As 2025 unfolds, the competition between the United States and China for AI supremacy is set to escalate, significantly impacting both military and economic sectors. This rivalry is characterized by contrasting strategies: while the US emphasizes private sector innovation and ecosystem development, China leverages its strengths in data collection and government support. Notably, OpenAI and Microsoft have released advanced AI tools as of December 2024, showcasing the US's leading position in AI technology [6ce2f363].
In response to this growing competition, incoming US President Donald Trump has outlined a strategic approach that positions AI as a critical tool for the US to outpace China. Trump plans to repeal President Biden's executive order that aimed to balance innovation with civil rights and ethical use, indicating a shift towards deregulation that prioritizes national security and economic competition [0568a838]. This policy change could have significant implications for the Global South, which is projected to capture only 16% of the anticipated US$15.7 trillion AI growth by 2030, with North America, China, and Europe expected to dominate the remaining share [0568a838].
China has also been proactive, establishing a technical committee on December 30, 2024, dedicated to advancing AI applications, which underscores its commitment to being a major player in the global AI landscape [6ce2f363].
India, currently ranked seventh in the global AI hierarchy, stands to benefit from this intense US-China competition. However, the country faces significant challenges, particularly in talent acquisition and retention, which are crucial for fostering a robust AI ecosystem. The potential for collaboration between the US and India in talent acquisition could play a pivotal role in shaping the future of AI in the region [6ce2f363].
The Global INDIAai Summit, which recently concluded in New Delhi, highlighted India's commitment to democratizing AI and fostering collaboration among global experts. This event, attended by 12,000 AI professionals, emphasized the importance of a multi-stakeholder approach to AI development, which could position India as a key player in the ongoing global AI discourse [638970ab].
Meanwhile, geopolitical shifts in the Middle East are marked by temporary ceasefires and strategic recalibrations among key players such as Saudi Arabia, Turkey, Iran, and Israel. Donald Trump is expected to advocate for 'Abraham Accords 2.0', which may influence regional dynamics and the broader geopolitical landscape [a7fd1ec2]. Iran's asymmetric warfare capabilities pose challenges, while Turkey's President Erdoğan balances NATO ties with regional ambitions [a7fd1ec2].
As Malaysia chairs ASEAN in 2025, it faces the dual challenge of navigating the US-China rivalry and China's economic slowdown. The country could benefit from diversifying its supply chains amidst these tensions [a7fd1ec2]. Furthermore, the expansion of BRICS presents both opportunities and risks, emphasizing the need for Malaysia to invest in AI and navigate these challenges to secure its future [a7fd1ec2].
However, many nations in the Global South lack the infrastructure to compete effectively in AI, exemplified by the absence of top supercomputers in sub-Saharan Africa. The removal of US safeguards could lead to a race to lower standards, undermining international commitments to ethical AI development [0568a838]. The UN General Assembly's resolution from March urges states to avoid AI systems that violate human rights, highlighting the need for ethical considerations in the face of rapid technological advancement [0568a838].
As the US and China continue to vie for AI dominance, India's strategic positioning and collaborative efforts could enable it to carve out a significant role in the evolving AI landscape, potentially serving as a bridge between the two superpowers. Meanwhile, the Global South must navigate the challenges posed by the US's deregulation and the competitive pressures from both superpowers [6ce2f363].