News Americas, New York, NY, Fri. Oct. 18, 2024: The Caribbean British territory of Anguilla has taken another significant step in its digital evolution, signing a new agreement with the U.S.-based company Identity Digital on Oct. 15, 2024, to manage its highly coveted “.ai” Internet domain. This deal comes amid a global surge in demand for AI-related domains, as artificial intelligence continues to shape industries worldwide.
Anguilla, which has been responsible for the “.ai” domain since the 1990s, is seeing unprecedented revenue growth as companies flock to secure AI-themed web addresses. Despite the change in management, domain registration fees will remain stable, but Anguilla continues to benefit from payments when new “.ai” domains are registered or when expired ones are resold. Some of these domains have fetched tens of thousands of dollars on the market.
The artificial intelligence boom, sparked in part by the rise of popular technologies like ChatGPT, has brought a windfall to Anguilla. The island’s earnings from domain registrations soared to $32 million last year, quadrupling its previous revenue and now accounting for about 20% of the island’s government income. This marks a significant shift from the pre-AI era, when domain revenues made up only 5% of government funds.
Premier Ellis Webster expressed optimism about the financial boost but remained cautious about relying solely on domain-related income. “We can’t predict how long this will last,” Webster told the Associated Press, emphasizing the importance of diversifying the island’s economy to avoid potential future financial shortfalls. He noted that funds from domain sales have already been allocated to vital infrastructure projects, including the expansion of the airport, free healthcare for seniors, and the construction of a vocational training center at the local high school.
Identity Digital, which also manages Australia’s “.au” domain, will take over management of Anguilla’s domain services by early next year. This partnership is expected to enhance the security, resilience, and performance of the “.ai” domain, ensuring continued growth and minimizing risks from cybercriminals.
The global AI rush has dramatically increased the number of “.ai” domains, with more than 533,000 currently registered – a tenfold rise since 2018. This has positioned Anguilla at the center of the AI domain boom, even though the island itself has no significant AI industry. Still, Premier Webster is hopeful that Anguilla may one day develop into a hub for AI innovation.
Anguilla’s unique role in the AI-driven digital economy represents a significant opportunity for the island to diversify its economy, which traditionally relies on tourism. The income from domain sales not only supports infrastructure but also provides a financial buffer for hurricane recovery efforts and other emergency projects. As the International Monetary Fund noted earlier this year, these revenues help to make Anguilla more resilient to external shocks.
As the AI domain market continues to grow, Anguilla’s partnership with Identity Digital is expected to protect the integrity of its digital presence, reducing the risks of fraud and ensuring that the domain remains a valuable asset for both the island and the global AI community.
