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How Experts Think AI Will Change the Global Balance of Power by 2035 – cfr.org

The dawn of the 21st century heralded a new era of technological advancement, but none perhaps as profoundly impactful on the global stage as Artificial Intelligence (AI). Far from being a mere computational tool, AI has rapidly ascended to become a foundational technology, poised to redefine every facet of human endeavor, from economic productivity to military strategy and societal structures. As experts cast their gaze towards 2035, a consensus emerges: AI is not just changing the world; it is fundamentally reshaping the global balance of power, ushering in an era of unprecedented geopolitical dynamism and potential upheaval. This comprehensive analysis delves into the intricate ways AI is expected to catalyze these shifts, examining the economic, military, social, and ethical dimensions that will collectively dictate the global order by the middle of the next decade.

Table of Contents

The Dawn of an AI-Driven Geopolitical Era

The global landscape is in constant flux, shaped by technological breakthroughs, economic shifts, and evolving geopolitical ideologies. However, few phenomena possess the transformative potential of Artificial Intelligence. Experts, policymakers, and strategists worldwide are grappling with the multifaceted implications of AI, predicting profound shifts in the global balance of power by 2035. This isn’t merely an incremental advancement; it’s a foundational paradigm shift, challenging existing hierarchies, forging new alliances, and creating unprecedented vectors of influence and vulnerability. The race for AI supremacy is now understood as a critical determinant of national security, economic prosperity, and international standing. Understanding how this technological revolution will unfold and its precise impact on global power dynamics requires a deep dive into its various applications and the strategic responses of leading nations and institutions.

AI Supremacy: The New Race for Global Dominance

For centuries, global power has been defined by territorial control, economic might, and military strength. In the 21st century, these metrics are increasingly intertwined with technological prowess, with Artificial Intelligence emerging as the ultimate force multiplier. The pursuit of AI supremacy has become a defining characteristic of contemporary international relations, drawing parallels to historical arms races and technological competitions.

AI as a National Strategic Imperative

Nations across the globe have recognized AI not merely as a sector of economic growth but as a strategic national imperative. Government reports, policy papers, and significant funding initiatives underscore this realization. Countries like the United States, China, and the European Union are pouring billions into AI research and development, establishing national strategies that aim to cultivate domestic talent, secure crucial supply chains, and foster an ecosystem conducive to AI innovation. This collective ambition mirrors the space race of the Cold War era or the nuclear arms race, where technological superiority was directly equated with national security and global influence. The competition is not just about creating the most advanced algorithms; it’s about embedding AI into every fabric of society, from public services to defense systems, thereby gaining a decisive advantage in the geopolitical arena. This strategic prioritization highlights a fundamental belief: the nation that masters AI will wield unparalleled power by 2035.

The Pillars of AI Power: Data, Talent, and Computational Might

Achieving AI supremacy rests on three interconnected pillars: access to vast, diverse, and high-quality data; a robust pool of skilled AI talent; and formidable computational infrastructure. Data is often dubbed the “new oil” because it fuels AI algorithms, enabling them to learn, adapt, and make predictions. Nations with large populations and sophisticated digital infrastructures, such as China, possess inherent advantages in data generation and collection. However, data privacy regulations and ethical considerations, particularly prevalent in democratic societies, introduce complexities to this quest. The battle for data extends beyond mere volume; it encompasses the ability to process, secure, and leverage it effectively.

Equally critical is talent. The global demand for AI researchers, engineers, and ethicists far outstrips supply. Countries are engaged in an intense competition to attract, retain, and develop top-tier AI professionals through educational reforms, research grants, and immigration policies. The migration of AI talent can significantly shift a nation’s capabilities, underscoring the human element in this technological race. Finally, computational power, particularly advanced semiconductors and supercomputing capabilities, serves as the engine for complex AI models. The ability to design, manufacture, and deploy cutting-edge chips is a bottleneck for many nations, creating critical dependencies and opening new fronts in technological competition. Control over these three pillars grants a nation a potent form of leverage, shaping its economic competitiveness, military readiness, and overall global standing by the year 2035.

Redefining Military Might and Geopolitical Strategy

Perhaps nowhere is AI’s transformative potential more starkly evident than in the military domain. The integration of AI into defense systems is not merely an upgrade; it represents a fundamental re-imagining of warfare, intelligence, and strategic power projection. By 2035, military capabilities will be intrinsically linked to a nation’s AI prowess, altering the calculus of deterrence, offense, and defense.

