Anguilla, a small British overseas territory in the Caribbean, has experienced a significant economic transformation due to the rise of AI. Apart from tourism, the island earns considerable revenues from the registration of its country-code internet domain, “.ai,” according to Forbes.
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The .ai domain belonging to Anguilla, like the .jp domain of Japan, and .fr domain of France, has been registering phenomenal growth rate, due to the rise of artificial intelligence (AI).
“They (AI) have also generated an unusual boom in Anguilla, a British overseas territory and member of the Eastern Caribbean Currency Union, whose .ai country-code internet domain has become a favourite among technology companies across the world. “
IMF
Anguilla Capitalizing on .ai Domain Boom
From a financial perspective, the .ai domain boom has positively impacted Anguilla’s economy. Domain registrations have generated EC$87 million (approximately $32 million) and account for over 20% of the government’s revenue as of 2023.
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This represents a significant increase over the previous year, where it accounted for only about 5% of the government’s total income. Historically, Anguilla’s economy depends on tourism, which constitutes 37% of its GDP. However, the surge in .ai domain sales could play an important role in diversifying the Island’s economy.
IMF Highlights AI Domain’s Fiscal Impact
According to the IMF, this new revenue stream is crucial for achieving financial sustainability and fostering economic growth.
In response to this financial windfall, Anguilla’s authorities have committed to a prudent fiscal strategy; paying down debt and prioritizing capital expenditure. Analysts believe that the injection of funds from .ai domain registrations can benefit key infrastructural projects on the Island.
The government also plans to invest these revenues in long-term sustainable projects in areas like renewable energy.
Anguilla isn’t the first island to benefit from its two-letter domain; the island of Tuvalu had benefitted from its .tv domain. While Tuvalu has long worked with commercial partners such as Verisign and GoDaddy to license the .tv domain, Anguilla is handling registrations by itself.
Anguilla to Become Regional Tech Hub
“The cash inflow from the .ai domain registration fees are not just a windfall but a strategic advantage for Anguilla,” authorities say. Through its ccTLD, Anguilla has established itself as a major player in the tech space.
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The “.ai” domain boom has led to debates regarding the possibilities of Anguilla becoming the technological hub of the region, even much more, a hub for AI-based companies and startups – a recipe for further economic growth.
Cryptopolitan reporting by Brenda Kanana
