Key points
- Europe focuses on ethics and public investment
- Emerging economies carve niches in AI applications
- Future innovation depends on talent, policy, investment
ISLAMABAD: For decades, Silicon Valley has been synonymous with technological innovation. But as artificial intelligence becomes a central driver of economic and strategic power, the geography of innovation is increasingly shifting beyond the United States, with new global hubs emerging across Asia, Europe, and the Middle East.
According to the Stanford Institute for Human-Centered Artificial Intelligence (HAI), the United States and China continue to dominate advanced AI development, but other regions are rapidly closing the gap. Its AI Index Report notes growing investment, research output, and startup activity in countries such as India, South Korea, the United Arab Emirates, and several European states, signalling a more multipolar AI landscape.
China’s technology ecosystem, centred around cities like Shenzhen and Beijing, has benefited from strong state support, large-scale data availability, and close ties between government and industry. Meanwhile, Europe has positioned itself as a leader in AI governance and research ethics, with countries such as France and Germany investing heavily in public-sector innovation and regulation-driven development.
Traditional power centres
Beyond traditional power centres, emerging economies are also carving out specialised niches. India has become a major hub for AI talent and software services, while African startups are applying machine learning to agriculture, fintech, and healthcare, often focusing on local challenges overlooked by global tech giants. In the Gulf region, massive public investments aim to diversify economies and position AI at the core of future growth strategies.
This decentralisation of innovation is reshaping global competition. Rather than a single dominant centre, AI development is now influenced by regional priorities, political systems, and social needs. However, access to advanced computing infrastructure and capital remains uneven, raising concerns that smaller players may still struggle to compete at scale.
As artificial intelligence continues to evolve, experts say the future of innovation will depend less on geography alone and more on how effectively countries combine talent, policy, and investment—marking a decisive shift away from a Silicon Valley–centric tech world.
