Countries Are Spending Billions on Domestic Independent AI Systems – Could It Be a Significant Drain of Funds?

Around the globe, nations are investing hundreds of billions into what's termed “sovereign AI” – developing national artificial intelligence technologies. From Singapore to Malaysia and the Swiss Confederation, states are competing to build AI that understands regional dialects and cultural nuances.

The Global AI Battle

This movement is part of a wider global contest led by tech giants from the United States and China. While organizations like a leading AI firm and a social media giant allocate substantial resources, mid-sized nations are also making independent investments in the artificial intelligence domain.

Yet with such huge sums in play, is it possible for smaller nations secure meaningful gains? According to an expert from a prominent policy organization, If not you’re a affluent government or a large firm, it’s a significant challenge to develop an LLM from scratch.”

Security Issues

Numerous countries are unwilling to rely on external AI models. Across India, for example, US-built AI systems have occasionally been insufficient. One instance featured an AI agent used to instruct pupils in a distant village – it communicated in English with a pronounced Western inflection that was difficult to follow for regional students.

Additionally there’s the defence dimension. For the Indian military authorities, using specific international AI tools is considered inadmissible. Per an developer commented, “It could have some arbitrary data source that could claim that, for example, Ladakh is not part of India … Employing that certain system in a security environment is a big no-no.”

He further stated, “I have spoken to individuals who are in defence. They wish to use AI, but, setting aside certain models, they prefer not to rely on American technologies because data might go outside the country, and that is totally inappropriate with them.”

Domestic Efforts

In response, a number of states are supporting domestic projects. A particular such a initiative is in progress in India, in which a company is striving to develop a domestic LLM with state funding. This effort has dedicated approximately $1.25bn to machine learning progress.

The expert envisions a AI that is more compact than premier models from American and Asian corporations. He explains that the country will have to make up for the funding gap with skill. Located in India, we do not possess the advantage of investing huge sums into it,” he says. “How do we contend with such as 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.”

Native Priority

Throughout the city-state, a public project is funding AI systems trained in local regional languages. These particular dialects – including the Malay language, Thai, Lao, Bahasa Indonesia, the Khmer language and others – are frequently inadequately covered in US and Chinese LLMs.

It is my desire that the experts who are developing these national AI tools were informed of the extent to which and the speed at which the frontier is progressing.

An executive engaged in the project says that these tools are designed to complement bigger systems, instead of replacing them. Platforms such as a popular AI tool and Gemini, he states, frequently find it challenging to handle local dialects and culture – speaking in unnatural Khmer, for instance, or recommending non-vegetarian meals to Malaysian consumers.

Building regional-language LLMs permits state agencies to include cultural nuance – and at least be “informed users” of a sophisticated technology built in other countries.

He continues, I am prudent with the term sovereign. I think what we’re trying to say is we aim to be better represented and we aim to grasp the abilities” of AI technologies.

International Cooperation

Regarding countries attempting to carve out a role in an escalating international arena, there’s an alternative: join forces. Experts connected to a prominent university have suggested a public AI company distributed among a group of emerging states.

They call the proposal “an AI equivalent of Airbus”, drawing inspiration from Europe’s effective initiative to create a alternative to a major aerospace firm in the 1960s. Their proposal would entail the establishment of a public AI company that would merge the resources of different states’ AI projects – including the United Kingdom, the Kingdom of Spain, the Canadian government, Germany, Japan, Singapore, South Korea, the French Republic, Switzerland and the Kingdom of Sweden – to create a viable alternative to the Western and Eastern leaders.

The main proponent of a report describing the concept states that the proposal has drawn the interest of AI ministers of at least several nations so far, as well as a number of state AI firms. While it is now focused on “middle powers”, developing countries – Mongolia and Rwanda included – have additionally shown curiosity.

He comments, In today’s climate, I think it’s an accepted truth there’s less trust in the promises of the present US administration. People are asking for example, is it safe to rely on such systems? In case they decide to

Amanda Bauer
Amanda Bauer

A structural engineer with over 15 years of experience in designing sustainable building solutions and sharing industry insights.