Countries Are Spending Billions on Domestic State-Controlled AI Systems – Could It Be a Major Misuse of Resources?

Internationally, states are channeling hundreds of billions into what is known as “sovereign AI” – creating national AI technologies. From the city-state of Singapore to the nation of Malaysia and the Swiss Confederation, countries are vying to create AI that grasps regional dialects and cultural nuances.

The International AI Competition

This movement is a component of a broader global competition led by large firms from the United States and the People's Republic of China. While firms like a leading AI firm and Meta invest enormous funds, developing countries are likewise placing their own gambles in the AI field.

However amid such vast sums involved, is it possible for less wealthy countries secure significant advantages? According to an expert from an influential research institute, Except if you’re a rich government or a big company, it’s quite a challenge to build an LLM from scratch.”

Security Concerns

Many states are hesitant to use foreign AI systems. Throughout the Indian subcontinent, for example, American-made AI solutions have at times proven inadequate. A particular instance involved an AI assistant employed to teach learners in a distant area – it communicated in English with a thick American accent that was nearly-incomprehensible for local users.

Then there’s the state security dimension. For India’s military authorities, employing certain external models is viewed unacceptable. According to a developer noted, “It could have some unvetted learning material that might say that, such as, a certain region is not part of India … Utilizing that certain AI in a military context is a big no-no.”

He further stated, “I have spoken to experts who are in the military. They aim to use AI, but, disregarding certain models, they prefer not to rely on Western platforms because information could travel outside the country, and that is completely unacceptable with them.”

Domestic Efforts

In response, some states are backing local projects. One such effort is underway in the Indian market, where a company is working to develop a domestic LLM with public support. This initiative has dedicated roughly 1.25 billion dollars to AI development.

The developer imagines a model that is significantly smaller than premier tools from Western and Eastern tech companies. He states that the country will have to make up for the resource shortfall with expertise. Located in India, we lack the option of allocating massive funds into it,” he says. “How do we compete versus for example the $100 or $300 or $500bn that the US is pumping in? I think that is the point at which the core expertise and the intellectual challenge is essential.”

Regional Focus

Across Singapore, a public project is supporting language models developed in the region's local dialects. These particular dialects – such as the Malay language, Thai, Lao, Bahasa Indonesia, Khmer and others – are frequently poorly represented in Western-developed LLMs.

I hope the people who are developing these independent AI systems were aware of how rapidly and how quickly the leading edge is moving.

An executive involved in the project says that these systems are designed to enhance more extensive models, rather than substituting them. Tools such as a popular AI tool and another major AI system, he comments, frequently have difficulty with local dialects and cultural aspects – interacting in unnatural Khmer, as an example, or suggesting non-vegetarian dishes to Malay individuals.

Developing regional-language LLMs allows state agencies to include local context – and at least be “smart consumers” of a sophisticated system built elsewhere.

He continues, I am prudent with the term national. I think what we’re aiming to convey is we aim to be more adequately included and we want to grasp the abilities” of AI platforms.

Cross-Border Collaboration

Regarding nations attempting to find their place in an growing worldwide landscape, there’s another possibility: join forces. Researchers affiliated with a well-known institution put forward a state-owned AI venture distributed among a group of developing countries.

They call the proposal “Airbus for AI”, drawing inspiration from Europe’s effective strategy to build a competitor to Boeing in the mid-20th century. This idea would entail the establishment of a state-backed AI entity that would combine the resources of various nations’ AI initiatives – for example the United Kingdom, Spain, Canada, Germany, Japan, Singapore, the Republic of Korea, the French Republic, Switzerland and the Kingdom of Sweden – to develop a viable alternative to the American and Asian leaders.

The main proponent of a paper setting out the concept notes that the idea has attracted the attention of AI officials of at least a few states so far, in addition to a number of sovereign AI organizations. Although it is now targeting “mid-sized nations”, developing countries – the nation of Mongolia and the Republic of Rwanda included – have likewise shown curiosity.

He elaborates, Currently, I think it’s just a fact there’s reduced confidence in the assurances of the existing White House. Experts are questioning for example, is it safe to rely on such systems? Suppose they decide to

Lawrence Schmitt
Lawrence Schmitt

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