Overview
Bank of America’s latest AI competitiveness report underscores that while the United States and China remain far ahead in the global artificial‑intelligence race, a handful of other economies are positioning themselves to capture AI‑driven growth. The United States retains its lead through private investment, advanced chip design, and robust computing‑infrastructure capabilities, whereas China leverages massive manufacturing scale, lower energy costs, and dominance in processed critical minerals.
South Korea
Among nations outside the US‑China duopoly, South Korea is identified as the strongest overall AI contender for both the short and long term. The brokerage highlights Korea’s exposure to semiconductor manufacturing, rapidly expanding AI adoption, supportive government policies, and its ability to translate AI deployment into sustained productivity gains.
United Arab Emirates
The United Arab Emirates is ranked as another leading AI contender. Its position is bolstered by heavy government investment, abundant and reliable energy resources, and one of the world’s highest AI adoption rates. The report notes, however, that geopolitical risks constitute a key uncertainty for the UAE’s AI outlook.
Second‑Tier Leaders
Canada, Germany, Israel, the Netherlands, Singapore, Switzerland and the United Kingdom are cited as forming a strong second tier of AI leaders, each showing notable progress in AI adoption and ecosystem development.
India
India is highlighted as the clearest long‑term AI challenger among emerging markets. Although it lacks the semiconductor manufacturing base enjoyed by several Asian peers, India already ranks among the world’s largest AI adoption markets, with diffusion levels comparable to several advanced economies. The report suggests that stronger policy support and job‑creation initiatives could markedly improve India’s long‑term AI outlook, while labour‑market disruption remains a key challenge.
Near‑Term Beneficiaries
Taiwan, Australia and Japan are identified as near‑term beneficiaries of the global AI infrastructure build‑out because of their importance to semiconductor manufacturing, critical‑mineral supply and data‑center supply chains. Nevertheless, the report cautions that these countries still face challenges in converting those structural advantages into broader productivity gains.
Energy as a Competitive Edge
The analysis also points out that abundant and reliable energy is becoming an increasingly important competitive advantage in AI. Countries such as Canada, France and the UAE gain an edge as computing workloads and data‑center capacity continue to expand.