As governments around the world develop their national AI strategies, policymakers are increasingly weighing the tradeoffs between domestic AI sovereignty and continued integration with global supply chains.
Oxford Economics’ report titled The Economics of Sovereign AI: Balancing Autonomy, Innovation, and Growth in the Asia-Pacific, examines AI’s potential to enhance productivity, competitiveness, and economic growth across Asia-Pacific and Japan. The report looks at AI sovereignty, government’s role in diffusion, and the costs and economic impacts of AI.
The report examines the implications of policy designs that seek to develop the full AI stack domestically versus maintaining access to global supply chains. The report looks at both the economic and opportunity costs associated with building domestic AI capacity and through widespread adoption. It also explores the various risks and challenges associated with different sovereignty approaches, while providing policy recommendations to strengthen sovereignty without losing out on the economic, productivity and innovative gains. Find the full report below.
Quotes
"Capturing value from AI's economic opportunities is one of the most important challenges facing national policymakers, and is the driving force behind the AI Adoption Initiative. The report by Oxford Economics is a valuable contribution to understanding the trade-offs governments face as they try to accelerate adoption of economically useful AI applications while addressing sovereignty concerns.”
“AI sovereignty is becoming a defining policy issue across Asia-Pacific. Our analysis shows that the design of these policies matters: approaches that preserve openness while applying strong assurance can support national sovereignty objectives without sacrificing the economic productivity gains AI is expected to deliver.”
Policy Paper