The Rise of Autonomous Weapon Systems and Ethical Dilemmas

Autonomous weapon systems (AWS), often referred to as “killer robots,” represent one of the most contentious and revolutionary applications of AI in warfare. These systems, capable of identifying, selecting, and engaging targets without direct human intervention, raise profound ethical, legal, and humanitarian questions. While proponents argue that AWS could reduce human casualties, act with greater precision, and operate in environments too dangerous for humans, critics fear a future of unchecked automated warfare, reduced accountability, and the potential for rapid escalation. The development of AWS is accelerating, and by 2035, their deployment could significantly alter combat doctrines and the very nature of conflict. Nations possessing superior AWS could gain a decisive battlefield advantage, potentially rendering traditional military assets obsolete and destabilizing existing power balances. The international community is actively debating the need for regulations, or even outright bans, on such weapons, highlighting a critical tension between technological advancement and moral responsibility that will shape future geopolitical norms.

AI in Intelligence, Surveillance, Reconnaissance, and Cyber Warfare

Beyond autonomous weapons, AI is revolutionizing intelligence, surveillance, and reconnaissance (ISR) capabilities. AI-powered analytics can process vast amounts of data from satellites, drones, and intercepted communications at speeds impossible for humans, identifying patterns, predicting threats, and providing real-time situational awareness. This enhancement of intelligence gathering allows nations to anticipate geopolitical shifts, monitor adversaries more effectively, and conduct more targeted operations. Furthermore, AI is becoming an indispensable tool in cyber warfare. On the offensive side, AI can automate target identification, exploit vulnerabilities, and launch sophisticated attacks at scale and speed. Defensively, AI systems can detect novel threats, analyze malware, and fortify digital infrastructures against state-sponsored attacks. The integration of AI into ISR and cyber operations creates a constant, invisible battleground where advantage is measured in algorithms and data processing speeds. By 2035, a nation’s ability to wage and defend against AI-powered cyber warfare will be a critical component of its overall security posture and a key determinant of its global influence, blurring the lines between peace and conflict.

AI’s Impact on Deterrence, Escalation, and Conflict Dynamics

The proliferation of AI in military applications carries significant implications for established concepts of deterrence and escalation. Traditional deterrence, often based on mutually assured destruction (MAD) in the nuclear age, relies on predictable responses and clear red lines. However, AI introduces new variables. The speed of AI-driven decision-making, the potential for autonomous systems to act without human oversight, and the ‘black box’ nature of some algorithms could lead to miscalculation or rapid escalation in a crisis. A conflict fought with AI-powered systems might unfold at speeds unimaginable today, potentially bypassing traditional diplomatic off-ramps and increasing the risk of unintended consequences. Moreover, AI can enhance the effectiveness of hybrid warfare tactics, enabling sophisticated disinformation campaigns, precision psychological operations, and targeted disruptions of critical infrastructure, all without overt military engagement. By 2035, the global balance of power will be profoundly affected by which nations can effectively integrate AI into their strategic thinking, develop robust AI ethics frameworks for military use, and manage the inherent risks of this powerful technology. The challenge for international stability will be to adapt existing arms control frameworks and develop new norms to prevent an unregulated AI arms race that could destabilize global security.

AI as the Engine of Economic Power and Influence

Beyond its military implications, AI is fundamentally reshaping the global economic landscape, creating new avenues for wealth creation, disrupting traditional industries, and fostering technological dependencies that will redefine international economic power by 2035. The economic race for AI dominance is as critical as the military one, with national prosperity and global influence inextricably linked to AI innovation and adoption.

Unlocking Productivity and Fostering New Industries

AI’s capacity for automation, optimization, and predictive analytics promises unprecedented gains in productivity across nearly every sector. From manufacturing and logistics to healthcare and finance, AI is streamlining operations, reducing costs, and enhancing efficiency. Factories are becoming “smart,” supply chains are optimizing themselves in real-time, and diagnostic tools are surpassing human capabilities. This surge in productivity can translate into significant economic growth for nations that successfully integrate AI into their industrial base. Concurrently, AI is giving birth to entirely new industries and business models, from AI-as-a-service platforms to personalized medicine and intelligent infrastructure. Nations that lead in these emerging sectors will capture substantial economic value, fostering job creation in high-skilled areas, even as AI automates routine tasks. However, this economic transformation is not without its challenges, including the potential for significant job displacement in traditional industries and the widening of the wealth gap if not managed with proactive policies. By 2035, nations that successfully navigate these transitions, harnessing AI for broad-based economic prosperity, will solidify their positions in the global economic hierarchy.

Data: The New Geopolitical Commodity

In the digital age, data has emerged as a crucial geopolitical commodity, comparable to oil in the industrial era. AI systems are insatiably data-hungry, making access to vast, diverse, and clean datasets a strategic national asset. Nations with large populations, pervasive digital infrastructures, and fewer data privacy constraints (or different approaches to them) can generate and leverage enormous amounts of data, providing a fertile ground for AI development. This gives countries like China a significant advantage in training robust AI models. However, the value of data is not solely in its volume but also in its quality, diversity, and the ability to convert it into actionable insights. Control over data flows, data storage, and data processing capabilities is becoming a new form of national power. Debates around data localization, data sovereignty, and cross-border data transfer agreements are now central to international trade and technology policy. Countries with strong data governance frameworks that balance innovation with privacy, alongside robust data infrastructure, will be better positioned to leverage this “new oil” for economic and strategic gains by 2035. The ability to control, analyze, and ethically utilize data will be a cornerstone of economic influence.

