Leadership in the development and deployment of AI – for both economic and military purposes – may define the geopolitical pecking order in the 21st century.
Key takeaways
- AI is pivotal to the unfolding, and end state, of US-China competition.
- Geopolitical bottlenecks in the AI supply chain currently favour the US but its leadership in AI is not predetermined.
- Middle/great powers (i.e., Canada, France, Israel, the UK) can leverage AI to punch above their weight.
- Less developed countries will fall behind in the current race for AI.
- New international AI governance frameworks are on the horizon.
Lazard Geopolitical Advisory released a new report which examines geopolitical dynamics impacting countries and their approach to AI, policy responses and how they interact with increasingly politicised bottlenecks in the AI value chain (i.e., computing power, data, talent, and infrastructure), and business implications focused on the technology, healthcare, financial services, and energy sectors.
Competition over AI is most stark between the United States and China, which view leadership in AI as “the main game” in determining the outcome of US-China rivalry. This week the US Commerce Department this week announced an additional set of steps intended to restrict China’s ability to develop advanced AI and signalled that further action is on the horizon – the latest indication that AI, and emerging technologies in general, are on the frontlines of geopolitical competition.