The rivalry in artificial intelligence on a global scale is primarily focused on the United States and China, as highlighted by the Boston Consulting Group. However, the landscape is evolving, with “middle powers” playing an increasingly significant role in shaping the geopolitics of AI. According to analysts, the European Union, South Korea, Japan, Saudi Arabia, and the UAE each possess unique strengths in the AI domain. In a recently published analysis, it was noted that the EU boasts a wealth of talent and a thriving startup ecosystem, while the Asian nations are pivotal for hardware development and possess highly concentrated tech ecosystems. On the other hand, the Gulf powers benefit from abundant capital resources and access to cheap energy.
The analysts caution against overreliance on companies solely from the US or China, emphasizing the potential challenges this could pose. They advocate for a more multipolar distribution of General Artificial Intelligence (GenAI) to increase complexity but also to create critical optionality in the global AI landscape.
Despite the US maintaining its top ranking in Tortoise Media’s Global AI Index, with China following closely in second place, the next eight highest-scoring nations, such as Singapore, the UK, and France, are not far behind Beijing in terms of AI capabilities. However, there remains a substantial gap between the US and Europe, with the combined market capitalization of Europe’s seven largest tech firms being significantly lower than that of the US’ renowned “Magnificent Seven”. The ability of American companies to innovate, scale, and dominate global markets sets them apart, according to EQT. The suggestion is for Europe to increase investment in research and development, embrace a more innovative and risk-taking approach, and ensure its readiness to actively participate in the AI arena.
The Gulf states are leveraging their vast sovereign wealth funds to accelerate technological advancements. However, uncertainties persist regarding whether countries like Saudi Arabia and the UAE can expand their talent pools sufficiently to foster a self-sustaining model development ecosystem. Boston Consulting Group highlighted that a recent study by McKinsey & Company revealed challenges faced by senior executives and board members of Gulf Cooperation Council companies in filling roles and attracting new talent due to the region’s comparatively lower level of AI maturity.
There is a notable interest in AI across various sectors, but a common issue identified is the inadequate training provided to workers on the safe and effective use of AI tools. This lack of training not only increases the risk of data loss and misinformation but also hinders the full potential of AI adoption in organizations, as pointed out by a CEO from a global management consultancy in Arab News.
In conclusion, the evolving dynamics of the global AI landscape underscore the importance of a multipolar approach to AI development and deployment. While the US and China continue to lead the pack, the emergence of middle powers with distinct strengths, such as the EU, South Korea, Japan, Saudi Arabia, and the UAE, indicates a shift towards a more diverse and competitive AI ecosystem. It is crucial for all nations to invest in talent development, innovation
