AI and Big Data: A Global Megatrend Reshaping Economies
"Artificial Intelligence marks a pivotal point in technological advancement, similar to industrial revolutions of the past."
In a rapidly evolving digital landscape, artificial intelligence (AI) and big data are emerging as globally dominant megatrends. These transformative technologies are poised to revolutionise various sectors, from retail and consumer goods to education, healthcare, and the public sector.
According to PwC, the highest impact of AI is expected in these areas, with China leading the charge in sectors like telecommunications and e-commerce. Meanwhile, Europe and Germany, in particular, are lagging behind compared to other regions.
United States: AI Leadership and Investment
The US remains at the forefront of AI development, with major companies like Google (Alphabet), OpenAI, Databricks, Palantir Technologies, and Moveworks spearheading innovation. Google, with its enormous website traffic and broad AI investments, remains dominant. OpenAI, famous for ChatGPT, retains a high profile and growing user engagement.
Palantir focuses on AI analytics platforms for government and enterprise, servicing clients like the U.S. Department of Defense and large corporations. Databricks is heavily invested, recently raising $5.25 billion in Series J funding to enhance its unified AI and analytics platform.
Key startups like Moveworks, specialising in workplace AI using natural language understanding, have also secured significant funding. Other notable AI-focused startups include AppLovin (mobile app AI), Cerence (AI assistants for cars), and Quantum Computing Inc. (quantum computing hardware relevant for AI).
Recent funding rounds have seen substantial capital inflows, with Databricks achieving a $14.7 billion valuation and Moveworks securing $315 million. Public AI stocks in the US, such as Alphabet, Amazon, Microsoft, Adobe, and Palantir, are also prominent.
China: AI Innovation Amidst Market Challenges
China's AI landscape is marked by significant players like Tencent, Alibaba, Baidu, and DeepSeek. Despite some market volatility due to geopolitical and tariff tensions, Chinese AI companies continue to attract significant investment and maintain innovation momentum, particularly in AI research labs and AI-powered internet services.
Europe: Emerging AI Landscape and Emphasis on Ethics
Though Europe’s specific players are less highlighted, firms like EPAM Systems (with a global presence, including Europe) feature as notable AI-related companies. Europe's AI landscape features growing venture-backed startups and an emphasis on AI ethics and regulation compared to the US and China.
The AI Stock Market: A Rewarding, Volatile Landscape
The AI stock market remains volatile but rewarding. Indexes like Morningstar's Global Next Generation Artificial Intelligence Index provide a 10.41% return year-to-date as of June 2025, outpacing broader markets. Venture funding for AI remains strong globally, with a focus on next-generation models, platforms, and hardware.
The Future of AI: Transforming Industries and Economies
As AI continues to advance, it's expected to generate significant economic impact. By 2030, AI is expected to account for 14.5 percent of GDP in North America, totalling 3.7 trillion dollars. In Europe, AI is expected to generate 1.8 trillion dollars annually, accounting for 9.9 percent of GDP. In China, AI is expected to contribute more than a quarter of the country's economic output by 2030, totalling 7 trillion dollars or more.
However, public skepticism towards AI is widespread in Europe, particularly among baby boomers, with only 13% seeing benefits and nearly a third highlighting risks. In contrast, companies from the United States lead in big data and AI, with more risk capital available for startups.
The automotive industry is undergoing a dramatic transformation due to AI, with Alphabet's subsidiary Waymo already logging millions of real-world test miles on American roads. Germany aims to increase its AI experts from 1,000 to 4,000 and invest 4 billion euros by 2021.
Despite these efforts, Germany's total GDP is only half of the expected AI contribution to China's GDP in 2030. This disparity underscores the need for Europe to address its lagging position in AI development and adoption.
AI is expected to create new jobs, with highly automated production potentially leading to a reshoring of production from abroad and the creation of new jobs. However, up to 20% of jobs in Germany could be threatened by AI, according to a study by the OECD.
Roland Berger CEO Charles-Édouard Bouée believes that AI will determine the success or failure of entire economies, similar to the PC, the internet, and mobile technology. Roland Berger estimates there will be 2.5 million autonomous shuttle buses on the roads worldwide by 2026.
Capital investors can invest in Chinese or US titles with AI business models, regardless of the leading countries in AI development. However, Europe lacks a state-organized and supported framework for AI compared to the USA and China.
In conclusion, AI and big data are reshaping the global economic landscape, with the US, China, and Europe leading the way in different aspects. As AI continues to advance, it's crucial for countries to invest in AI development, address ethical concerns, and prepare for the potential job displacement and creation that this technology will bring.
Economic and social policy should focus on investing in artificial-intelligence (AI) research and development to stay competitive in the global market. technology advancements in AI have the potential to revolutionize industries and significantly contribute to a country's economic output, with China, the US, and Europe leading in different sectors.