Technological Dependencies and Global Supply Chains

The development and deployment of advanced AI systems rely on complex global supply chains, particularly for high-end semiconductors, specialized software, and rare earth minerals. This interdependence creates both opportunities for collaboration and significant vulnerabilities. Nations that control critical nodes in these supply chains—such as the design and manufacturing of advanced AI chips (e.g., TSMC in Taiwan, Intel, Samsung), or the development of foundational AI software platforms—wield immense economic and geopolitical leverage. The ongoing competition over semiconductor manufacturing capabilities, for instance, underscores this strategic importance. A disruption in this supply chain, whether due to geopolitical tensions, natural disaster, or cyberattack, can cripple a nation’s AI ambitions. By 2035, countries will be acutely aware of these dependencies, leading to strategies aimed at fostering domestic production, diversifying supply sources, or forming strategic alliances to secure access to critical components. This struggle for technological autonomy and resilience will profoundly shape trade relationships, investment patterns, and the formation of techno-economic blocs, influencing who holds the reins of global economic power.

The Geopolitical Power of AI-Driven Corporations

In the AI era, large multinational technology corporations are not just economic actors; they are increasingly becoming significant geopolitical players. Companies like Google, Amazon, Microsoft, Meta, Tencent, and Alibaba possess immense computational power, vast data reserves, and some of the world’s leading AI talent. Their influence extends beyond national borders through their products, platforms, and infrastructure. These tech giants often shape global digital norms, influence public discourse, and even engage in forms of ‘digital diplomacy.’ Their research labs often drive cutting-edge AI breakthroughs, which can then be commercialized or even adopted by national governments. The decisions made by these corporations—whether to cooperate with certain governments, develop particular technologies, or adhere to specific ethical guidelines—can have far-reaching geopolitical consequences. Governments face the complex task of regulating these powerful entities while simultaneously leveraging their innovative capabilities. By 2035, the interplay between nation-states and AI-driven multinationals will be a defining feature of global power dynamics, with corporate decisions potentially impacting everything from national security to economic stability and the very fabric of digital society.

Societal Transformation and the Imperative of Global Governance

The impact of AI extends beyond the realms of military and economics, profoundly influencing societies internally and demanding new frameworks for global governance. As AI becomes more pervasive, its effects on public trust, social cohesion, human rights, and ethical norms will become central to a nation’s stability and its capacity to exert influence on the world stage.

AI’s Influence on Internal Stability and Public Trust

Within national borders, AI presents a dual-edged sword for internal stability. On one hand, AI can enhance public services, improve law enforcement through predictive policing (though this raises ethical concerns), and optimize urban management. On the other hand, AI-powered surveillance technologies, such as facial recognition and sentiment analysis, raise profound questions about privacy, civil liberties, and the potential for authoritarian control. Nations that deploy these technologies extensively, such as China with its social credit system, demonstrate AI’s capacity to monitor and influence citizen behavior, bolstering state control but potentially eroding fundamental freedoms. Furthermore, the proliferation of AI-generated disinformation and “deepfakes” poses a severe threat to public trust in institutions, democratic processes, and media integrity. These technologies can manipulate public opinion, exacerbate social divisions, and interfere with elections. Addressing job displacement caused by AI-driven automation and ensuring equitable access to the benefits of AI are also critical for preventing social unrest and maintaining stability. By 2035, a nation’s ability to manage these internal challenges, balancing innovation with democratic values and social equity, will be crucial for its long-term resilience and its attractiveness as a global partner.

Establishing Ethical Frameworks and International AI Norms

The rapid advancement of AI necessitates robust ethical frameworks and international norms to guide its development and deployment. Without common principles, the global AI landscape risks becoming a chaotic arena driven by national self-interest, potentially leading to harmful outcomes. Divergent ethical approaches are already evident: Western democracies tend to emphasize human-centric AI, transparency, accountability, and fairness, often leading to stringent regulations like the EU’s General Data Protection Regulation (GDPR) and its proposed AI Act. In contrast, some authoritarian regimes prioritize national security and social control, viewing AI as a tool for governance and surveillance. The challenge lies in harmonizing these disparate views to establish global consensus on critical issues, such as the regulation of autonomous weapons, data privacy, algorithmic bias, and accountability for AI systems. International organizations, civil society groups, and academic institutions are actively working to forge such norms, but progress is slow and often hampered by geopolitical rivalries. By 2035, the nations that successfully champion and adhere to responsible AI development, fostering trust and cooperation, are likely to gain significant ‘soft power’ and moral authority, influencing the trajectory of global AI governance.

