Oxford Economics was commissioned by the AI Adoption Initiative to develop a research report that supports policymakers as they navigate a growing dilemma: how to strengthen sovereignty without undermining economic efficiency, innovation, or sustainability.<\/p>\n
Artificial intelligence (AI) is increasingly recognised as a general-purpose technology with the potential to lift productivity, strengthen competitiveness, and support long-term economic growth across Asia-Pacific and Japan (APJ). At the same time, governments are placing greater emphasis on sovereignty\u2014seeking to ensure that data, infrastructure, and AI systems remain subject to domestic control, oversight, and values. This shift reflects legitimate economic security and societal concerns, but it also raises important questions about cost, scalability, and the pace of AI adoption.<\/p>\n
\u201cAI sovereignty is becoming a defining policy issue across Asia-Pacific,\u201d said Henry Worthington, Managing Director at Oxford Economics. \u201cOur 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.\u201d<\/p>\n
The research utilises bespoke economic modelling to quantify both the direct costs of building domestic AI capacity and the opportunity costs arising from slower diffusion and reduced productivity gains. The analysis is supplemented with in-depth interviews with technical, legal, and sector experts.<\/p>\n
\u201cCapturing value from AI\u2019s 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.\u201d Kevin Allison, Affiliated Research Fellow, AI Adoption Initiative and President, Minerva Technology Futures<\/p>\n