The Rise of AI Outside the United States: A Global Perspective
Artificial intelligence (AI) is rapidly transforming industries and societies worldwide. While the United States has historically been a leader in AI research and development, other regions are emerging as significant players in the global AI landscape. This study provides a comprehensive overview of how AI evolves outside the United States, drawing on recent research papers, industry reports, and news articles.
AI Research and Development Beyond US Borders
Europe
Europe has a strong foundation in AI research, with a long history of academic excellence and a growing number of innovative startups. The European Commission has identified AI as a key priority, launching initiatives such as the European AI Strategy and the AI Act to foster innovation and responsible development. The European Commission promotes AI development through funding programs like Horizon Europe and the European Innovation Council. These initiatives support research, innovation, and the development of ethical guidelines for AI1.
Several factors contribute to Europe's growing influence in AI:
Strong Research Ecosystem: Europe boasts world-class research institutions and universities, driving cutting-edge research in machine learning, computer vision, and natural language processing. Some of the key institutions include:
The Confederation of Laboratories for Artificial Intelligence Research in Europe (CLAIRE), the world's largest network for AI research, has over 4,000 members and the support of nine advisory groups and the governments of nine European countries3.
The European Laboratory for Learning and Intelligent Systems (ELLIS), a pan-European AI network of excellence focusing on fundamental science, technical innovation, and societal impact. ELLIS manages research programs, a Ph.D. and Post-doc program, and oversees innovation labs and sites across Europe4.
The Tübingen AI Center, comprising 20 world-class machine learning research groups with more than 300 Ph.D. students and Postdocs. It boasts a state-of-the-art ML Cloud designed to meet the intense computing requirements of modern AI workloads5.
The Bosch Center for AI, located in Germany with branches around the world, focuses on six key areas of AI, including environmental understanding and decision-making, control optimization through reinforcement learning, and dynamic multi-agent planning6.
The UCL Centre for Artificial Intelligence, which runs innovation labs and graduate programs and leads AI research from around the world. It also focuses on promoting women in AI and provides a platform for academics and students to discuss ideas6.
The Alan Turing Institute, housed within the British Library, works to solve data science and artificial intelligence challenges. It started with five founding universities: Cambridge, Edinburgh, Oxford, UCL, and Warwick6.
Government Support: European governments actively support AI development through various initiatives. For example, the European Commission has launched the AI innovation package to help startups and SMEs in developing trustworthy AI2.
Focus on Ethical AI: Europe is a leader in developing ethical frameworks for AI, with a strong emphasis on human-centricity, transparency, and accountability. The EU AI Act, the first-ever comprehensive legal framework on AI worldwide, aims to ensure that AI systems are safe, trustworthy, and respect fundamental rights2. The EU AI Act categorizes AI technologies into risk classes with varying requirements7. It also emphasizes key ethical principles, including responsibility, fairness, transparency, data protection, and security7. The EU's Ethics Guidelines for Trustworthy AI highlight three components that companies should incorporate at each stage of AI design: lawfulness, ethical considerations, and robustness8.
Despite these strengths, Europe faces challenges in competing with the United States and China in AI:
Fragmentation: The European AI ecosystem is fragmented, with varying levels of investment and expertise across different countries9.
Talent Gap: While Europe has a strong talent pool, it faces a shortage of highly skilled AI professionals. Only 0.41% of EU workers are considered AI talent10.
Investment Gap: European AI startups receive less funding compared to their counterparts in the United States and China11.
Digital Skills Gap: A significant portion of the European population (42%) lacks basic digital skills, which hinders the adoption and development of AI technologies10.
Gender Gap: Women are underrepresented in the AI talent pool in Europe, making up only 26.3% of AI professionals10.
Asia
Asia is rapidly emerging as a global AI powerhouse, driven by significant investments in research and development, a growing talent pool, and supportive government policies. China, in particular, is making significant strides in AI, with companies like DeepSeek and Baidu challenging US dominance12. In the first half of 2025 alone, Southeast Asia attracted over US$30 billion in AI infrastructure investments14.
