India needs cutting-edge AI. It should use data as bargaining chip for unrestricted access to US models

The US government’s decision to stop non-Americans from using some of its most advanced AI systems is not surprising, but it creates two big problems. First, it makes it harder for countries to work together. Second, it shows countries like India why depending too much on another country’s technology can be risky.

Right now, the US is far ahead of everyone else in AI. China is in second place, but experts say its best AI systems are still a few months behind America’s. That may not sound like much, but in AI, where things are changing very quickly, a few months is a huge gap.

So far, the restriction only affects two AI models: Mythos 5 and Fable 5. Fable 5 was released only last week. It is based on Mythos 5 but includes extra safety features. However, the US government seems worried that people could find ways around those safety rules. If that happened, the AI could be used for harmful purposes, such as finding weaknesses in government computer systems and launching cyberattacks. The US is especially worried about attacks on its military and other important systems. That is why it acted so quickly.

The bigger issue is what happens next. The US and China may decide to keep their most powerful AI systems for themselves and share only older versions with the rest of the world. That would be a problem because AI is not just a computer program. It is becoming an important tool in manufacturing, healthcare, scientific research, and many other fields. Countries without access to the best AI could find it harder to compete.

How can other countries deal with this?

One option is to work together. Since building advanced AI is expensive, countries could share resources such as computer chips, data centres, electricity, and research. However, getting many countries to cooperate closely is easier said than done.

A second option is to build their own AI industries. This means creating everything from computer chips to AI models and apps. Europe is trying to do this. India has talked about it too, but the cost is a major challenge. While some of America’s biggest technology companies plan to spend hundreds of billions of dollars on AI this year, India receives only a small share of global AI investment.

The third option may be the most practical. India could continue using American AI but make sure it has some bargaining power. One thing that AI companies want is data from India’s huge number of users. India could make access to that data conditional on certain rules, such as requiring the data to be stored inside the country. That way, India would have more influence and be less vulnerable if similar restrictions are imposed in the future.

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