Policy makers in many countries are determined to develop artificial intelligence (AI) within their borders because they view AI as essential to both national security and economic growth. Some countries have proposed adopting AI sovereignty, where the nation develops AI for its people, by its people and within its borders. In this paper, the author makes a distinction between policies designed to advance domestic AI and policies that, with or without direct intent, hamper the production or trade of foreign-produced AI (known as “AI nationalism”). AI nationalist policies in one country can make it harder for firms in another country to develop AI. If officials can limit access to key components of the AI supply chain, such as data, capital, expertise or computing power, they may be able to limit the AI prowess of competitors in country Y and/or Z. Moreover, if policy makers can shape regulations in ways that benefit local AI competitors, they may also impede the competitiveness of other nations’ AI developers. AI nationalism may seem appropriate given the import of AI, but this paper aims to illuminate how AI nationalistic policies may backfire and could divide the world into AI haves and have nots.
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