One beneficiary of the AI boom is the small Caribbean island of Anguilla, a British overseas territory. Thanks to its favourable country-code top-level domain (ccTLD), ".ai," Anguilla has seen a remarkable surge in revenue from domain registrations, providing a much-needed boost to its economy.
Anguilla's .ai domain has become increasingly popular among technology companies worldwide, particularly since the launch of OpenAI's ChatGPT in November 2022. As a result, registrations of .ai domain names have skyrocketed, growing from 144,000 in 2022 to an impressive 354,000 in 2023. This surge has generated a significant amount of revenue for the island, with domain registrations accounting for just over 20 percent of the government's total revenue in 2023, up from around 5 percent in previous years.
According to Flavien Moreau, an economist in the IMF's Western Hemisphere department, "Anguilla's story is not unique among Small Island Developing States, as others like Tuvalu (.tv) have benefited from favourable country code top-level domains assigned in the 1990s by the International Telecommunication Union."
The revenue generated from .ai domain registrations has played a crucial role in diversifying Anguilla's economy, which is heavily dependent on tourism. With tourism activities accounting for 37 percent of the island's GDP, the domain registration boom has helped make the economy more resilient to external shocks. The government expects revenue from .ai domain registrations to stabilise at around 15 percent of total government revenue, providing a steady stream of income for the island.
One of the factors contributing to Anguilla's success is its pricing model for domain registrations. The island charges US$140 for a two-year domain registration, which not only encourages new registrations but also ensures a consistent revenue stream from renewals. Approximately 90 percent of domains are renewed after two years, and even expired domains can be highly valuable. For example, the domain "litigate.ai" was auctioned for US$13,000 in 2023.
In response to this financial windfall, Anguilla's authorities have committed to a prudent fiscal strategy, focusing on paying down debt and prioritising capital expenditure. The additional funds from .ai domain registrations will be invested in key infrastructure projects, such as the development of the airport, and long-term, sustainable projects in areas like renewable energy. The government also plans to focus on the Blue Economy, including sustainable fishery and biodiversity preservation, as a medium-term goal.
Anguilla's revenue surge from .ai domain registrations serves as a testament to the far-reaching impact of AI technology. By capitalising on its favourable ccTLD, the small Caribbean island has not only diversified its economy but also secured a steady stream of revenue to invest in critical infrastructure and sustainable projects.