.

He continues, I am prudent with the concept national. I think what we’re attempting to express is we want to be more accurately reflected and we wish to comprehend the features” of AI technologies.

Cross-Border Partnership

For states attempting to find their place in an growing global market, there’s another possibility: team up. Experts connected to a well-known university have suggested a state-owned AI venture shared among a alliance of middle-income states.

They refer to the project “an AI equivalent of Airbus”, modeled after Europe’s effective play to create a rival to Boeing in the 1960s. Their proposal would see the formation of a government-supported AI organization that would combine the resources of various nations’ AI initiatives – such as the UK, the Kingdom of Spain, the Canadian government, Germany, the nation of Japan, Singapore, South Korea, the French Republic, the Swiss Confederation and Sweden – to establish a viable alternative to the American and Asian giants.

The lead author of a study outlining the initiative notes that the concept has drawn the consideration of AI ministers of at least a few nations up to now, along with multiple state AI companies. While it is presently centered on “middle powers”, developing countries – the nation of Mongolia and Rwanda among them – have also shown curiosity.

He comments, In today’s climate, I think it’s just a fact there’s less trust in the promises of the existing American government. Experts are questioning for example, is it safe to rely on these technologies? What if they decide to

Samuel Hobbs
Samuel Hobbs

A seasoned leadership coach with over 15 years of experience in corporate training and personal development.