Artificial intelligence (AI) is already transforming industries like health, education, and entertainment.
Meanwhile, the small Caribbean island of Anguilla, a British overseas territory is now generating roughly one-third of its government revenue from AI despite not developing or using the technology directly. But how?
A picture taken on October 23, 2018 shows a beach in Anguilla, a British overseas territory.CEDRICK ISHAM CALVADOS/AFP via Getty Images
AI Domain Registrations Skyrocket
Anguilla's massive AI revenue comes from its internet domain suffix, ".ai". ".ai" is the abbreviation for Anguilla, just as ".us" stands for United States and ".jp" for Japan. This designation has become highly lucrative as AI technology has grown in popularity in the past couple of years.
Since the launch of OpenAI's ChatGPT in November 2022, there has been a significant increase in the registration of ".ai" domains. Tech companies globally have adopted this domain suffix due to its association with artificial intelligence, resulting in a massive influx of domain registrations.
The numbers speak volumes: Data from Domain Name Stat tells us that AI domain registrations jumped from around 10,000 in 2022 to more than 360,000 in 2023, marking a massive 3500% increase in just one year.
Small Island Is Earning Big from ".ai" Domains
This surge in domain registrations has translated into substantial revenue for Anguilla. In 2023, ".ai" domain registrations generated an impressive EC$87 million, equivalent to approximately $32 million. This revenue accounted for just over 20% of the island's total government revenue for the year.
Vince Cate, who oversees domain registrations for the Anguillan government, shares the significant influence of ChatGPT on domain sales. He noted that in the five months following the launch of the popular AI chatbot, sales increased nearly fourfold.
Currently, Anguilla earns around $3 million per month from these registrations. Cate predicts this figure could double as domains come up for renewal, potentially reaching $6 million monthly (via Forbes).
According to Forbes, this revenue is significant for an island with about 16,000 residents. It comes to roughly $2,250 per person yearly, which greatly boosts the government's income.
The island, which covers only 35 square miles, has traditionally relied on tourism, offshore banking, and fishing.
The ".ai" domain windfall is crucial for Anguilla, especially as it seeks to diversify its economy. The International Monetary Fund (IMF) emphasized that Anguilla's reliance on tourism, which accounts for 37% of its GDP, makes it vulnerable to global economic shifts.
The growing revenue from ".ai" domain registrations provides a new, stable income stream that helps mitigate these risks .
The Broader AI Market
According to Statista, the global AI market is projected to expand dramatically, from $241.8 billion in 2023 to nearly $740 billion by 2030. This rapid growth underscores the increasing importance of AI technology across industries, driving substantial economic gains.
