The State of AI Competition in Advanced Economies

Author

Alex Haag

Posted to EERN: January 13, 2026

FEDERAL RESERVE RESEARCH: Board of Governors

Global competition in artificial intelligence (AI) has intensified in recent years. Some assessments emphasize US exceptionalism, while others argue that China is eroding US dominance. By contrast, the progress of other advanced foreign economies (AFEs) receives far less attention. Existing cross-country comparisons rely largely on composite indices that, while useful as benchmarks, are subject to weighting and aggregation biases that may obscure important dimensions of AI capacity. A clearer understanding of cross-country AI capabilities can help better contextualize global AI competition. This note brings together international comparisons on key metrics to assess countries’ relative preparedness and performance in AI.

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