Nations Are Allocating Billions on National ‘Sovereign’ AI Systems – Might This Be a Significant Drain of Resources?

Internationally, states are pouring massive amounts into the concept of “sovereign AI” – creating domestic AI models. Starting with the city-state of Singapore to the nation of Malaysia and the Swiss Confederation, countries are competing to create AI that comprehends native tongues and cultural specifics.

The Global AI Battle

This movement is part of a broader international race led by major corporations from the United States and China. Whereas firms like a leading AI firm and a social media giant invest enormous resources, middle powers are also placing sovereign investments in the AI field.

However amid such huge investments in play, is it possible for developing states achieve notable benefits? According to an expert from a well-known policy organization, “Unless you’re a wealthy state or a big company, it’s a significant hardship to develop an LLM from nothing.”

National Security Considerations

Numerous states are reluctant to use overseas AI models. Throughout the Indian subcontinent, as an example, US-built AI tools have at times been insufficient. A particular instance featured an AI agent deployed to teach pupils in a distant village – it communicated in the English language with a thick American accent that was difficult to follow for native students.

Furthermore there’s the national security factor. For India’s defence ministry, using specific external AI tools is seen as unacceptable. As one entrepreneur explained, “It could have some random training dataset that might say that, for example, Ladakh is outside of India … Using that specific model in a defence setup is a serious concern.”

He added, “I have spoken to people who are in defence. They aim to use AI, but, setting aside certain models, they are reluctant to rely on US technologies because information might go abroad, and that is completely unacceptable with them.”

Domestic Efforts

As a result, a number of nations are backing national ventures. An example such a initiative is underway in the Indian market, where a company is working to develop a national LLM with government backing. This project has allocated roughly a substantial sum to artificial intelligence advancement.

The founder foresees a AI that is significantly smaller than top-tier models from US and Chinese firms. He explains that the country will have to compensate for the financial disparity with talent. “Being in India, we don’t have the advantage of pouring huge sums into it,” he says. “How do we contend versus for example the enormous investments that the America is pumping in? I think that is where the fundamental knowledge and the intellectual challenge is essential.”

Native Emphasis

In Singapore, a state-backed program is supporting machine learning tools trained in the region's regional languages. Such tongues – including the Malay language, Thai, Lao, Indonesian, the Khmer language and additional ones – are frequently inadequately covered in Western-developed LLMs.

It is my desire that the experts who are developing these sovereign AI systems were conscious of just how far and how quickly the frontier is moving.

An executive involved in the program explains that these models are intended to complement larger systems, instead of replacing them. Systems such as a popular AI tool and Gemini, he comments, frequently find it challenging to handle local dialects and culture – interacting in stilted the Khmer language, as an example, or suggesting meat-containing dishes to Malaysian individuals.

Creating native-tongue LLMs permits state agencies to code in cultural nuance – and at least be “informed users” of a advanced system created elsewhere.

He adds, I am prudent with the term sovereign. I think what we’re aiming to convey is we aim to be more accurately reflected and we want to understand the features” of AI systems.

Cross-Border Cooperation

Regarding nations seeking to establish a position in an growing global market, there’s another possibility: join forces. Researchers affiliated with a respected policy school put forward a government-backed AI initiative allocated across a group of emerging countries.

They term the project “a collaborative AI effort”, in reference to the European successful strategy to build a rival to a major aerospace firm in the mid-20th century. The plan would involve the creation of a government-supported AI organization that would pool the capabilities of various states’ AI initiatives – such as the UK, the Kingdom of Spain, Canada, the Federal Republic of Germany, Japan, the Republic of Singapore, the Republic of Korea, the French Republic, Switzerland and Sweden – to establish a strong competitor to the Western and Eastern major players.

The main proponent of a paper outlining the initiative states that the idea has attracted the attention of AI officials of at least several states up to now, as well as a number of sovereign AI organizations. While it is now targeting “developing countries”, emerging economies – Mongolia and Rwanda included – have likewise shown curiosity.

He elaborates, “Nowadays, I think it’s just a fact there’s diminished faith in the commitments of this current US administration. Experts are questioning like, can I still depend on such systems? Suppose they choose to

David Smith
David Smith

A tech enthusiast and writer with a passion for exploring cutting-edge innovations and sharing practical advice for everyday users.