Anguilla, a small British overseas territory in the Caribbean, is experiencing an economic transformation thanks to artificial intelligence. The island now generates around a third of its government revenue from AI-related activities, according to a report by Forbes.
Domain name goldmine
The source of this windfall is the “.ai” internet domain, which is assigned to Anguilla. Much like “.jp” for Japan or “.fr” for France, “.ai” has become highly sought after by tech companies worldwide. Since the launch of ChatGPT in November 2022, registrations for the .ai domain name have surged dramatically.
The International Monetary Fund (IMF) revealed that registrations soared from 144,000 in 2022 to 354,000 in 2023. This surge has generated significant revenue for the island, with .ai domain registrations bringing in EC$87 million (approximately $32 million) last year. This accounted for just over 20% of the Anguillan government’s total revenue, marking a dramatic increase from previous years when the revenue from these registrations was around 5%.
Economic diversification
Traditionally, Anguilla has been heavily dependent on tourism, which accounts for 37% of its GDP. The boom in .ai domain registrations is now playing a crucial role in diversifying the island’s economy. The IMF predicts that revenue from .ai domain registrations will stabilize at around 15% of total government revenue as the initial rush slows.
With the unexpected success of its .ai domain, Anguilla is well on its way to becoming a significant player in the global AI economy, leveraging its unique digital asset to fuel sustainable growth and economic diversification.
