AI fuels geopolitical rivalry and reshapes job markets

Artificial intelligence is increasingly viewed as a central element of geopolitical power. The United States and China dominate AI development, but follow divergent paths: the US relies on private‑sector innovation, large‑scale data centre infrastructure and defense integration, while China pursues state‑directed autonomy and low‑cost open‑source chip production. In 2025 private AI investment in the US reached $285.9 billion, far outpacing China's $12.4 billion, and the US hosted roughly 1,953 AI start‑ups and 5,427 data centres, underscoring a stark investment gap. The global AI supply chain remains heavily dependent on Taiwan’s TSMC for advanced processors.

At the same time, AI is transforming labour markets, creating uncertainty about its overall employment impact. Automation is already reshaping sectors such as information technology, finance and customer service, while fields like education and health evolve more gradually. New occupations will arise, but their nature and volume are hard to forecast. Government policies, regulatory frameworks and workers’ ability to acquire new skills will significantly influence how AI reshapes jobs.