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The United Kingdom, United Arab Emirates, and India’s Diverging Approaches in Pursuit of Global Tech Leadership
The race for global supremacy in artificial intelligence (AI) is unquestionably dominated by the U.S. and China. The two powers are locked in a so-called ‘New Digital Cold War,’ carving out spheres of influence along the gamut of AI development, from chip manufacturing to model deployment to governance. 62% of the top corporate R&D investors are headquartered in the U.S. and China, and the countries hold 60% of the world’s AI patents. As leaders in Beijing and Washington jockey for influence and draw other countries into the fold, it is tempting to characterise the situation as a straightforward zero-sum rivalry.
The reality is more complicated, with established tech powerhouses, emerging economies and regional alliances all vying for greater AI market share. Rounding out the top five on Stanford University’s Global AI Power Rankings after the U.S. and China are three countries betting on themselves to disrupt the AI balance of power: the United Kingdom (3), India (4) and the United Arab Emirates (5). Each of them approach global tech leadership from different angles, reflecting their different comparative strengths and ambitions.
India’s established technological capabilities, skilled workforce and lower costs could make the country competitive in AI. To complement this, the country has engaged in pragmatic tech diplomacy, positioning itself as an essential partner for global AI collaboration. India served as the chair of the Global Partnership on Artificial Intelligence before handing the reins to Serbia in 2024, and the country was a signatory and co-chair to the Paris AI Action Summit and its declaration on ethical AI governance in February 2025. Meanwhile, India is in the process of setting up its AI Safety Institute (AISI) as part of an international commitment to ‘develop an international network among key partners to accelerate the advancement of the science of AI safety.’
While international collaboration on AI is important in its own right to address shared challenges posed by the emerging technology, how does this leadership play into India’s broader economic ambitions? To start, establishing New Delhi as a respected voice in global discussions on AI governance early can strengthen the country’s overall AI reputation and market position. Regulatory uncertainty can make markets less attractive as a destination for AI development, particularly for small and medium enterprises. Dictating the terms of AI regulatory regimes by playing a leading role in their early development can give countries like India an edge in attracting AI investment.
Similarly, collaboration on AI can lead to technical harmonisation and standards, benefitting producers and consumers alike by easing trade barriers. The 2024 Seoul declaration of intent toward AISI collaboration states that the network will ‘promote the development and adoption of international standards’ and establish ‘shared technical resources’ between key partners. Shared standards setting can facilitate greater trade linkages between countries, and is particularly important for emerging technologies like AI. Standards has become a typical principle many digital free trade agreements, so proactively establishing common operability requirements could also make it easier for India to negotiate bona fide free trade agreements related to AI in the future.
This tech diplomacy can also connect and deepen relationships between Indian enterprises and startups with their counterparts in other markets to share good practices and forge collaborative initiatives. This company-to-company peer engagement complements more formal top-down interventions to ensure that India remains globally competitive on AI.
Though a small country in terms of landmass and population, the UAE has capitalised on its strategic location at the crossroads of the Asian, European and African continents to punch above its weight class on international trade. AI is no different: the main pillar of the UAE’s National AI Strategy is to ‘Build a reputation as an AI destination.’ The explicit allusion to geography and the centrality of this principle in the country’s overall AI strategy makes clear that geographic advantage is a cornerstone of their global AI leadership goals.
By consistently referring to ‘building bridges’ or acting as a ‘hub’ connecting various markets, the UAE’s AI strategy could appeal to countries who are not looking to align fully with either the U.S. or China. ‘The UAE has always been the bridge between East and West, and between North and South,’ UAE Minister of State for Artificial Intelligence Omar Sultan Al Olama said at an October 2024 plenary. The country has long opted for a balanced approach to managing relations with Washington and Beijing, and their AI strategy falls into lock step with this ethos. This could lead to deeper trade relationships with countries looking to invest in or partner on AI but that want to avoid getting boxed in by strong allegiances in the bipolar system.
The National AI Strategy also highlights that over 85 million people pass through the country’s two major airports each year, as well as over 2 billion people connected to the country through Jebel Ali port, the largest marine terminal in the Middle East. This could provide a huge market for AI integration in transit, people management, and hospitality, forming a potential sector-specific comparative advantage.
The UAE has long attracted migrants, with expatriates now outnumbering UAE-born nationals within the country. The National AI Strategy emphasises suitability for potential relocation of foreign AI talent, particularly from Africa and the Middle East.
However, the UAE faces competition on this front from Saudi Arabia, which recently announced Project Transcendence, a 100 billion USD investment to establish the Kingdom as a leader in artificial intelligence and emerging technologies. The two countries employ similar strategies – including the balancing act with the U.S. and China– to attract foreign talent and investment. Riyadh’s recent AI-related agreements with Google and KPMG will make Saudi Arabia a lucrative destination for regional AI leadership, so UAE may need to continue strengthening and diversifying efforts to stay competitive.
The United Kingdom laid out its AI Opportunities Action Plan in early 2025, outlining how the country plans to ‘shape the AI revolution rather than wait to see how it shapes us.’ The U.K. is closely allied to Washington amid the U.S.-China technology rivalry. Yet London increasingly recognises that domestic AI capacity will be essential, not only to remain globally competitive but to solve entrenched national challenges like healthcare.
The UK’s Labour government has committed to increase R&D intensity to 2.4% by 2027, which will necessitate a major scaling up of research infrastructure across the country. Central to these aspirations is shoring up the existing ecosystem of academic-led scientific discovery in the U.K., which positions the country well to be a leader in AI development.
The country is home to world-renowned research and academic institutions, providing a fertile ground to withstand AI’s impacts on R&D infrastructure needs.
Crucially, these plans do not just address R&D relating to AI itself– but also the energy demands necessary to support increases in compute. The strategy document outlines the importance of securing ‘home-grown’ energy, an ambition that must also be squared with the government pledge to secure at least 95% clean power by 2030.
The U.K. was early to adopt an academia-driven AI innovation approach, including a flagship national institute for data science and artificial intelligence, the Alan Turing Institute (ATI) in 2015. The Institute is a joint venture between the Universities of Cambridge, Edinburgh, Oxford, University College London and Warwick alongside eight additional university partners. Shoring up the capabilities and global relevance of the Institute amid recent upheaval will be necessary but not sufficient to foster AI leadership. Other academia-centered stipulations in the AI Action Plan include:
Beyond these, strengthening academic consulting and contracting relationships with industry through the establishment of liaison offices and clarifying AI-related intellectual property subtleties can further the UK’s tech leadership.
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