The US is best positioned to gain from artificial intelligence, which has the potential to completely disrupt the world economy.
The research firm, Capital Economics evaluated which nations stand to benefit the most from the technology, which has witnessed a sharp increase in popularity since ChatGPT’s ascent, in a report released in September.
The United States of America topped the rankings, a fact strategists attributed to the nation’s high investment levels and elite institutions and universities. Second and third place went to Singapore and the UK, respectively.
AI has the potential to revolutionize productivity growth, but a number of factors will decide whether or not countries can take advantage of it, according to a team led by Mark Williams, chief Asia economist at Capital Economics.
The US is at the top. This implies that it will retake its position as the world’s leading technological power, as it has for the most of the last century or so. This is due to the system’s rapid growth, its magnitude, and the increase in both public and private expenditure in R&D,” they continued.
Entire ranking is shown here:
The paper states that China is not expected to gain as much. Because of Beijing’s stringent tech regulations, artificial intelligence will not expand as quickly as it could, according to Williams’ team, meaning the US will probably continue to be the greatest economy in the world.
According to the strategists, AI is likely to support the US economy in maintaining its lead over China in terms of GDP calculated using market exchange rates. Expectations that China’s economy will outpace the US will need to be further curtailed in light of the AI revolution.
The US economy is still growing strong in 2023 despite the Federal Reserve’s aggressive interest rate hikes, while China is experiencing deflation, a rise in youth unemployment, and a real estate market crisis that has contributed to the bankruptcies of significant developers like Country Garden and Evergrande.
