**The Economies Expected to Benefit Most From AI**
– Capital Economics ranks US, Singapore as main winners from AI
– Convergence between EMs and advanced economies will slow
Artificial intelligence will boost economic growth in the US and other advanced economies more than in China and emerging economies, and will add to global competition between Washington and Beijing.
That’s according to a study from Capital Economics, which ranks countries according to their potential to benefit from AI. The US tops the rankings, followed by Singapore, the UK and Switzerland.
China ranks around the middle of the group of 33 countries, with its strong innovation capacity and large investment in AI offset by a strict regulatory approach that can slow the spread of AI technology, according to the report.
“AI is likely to help the US economy sustain its primacy over China in terms of GDP measured at market exchange rates,” Capital Economics’ researchers including Mark Williams, chief Asia economist, wrote in the report. “The AI revolution is another reason to think that expectations of China’s economy streaking ahead of the US will have to be further reined back.”
China will also have to work around US restrictions on exports of microchips used for AI processing. That means the “AI ecosystem in China will develop independently of that in the West,” according to the report.
**Emerging Market Gap**
Rivalry between China and the US for market leadership in AI may have “positive spillovers” for other countries, the researchers said.
“If the two sides push to have their machine learning tools adopted first to take advantage of network effects, the result could be faster global diffusion of cutting edge technology,” according to the report.
But the most likely outcome is that wider use of AI “will amplify a shift in the global trajectory that’s been underway for a while: a slowdown in the rate at which average emerging market incomes are catching up with developed-world incomes compared to the ‘EM Golden Age’ of the 2000s and early-2010s,” it said.
It seems that regulation and lack of innovation are the major bottle necks for Europe. I hope that lawmakers realize the potential that AI has and place as little restriction as needed. In terms of innovation I think Europe could achieve much more if we would strengthen the cooperation between industry and academia. The European academic landscape is much larger than for example the American one. We have a lot of good universities whereas they “only” have a small number of extremely good universities with a very good connection to the industry. So if we managed to build upon our advantage in terms of numbers that could be a way.
What is this ranking again. Economist aren’t already the best to makes prediction, but creating ranking from data with opacity is really weird
I don’t understand this chart, anyone care to explain?
The EU it’s not the leader in AI, innovation or economic growth, but at least we are The Leaders in overregulation and bureaucracy
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[Source](https://www.bloomberg.com/news/articles/2023-09-26/ai-means-china-s-economy-will-keep-lagging-us-new-report-shows)
Article:
**The Economies Expected to Benefit Most From AI**
– Capital Economics ranks US, Singapore as main winners from AI
– Convergence between EMs and advanced economies will slow
Artificial intelligence will boost economic growth in the US and other advanced economies more than in China and emerging economies, and will add to global competition between Washington and Beijing.
That’s according to a study from Capital Economics, which ranks countries according to their potential to benefit from AI. The US tops the rankings, followed by Singapore, the UK and Switzerland.
China ranks around the middle of the group of 33 countries, with its strong innovation capacity and large investment in AI offset by a strict regulatory approach that can slow the spread of AI technology, according to the report.
“AI is likely to help the US economy sustain its primacy over China in terms of GDP measured at market exchange rates,” Capital Economics’ researchers including Mark Williams, chief Asia economist, wrote in the report. “The AI revolution is another reason to think that expectations of China’s economy streaking ahead of the US will have to be further reined back.”
China will also have to work around US restrictions on exports of microchips used for AI processing. That means the “AI ecosystem in China will develop independently of that in the West,” according to the report.
**Emerging Market Gap**
Rivalry between China and the US for market leadership in AI may have “positive spillovers” for other countries, the researchers said.
“If the two sides push to have their machine learning tools adopted first to take advantage of network effects, the result could be faster global diffusion of cutting edge technology,” according to the report.
But the most likely outcome is that wider use of AI “will amplify a shift in the global trajectory that’s been underway for a while: a slowdown in the rate at which average emerging market incomes are catching up with developed-world incomes compared to the ‘EM Golden Age’ of the 2000s and early-2010s,” it said.
It seems that regulation and lack of innovation are the major bottle necks for Europe. I hope that lawmakers realize the potential that AI has and place as little restriction as needed. In terms of innovation I think Europe could achieve much more if we would strengthen the cooperation between industry and academia. The European academic landscape is much larger than for example the American one. We have a lot of good universities whereas they “only” have a small number of extremely good universities with a very good connection to the industry. So if we managed to build upon our advantage in terms of numbers that could be a way.
What is this ranking again. Economist aren’t already the best to makes prediction, but creating ranking from data with opacity is really weird
I don’t understand this chart, anyone care to explain?
The EU it’s not the leader in AI, innovation or economic growth, but at least we are The Leaders in overregulation and bureaucracy