Key factors contributing to Asia's AI rise include:
Government Initiatives: Countries like China, Singapore, and South Korea have launched national AI strategies and initiatives to promote AI development and adoption. These initiatives include funding for research, development of AI infrastructure, and the establishment of regulatory sandboxes15. For example:
Singapore introduced three new AI governance initiatives: the Global AI Assurance Pilot, a joint testing report with Japan, and the Singapore AI Safety Red Teaming Challenge evaluation report16.
Singapore's National AI Strategy 2.0 (NAIS 2.0) aims to deepen the use of AI across various sectors, with a focus on global collaboration and addressing challenges in areas like population health and climate change15.
China has launched the AI Capacity-Building Action Plan for Good and for All, calling for increased investment in AI capacity-building and promoting AI literacy, data security, and safety17.
Technological Advancements: Asian countries are making significant progress in AI research, particularly in areas such as robotics, computer vision, and natural language processing. Institutions like Tsinghua University, the National University of Singapore, and KAIST are leading the way in AI innovation18.
Growing Talent Pool: Asia has a large and growing pool of AI talent, with universities and training programs producing highly skilled professionals18.
However, Asia also faces challenges in AI development:
Ethical Concerns: The rapid adoption of AI in Asia raises ethical concerns, particularly regarding privacy, bias, and the potential impact on society19. For example, the ASEAN Guide on AI Governance and Ethics (2024) highlights six risks of generative AI: mistakes and anthropomorphism, factually inaccurate responses and disinformation, deepfakes, impersonation, fraudulent and malicious activities, infringement of intellectual property rights, privacy and confidentiality, and propagation of embedded biases19.
Data Governance: The availability and accessibility of data for AI development remain a challenge in some Asian countries17.
Digital Divide: Unequal access to technology and digital infrastructure could exacerbate existing inequalities20.
AI and Inequality: AI has the potential to worsen inequality within and between countries in Asia21.
Global AI Divides
While AI is developing rapidly across the globe, significant disparities exist in research output and funding between different regions. An analysis of AI research publications from 2012 to 2023 reveals a clear dominance by the United States and China22. While these two countries have significantly increased their AI research output, the collective contribution from Africa, South America, and most Asian nations remains below 5%22.
This disparity is also reflected in AI research funding. While the United States maintains its dominance in AI research grants, Japan and China have made substantial gains, with China surpassing the European Union in the number of AI grants funded22.
Furthermore, there is a significant gap in AI talent distribution. Analysts attending international AI conferences observe that the majority of AI scientists are Chinese, regardless of their current location. This highlights the global competition for AI talent, particularly between the US and China23.
Data Localization and AI
Data localization, which involves keeping data within a country's borders, can impact AI development by limiting access to diverse datasets24. While data localization measures can enhance data security, they can also hinder the development of AI systems that require large and diverse datasets for training.
Major AI Research Centers and Companies Outside the US
Europe and Asia are home to a growing number of AI research centers and companies that are making significant contributions to the field.
Government Initiatives and Policies
Governments around the world are recognizing the importance of AI and are implementing policies to promote its development and adoption.
Europe: AI Governance Initiatives
The European Union is taking a leading role in AI governance, with the AI Act establishing a risk-based framework for AI regulation30. The AI Act aims to ensure that AI systems are safe, trustworthy, and respect fundamental rights2. The AI Act introduces a tiered approach for AI models, with stricter regulations for foundation models and generative AI30. It also mandates the designation of national competent authorities for market surveillance and conformity assessment31.
Other initiatives include:
The creation of AI Factories to support AI developers by providing access to supercomputing infrastructure and data32.
The GenAI4EU initiative to promote the development of novel use cases in various sectors, including robotics, health, and manufacturing32.
The InvestAI initiative to mobilize €200 billion for investment in AI, including a new European fund of €20 billion for AI gigafactories33.
Asia: National AI Strategies
Asian countries are also implementing AI policies, with a focus on promoting innovation and economic growth.
Singapore's National AI Strategy 2.0 aims to deepen the use of AI across various sectors, with a focus on global collaboration and addressing challenges in areas like population health and climate change15.
