BofA Identifies South Korea, UAE as Top AI Contenders Beyond US and China

A new report from Bank of America has identified South Korea and the United Arab Emirates as the leading contenders in the global artificial intelligence race, trailing only the dominant hubs of the United States and China. The analysis suggests that instead of competing directly, other nations are positioning themselves to capture AI-driven growth by specializing in key areas like semiconductor supply chains and data-center investment.

A Concentrated Landscape

The global AI field remains highly concentrated around its two biggest players, according to the BofA report. The United States maintains its lead through superior private investment, advanced chip design, and computing infrastructure. Meanwhile, China leverages its vast manufacturing scale, lower energy costs, and its dominance in processed critical minerals essential for technology production.

The Leading Challengers

Bank of America named South Korea as the strongest overall AI contender for both the short and long term. The country's strategic position is built on a combination of factors:

• Deep exposure to the semiconductor manufacturing supply chain.
• Rapidly expanding AI adoption across its economy.
• Supportive government policies fostering innovation.
• A strong capacity to translate AI deployment into long-term productivity gains.

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The United Arab Emirates was also highlighted as a top contender, supported by significant government investment, abundant energy resources, and one of the world's highest rates of AI adoption. The report did, however, note that geopolitical risks remain a key uncertainty for the region.

Other Notable Players and Key Trends

The report identified a strong second tier of AI leaders that includes Canada, Germany, Israel, the Netherlands, Singapore, Switzerland, and the United Kingdom. Among emerging markets, BofA pinpointed India as the clearest long-term challenger, citing its large and growing AI adoption market, though it currently lacks the semiconductor manufacturing base of its Asian peers.

Taiwan, Australia, and Japan were noted as near-term beneficiaries of the global AI infrastructure build-out, thanks to their critical roles in chips, minerals, and data-center components. The analysis also underscored that abundant and reliable energy is becoming an increasingly important competitive advantage, giving an edge to nations like Canada, France, and the UAE as data-center power demands expand.