Anguilla Profits from AI

A small Caribbean nation is capitalizing on the artificial intelligence (AI) boom thanks to a coincidence that dates back to the 1990s. Anguilla, a British Overseas Territory, received the .ai country code for internet domains in 1995, setting the stage for a modern economic windfall. 

The Origin of .ai Domains 

In 1995, the International Telecommunication Union awarded Anguilla the .ai country code for internet domains. At that time, the island needed more technological infrastructure. "We didn't have computers, modern technology, or even email addresses," says Haydn Hughes, Anguilla's minister of tourism and infrastructure. This allocation has now turned into a significant revenue source for the island. 

The AI Boom and Domain Surge 

The launch of OpenAI's ChatGPT in November 2022 sparked a global AI boom, leading to a surge in demand for .ai domains. The number of registered .ai domains skyrocketed from about 100,000 in 2021 to 354,000 in 2023, significantly boosting Anguilla's revenue. 

Economic Impact on Anguilla 

The .ai domain registrations have transformed Anguilla's economy. In 2023, the government generated about $32 million from these registrations, which accounted for over 20% of its total revenue. "With the advent of artificial intelligence, .ai has become very attractive," Hughes explains. This new revenue stream has enabled significant investments in the island's infrastructure. 

Investments in Infrastructure and Services 

Anguilla has used the revenue from .ai domain registrations to finance various projects, including: 

Boosting Tourism 

The .ai domain has also helped raise Anguilla's profile in the tourism industry, which accounts for about 37% of its GDP. "Those who had never heard of Anguilla now know about us," Hughes says. This increased visibility has attracted more visitors, enhancing the island's hospitality sector. 

Comparing to Tuvalu's .tv Domain 

Similar to Anguilla, the South Pacific nation of Tuvalu benefits from its .tv domain. However, Anguilla manages its domain registrations locally, ensuring most of the revenue stays within the country. This approach contrasts Tuvalu's commercial partnerships, where much money goes to external partners. 

Future Prospects and Stability 

The government expects the revenue from .ai domains to stabilize at about 15% of total revenue as the initial rush eases. This stable income stream will help mitigate economic risks associated with Anguilla's reliance on tourism.