China has launched initiatives to support AI capacity-building and promote the responsible use of AI17.
Japan is taking a more cautious approach, favoring sector-specific regulations and voluntary risk-mitigation initiatives34.
AI Startups and Funding
Europe: Funding Trends
While the US still dominates AI startup funding, other regions are seeing significant growth. Europe's generative AI investment has increased from $2.4 billion in 2023 to $6.4 billion in 202411.
Asia: Key Startups
In Asia, several GenAI startups have secured significant funding, including:
Social+ (Thailand), which raised $90 million in Series C funding29.
Wiz (Singapore), which raised $58 million in Series B funding29.
Sprout Solutions (Philippines), which raised $18.3 million in Series B funding29.
Ethical Considerations and Debates
The rapid development of AI raises ethical considerations and debates worldwide.
Europe: Focus on Human Rights and Transparency
Europe is at the forefront of discussions on AI ethics, with a strong emphasis on human rights, fairness, and transparency35. The EU AI Act includes provisions to address potential risks such as bias and discrimination36. The CERTAIN project, funded by the EU, aims to develop tools for transparency and sustainability in AI, ensuring compliance with the EU AI Act37.
Asia: Regional and Global Frameworks
In Asia, ethical considerations are also gaining attention. The ASEAN Guide on AI Governance and Ethics promotes responsible AI development and deployment38. UNESCO's Recommendation on the Ethics of Artificial Intelligence provides a global standard for AI ethics, emphasizing principles such as human oversight, proportionality, safety and security, privacy and data protection, and fairness and non-discrimination39.
Social Inclusion and AI
AI has the potential to both exacerbate and mitigate social inequalities. In Europe, concerns have been raised about the potential for AI systems to perpetuate existing biases, leading to discriminatory outcomes in areas such as recruitment and social welfare36. In Asia, discussions are emerging about the implications of AI for social inclusion, particularly concerning vulnerable groups and the potential for AI to worsen existing inequalities40.
Impact of AI on Industries and Societies
AI is transforming industries and societies around the world.
Europe: Economic Growth and Labor Market Transformation
In Europe, AI is expected to have a significant impact on various sectors, including manufacturing, healthcare, and finance41. The European Commission estimates that AI could add €1.2-1.4 trillion to the EU's GDP in ten years42. AI is also expected to transform the European labor market, with the potential for both job displacement and the creation of new roles41.
AI is being adopted across various sectors in Europe:
High-tech industries, such as electronics, aerospace, and automotive, are using AI to reduce development time and improve product quality.
Resource-intensive sectors, like mining and oil and gas, are leveraging AI to boost efficiency and cut costs.
Pharmaceuticals and telecom are focusing on using AI for innovation and customer engagement, respectively43.
AI is also being used to support the green transition in Europe, with applications in renewable energy, transportation optimization, and environmental monitoring10.
Asia: Industrial Transformation and Societal Impact
AI is also transforming industries in Asia, with a focus on manufacturing, agriculture, and healthcare20. McKinsey predicts that AI could contribute an additional $1 trillion to Southeast Asia's economy by 203020.
Specific examples of AI applications in Asia include:
Manufacturing: AI-powered robotics and machine learning systems are being used to automate maintenance, increase production output, and improve supply chain management20.
Agriculture: AI is being used for precision agriculture, automated drones, and predictive analytics to optimize crop yields, monitor soil health, and improve logistics20.
Healthcare: AI is improving diagnostics, patient care, and drug discovery, with applications in telemedicine and AI-powered diagnostic tools20.
AI is also having a significant impact on Asian societies, transforming social interactions, public safety, healthcare, and employment44.
Environmental Sustainability and AI
The environmental impact of AI is a growing concern. In Asia, there is a need for sustainable practices in AI development and deployment, such as energy-efficient data centers and AI-driven initiatives that enhance environmental sustainability20.
AI and the Workforce
AI technologies are reshaping the workforce by automating jobs, altering the nature of work, and creating new roles that require more advanced skills44. This shift is causing both excitement about new opportunities and concern about job displacement and income inequality44.
