Who's Winning the Global AI Race?

The Digital Transformation Playbook

The Digital Transformation Playbook
Who's Winning the Global AI Race?
Jul 09, 2025
Kieran Gilmurray

Generative AI has transformed from an academic curiosity to a worldwide phenomenon at breath-taking speed. This paradigm shift presents extraordinary opportunities alongside profound challenges that demand careful navigation.

TLDR:

  • Fresh analysis from the EU Science Hub's 2025 Generative AI Outlook Report
  • China leads in AI activity volume, followed by the US, with EU in third place at 7% of global AI players
  • One US supercomputer potentially outperforms all EU top supercomputers combined
  • EU regulation focuses on a risk-based approach through the AI Act, DSA, and GDPR
  • Technical challenges include benchmark limitations and new cybersecurity threats
  • Information integrity at risk from AI-generated misinformation and disinformation
  • Jobs shifting rather than disappearing, requiring new skills to work alongside AI
  • Digital skills gap growing as AI literacy becomes increasingly critical

Diving deep into the EU Science Hub's comprehensive 2025 Generative AI Outlook Report, we explore the rapidly evolving global AI landscape where China leads in sheer volume of activity, followed by the US, with Europe holding 7% of global AI players. The competitive dynamics reveal stark disparities - particularly in computing power, where a single American supercomputer might outperform all of Europe's top machines combined.

The data feeding these systems raises equal concern. We examine how bias in training data gets absorbed and amplified by models, connecting to crucial debates between open-source and proprietary approaches. Europe's regulatory framework stands as a potential model, with the AI Act employing a risk-based system alongside the Digital Services Act and GDPR to create guardrails for responsible development.

Looking beyond technical specifications, we explore GenAI's profound societal impacts. From information integrity challenges and threats to digital commons to sector-specific transformations across healthcare, education, cybersecurity, and public services. The economic implications prove particularly nuanced - rather than simple job displacement, we're witnessing fundamental shifts in required skills and work patterns.

As these systems grow more sophisticated, blurring lines between tools and collaborators, we face increasingly complex questions: How do we ensure technology development aligns with human values? Can we harness enormous potential while effectively managing risks? What skills will tomorrow's workforce need? Join us as we navigate the fascinating, sometimes frightening frontier of our AI-augmented future.

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