The development of artificial intelligence (AI) is transforming global power structures, redefining economic and political arrangements around the world. In all this dynamically changing landscape, it is paramount not to be left behind. The question is, can everyone keep up with these changes?
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It is no secret that, on a global scale, the cards are being dealt by the giants, be they the USA, China or the European Union taken as a whole. Each of the giants has its own vision and its own unique approach to the development of artificial intelligence. This, in turn, means that the technology is not developing in the same way and at the same pace around the world.
Chinese dominance
If one were to look at the issue only in terms of investment in AI, the Chinese lead the field quite decisively. Their investment in AI work and development is expected to reach a dizzying $38 billion by 2027.
However, that is not all. Beijing has at its disposal not only huge funds, but also an unprecedented number of STEM (science, technology, engineering, mathematics) graduates - some 3.6 million a year. Such a mass of educated professionals allows China to dynamically develop new technologies, while other countries such as the USA (820,000 STEM graduates) and India (2.6 million) lag far behind.
The technological rivalry between China and the US has also been growing in recent years. In 2023, the US government imposed restrictions on investment in China's microelectronics, quantum technology and AI sectors, raising formal concerns from the Chinese side. The US, where the private sector is a key driver of the technology revolution, supports research and development through agencies such as DARPA, which translates into significant advances in military and intelligence technologies.
A magnet for talent
What's more, the world's largest AI-related companies, such as Microsoft, Apple, Alphabet (Google), Nvidia, Amazon and Meta, are all based in the US. Microsoft, which was the first to reach a $3 trillion market valuation, is emblematic of the impact of technology giants on national economies. These companies attract the best talent and have a significant impact on global technological innovation.
How does the aforementioned Europe compare against this backdrop? Well, although the Old Continent has a significant research base, it still suffers from problems such as an exodus of talent and relatively low private investment. Nonetheless, European research institutions remain at the top of global rankings, a testament to their potential in the field of AI research. The diversity of approaches across EU countries, such as France and Germany, contributes to a rich ecosystem of startups and innovation.
What are they playing at in Europe?
It is also worth remembering that the European Union was the first in the world to introduce regulations on artificial intelligence, the AI Act, to ensure the ethical and responsible development of the technology. The new regulations prioritise priorities such as privacy, sustainability and technological sovereignty, which could become Europe's competitive advantage in the global technology race.
So it is clear to see that artificial intelligence is a key part of the new industrial revolution that is transforming global power balances. China, the US and Europe, although following different paths, are all striving for dominance in this field.
As AI development accelerates, Europe needs to focus on its unique strengths, such as strong research institutions and an ethical approach to the technology. If it fails to do so - which is harder to do with such fragmented decision-making - it will find it very difficult to keep pace with the Americans and the Chinese, where budgets, regulation and the ethical aspect of things do not matter as much. What matters is to stay one step ahead of the competition at all times in the race to the top.