In Europe, there is a growing concern about the use of algorithms to track worker performance and make decisions about tasks, performance evaluations, and promotions43.
Cultural Impact of AI
Beyond its technical prowess, AI's cultural impact is profound, influencing how we perceive ourselves, interact with technology, and construct our identities45.
AI is transforming creative expression, with algorithms capable of generating music, art, literature, and even films. This raises questions about the nature of artistry and the value we assign to human creativity45.
The portrayal of AI in popular culture also shapes societal perceptions and norms surrounding technology and identity. Science fiction narratives reflect broader societal anxieties and aspirations, fueling discussions about the ethical and existential implications of AI technology45.
AI and Geopolitics
AI is also contributing to geopolitical power imbalances, fueling the competition for technological supremacy and economic dominance46. The varying approaches to AI governance across different regions, such as the EU's focus on regulation and the US's emphasis on innovation, further contribute to these imbalances46.
AI and International Trade
AI is poised to have a transformative impact on international trade47. AI applications in areas such as data analytics and translation services are reducing barriers to trade47. AI can also be used to improve the efficiency of global value chains, enhance trade negotiations, and facilitate trade using digital platforms47.
However, there are challenges in the development of AI that international trade rules could address, such as improving global access to data for training AI systems and ensuring the protection of intellectual property47.
AI also has the potential to create wealth and contribute to economic growth, with implications for international trade patterns and competitiveness47.
Recent Developments in the AI Landscape
Europe
Dutch startup Bird, one of the Netherlands's highest-valued private tech companies, plans to move its main operations out of Europe due to restrictive AI regulations48.
US Vice President JD Vance warned against "excessive regulation" of AI at the AI Action Summit in Paris, highlighting the potential for overregulation to stifle innovation49.
Europe's new AI-powered weather forecasting model, AIFS, became operational, promising to significantly improve meteorological and extreme weather predictions globally50.
Tech giants, including Meta and Google, are pushing back against the EU AI Act, particularly the Code of Practice for general-purpose AI models51.
Asia
China's AI boom extends beyond DeepSeek, with tech giants like Baidu, Alibaba, and Tencent investing heavily in AI development13.
There has been a surge in China-linked cyber espionage driven by AI deception tactics, according to CrowdStrike's 2025 Global Threat Report52.
DBS, Singapore's largest bank, announced plans to reduce its workforce by approximately 4,000 roles over the next three years due to the increasing adoption of AI53.
DeepSeek's low-cost AI model has become a catalyst for real-world AI implementation at scale in China54.
Singapore will launch an applied AI initiative and two large-scale research programs under its next five-year strategic plan55.
Global
The US and UK refused to sign an AI Action Summit declaration calling for policies to ensure responsible AI development56.
US tech giants have empowered Israel to track and kill alleged militants in Gaza and Lebanon through increased AI and computing services57.
The Biden administration's AI Diffusion Rule, which caps the export of essential American AI components to many countries, is being debated58.
DeepSeek's rapid growth has raised national security concerns in the US59.
The Future of AI Outside the US
The future of AI outside the US is characterized by both challenges and opportunities.
Competition: The global AI landscape is becoming increasingly competitive, with regions like Europe and Asia vying for leadership in AI research and development.
Regulation: The varying approaches to AI governance across different regions will shape the future of AI development and deployment.
Ethics: Ethical considerations will continue to play a crucial role in shaping the future of AI, with ongoing debates about responsible AI development and the potential impact on society.
Collaboration: International collaboration will be essential to address the challenges and opportunities presented by AI, particularly in areas such as AI safety, data governance, and ethical standards.
Synthesis
This analysis reveals a dynamic and evolving global AI landscape, with regions outside the United States making significant strides in AI research, development, and adoption. Europe is leading the way in ethical AI development, while Asia is emerging as a powerhouse in AI innovation. Governments worldwide are implementing policies to promote AI while addressing its potential risks. As AI continues to transform industries and societies, international collaboration and responsible development will be crucial to ensure that its benefits are shared by all.
Credit: Google Research 1.5
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