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The Caribbean Island Profiting from the AI Boom
In the midst of the burgeoning artificial intelligence (AI) industry, a route to gain has presented itself to an unlikely beneficiary. The small Caribbean nation of Anguilla has capitalized on an unexpected turn of events when internet domain codes were initially distributed.
Anguilla’s .ai Country Code and AI Revolution
In 1995, Anguilla, situated east of Puerto Rico, was allocated the .ai country code for internet domains by the International Telecommunication Union. Buyers have the privilege to register the .ai for their websites for up to two years, with the potential to renew subsequently.
The number of .ai domain registrations witnessed a significant surge from approximately 100,000 in 2021 following the introduction of OpenAI’s ChatGPT in November 2022, which instigated the AI revolution. In 2023, there was more than a twofold increase in .ai domain registrations from 144,000 in 2022 to a staggering 354,000.
AI’s Contribution to Anguilla’s Revenue
“The emergence of AI has significantly increased the allure of .ai, leading to significant revenue generation from .ai domains. The revenue has been growing steadily,” commented Haydn Hughes, Anguilla’s Minister of Tourism and Infrastructure, in a conversation with FOX Business.
Hughes disclosed that the allocation of the .ai domain code to Anguilla in 1995 was purely coincidental. He recalled, “We did not have computers or modern technology, or email addresses, or internet access. Artificial intelligence was well beyond our understanding at the time.”
“But as time went on, we recognized the potential in this very young administration. We have ministers who have a firm grasp of technology and have successfully commercialized it. This has been a boon for the island and has enabled us to invest extensively in both physical and social infrastructure,” cryptically explained Hughes.
Anguilla’s Revenue from .ai Domain Registrations
The sudden surge in .ai domain registrations has significantly increased the share of the government’s revenue from these registrations. In 2019, it constituted 4% of the total income, soaring to more than 20% in 2023, generating nearly $32 million.
The International Monetary Fund (IMF) report predicts that the revenue from .ai domain registrations will stabilize at around 15% once the rush of registrations eventually calms. A similar instance happened with the South Pacific nation of Tuvalu, with its .tv domain code.
Impact of .ai Domains on Anguilla’s Tourism Industry
According to Hughes, the attention the .ai domain has brought to Anguilla has resulted in heightened visibility in the tourism sector, which contributes about 37% of its gross domestic product.
“One of the incredible benefits of the .ai domain is that it has put Anguilla on the map for those who were previously unaware of its existence. When visitors come to Anguilla intrigued by the .ai phenomenon, they are often pleasantly surprised by our hospitality offerings, including our restaurants, hotels, and villas,” Hughes further elaborated.
Use of .ai Revenue for Social Infrastructure
Hughes emphasized the significance of the revenue influx from .ai, assisting Anguilla in maintaining its lenient tax regime. It involves no personal income tax, capital gains tax, or corporate tax.
Anguilla has utilized the income generated from .ai to fund several initiatives, including the Senior Shield program offering comprehensive healthcare to residents over 70. The government is also digitizing the public school system, ensuring the provision of laptops and digital scholarships to students. Part of this revenue has also gone towards the construction of a new airport terminal.
“It’s a small island of just 15,000 inhabitants, so this contribution goes a very long way,” Hughes concluded.
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