AI drives unprecedented global transformation

The artificial intelligence market is projected to reach $17.7 trillion by 2030. This explosive growth is largely fuelled by investments pouring in from the tech giants and major world powers, with the United States, the European Union, and China leading the charge. Behind these staggering numbers lies the potential for AI to reshape economies, and an emerging race for technological and cultural leadership.

Capital powering profound social change

The concept of artificial intelligence can be traced back to the early half of the 20th century and the invention of the first computers. Since then, the technology has advanced in leaps and bounds, propelled by generative AI and its ability to create content (text, images etc.) from existing data. Governments and private enterprise are investing massively to harness the transformative power of AI with one clear objective: to boost competitiveness.

AI promises to upend supply chains from end to end and reshape every sector of the economy, from medicine to industry and marketing. According to the World Economic Forum, 50% of employers expect AI to lead to jobs growth by 2030, while 25% think it will result in job losses. Over the past few years, analyses of the transformational impact of AI have highlighted aspects such as the jobs where humans could be replaced, the efficiency gains generated by automation and new ways of working. A 2023 report by Goldman Sachs, a leading global investment bank, predicted 300 million jobs could be lost by 2030. In January 2025, Donald Trump lost no time in announcing the Stargate initiative, a $500 billion “moonshot” to build next-generation AI infrastructure and create “more than 100,000 immediate jobs” in the US. In reality, it is hard to predict the net effect on jobs. But what we can say for certain is that the jobs of the future will not be the jobs we know today.

The global AI race is on and governments are working hand-in-hand with tech to stay ahead

$17.7 trillion. That’s the estimated value of the global AI market in 2030, which is roughly equivalent to China's current GDP. This estimate is closely linked to the productivity gains and the ripple effects generated by the technology.

The stakes are high as countries compete to take the lead. The technology is advancing rapidly in a geopolitical landscape where the United States and China dominate the AI value chain. In a push to win the economic AI war, the Trump administration has announced at least $500 billion in funding over four years for Stargate, a private-sector initiative, to keep AI technology in the US. China plans to invest $140 billion over five years. Staying in China, start-up DeepSeek recently stunned the AI world when it released its – far cheaper – rival to ChatGPT. DeepSeek cost $5.6 million to build, a fraction of the $100 million price tag for the latest model of the US model.

The European Union sees itself as the third way: it wants to develop sustainable, ethical AI bounded by regulation. The AI revolution also raises questions of sovereignty and soft power. France will invest €109 billion in AI in the near term, while in February 2025, European Commission president Ursula von der Leyen pledged a record €200 billion in funding to accelerate AI development and foster the emergence of European champions. In its bid to lead the AI race, the EU is developing the largest public-private partnership in the world in an alliance known as the EU AI Champions Initiative, financed by large corporates to the tune of €150 billion. Over 60 companies are already on board.

Yet, there’s no denying that Europe lags behind the US tech giants. And catching up will be hard to do. The big 5 tech leaders are set for record investment in 2025: $100 billion for Amazon, $80 billion for Microsoft, $75 billion for Google, and $65 billion for Meta, bringing the total to $320 billion, twice as much as in 2023. Although Europe is playing catch-up, the global AI race is just beginning.

AI Factories EU (source: press release - 12 March 2025 - Digital EU)