Human-Machine Teaming and the Future of Decision-Making

AI is not just automating tasks; it’s augmenting human cognitive abilities, leading to new paradigms of decision-making in governance, business, and military operations. Human-machine teaming, where AI systems assist human experts in complex analysis and strategic planning, is becoming increasingly prevalent. For national leaders and policymakers, AI can provide real-time insights into complex global issues, model potential outcomes of policy decisions, and even suggest diplomatic strategies. This raises questions about the future of human expertise: how do leaders maintain critical thinking skills when relying on AI? How do they ensure that AI advice is unbiased and reflects national values? The integration of AI into high-stakes decision-making processes carries both immense potential for optimizing outcomes and inherent risks if AI systems are flawed, hacked, or misunderstood. By 2035, nations that master the art of effective human-machine teaming, integrating AI responsibly into their strategic thinking and governance structures, will likely possess a significant advantage in navigating an increasingly complex and interconnected world, influencing global discourse through more informed and adaptive policy-making.

Regional AI Dynamics and Emerging Power Blocs

The global race for AI supremacy is not monolithic; it is characterized by distinct regional strategies, strengths, and weaknesses. The interplay of these regional dynamics will fundamentally reshape existing alliances and create new power blocs by 2035, as nations jockey for positions in the AI-driven world order.

The United States: Innovation Hub and Regulatory Challenge

The United States stands as a global leader in AI innovation, driven by its vibrant private sector, world-class universities, and a culture of entrepreneurship. American tech giants like Google, OpenAI, Microsoft, and NVIDIA are at the forefront of AI research and development, setting global trends in areas such as large language models and advanced semiconductor design. The US benefits from significant venture capital investment, a diverse talent pool (often attracting top minds globally), and robust computing infrastructure. However, the US also faces challenges. Its fragmented regulatory landscape, compared to a more coordinated national effort, can sometimes hinder a unified strategic approach. Debates around data privacy, ethical AI, and the responsible deployment of AI in sensitive areas like defense are ongoing. By 2035, the US aims to maintain its technological edge through continued investment in research, talent development, and strategic international partnerships, particularly with like-minded democracies. Its ability to balance innovation with ethical governance will be crucial in solidifying its leadership and influencing global AI norms.

China: State-Led Ambition and Ethical Complexities

China has declared its ambition to be the world leader in AI by 2030, backed by a comprehensive state-led strategy, massive government funding, and an unparalleled ability to collect and process data from its vast population. Chinese tech giants like Baidu, Alibaba, Tencent, and Huawei are making rapid strides, especially in areas like facial recognition, smart cities, and e-commerce. China’s strengths lie in its top-down approach, allowing for swift policy implementation and large-scale data collection, often with fewer privacy constraints than in Western democracies. This enables faster training of certain AI models. However, China faces challenges in semiconductor manufacturing, relying heavily on foreign technology for advanced chips, and its approach to AI ethics, often seen as prioritizing state control over individual freedoms, raises concerns internationally. By 2035, China’s progress in AI will undoubtedly make it a formidable technological and economic power, potentially challenging the existing global order and offering an alternative model for AI governance centered on national security and social stability rather than liberal democratic values. The deepening technological rivalry between the US and China, particularly over AI, will be a defining feature of geopolitics.

The European Union: Values-Driven Regulation and Strategic Autonomy

The European Union, while not currently matching the US or China in raw AI investment or leading tech giants, is positioning itself as a global leader in ethical and human-centric AI. With its landmark GDPR and the proposed AI Act, the EU is setting a global benchmark for AI regulation, emphasizing data protection, transparency, and accountability. This ‘Brussels Effect’ aims to export its values globally by influencing international standards. The EU possesses a strong research base, particularly in fundamental AI research, and a commitment to fostering a unified digital single market. Its challenge lies in translating research excellence into commercial success, scaling up its tech companies, and fostering a robust ecosystem for AI startups. The pursuit of “strategic autonomy” in technology is also a key driver, aiming to reduce dependence on non-EU tech giants. By 2035, the EU hopes to leverage its regulatory power and ethical leadership to shape global AI governance, creating a third path distinct from the American market-driven approach and the Chinese state-centric model. Its success will depend on its ability to balance strong regulation with agile innovation.

Other Key Players and the Broadening Digital Divide

Beyond the “big three,” several other nations are making significant strides in AI, each with unique strengths and strategic priorities. Russia, for instance, focuses heavily on military AI and cyber capabilities, leveraging its strong scientific base. India, with its vast pool of IT talent and growing digital infrastructure, has the potential to become a major AI service provider and developer. Countries like Canada, Israel, and the UK also have vibrant AI research communities and innovative startups. However, the global AI landscape is characterized by a widening digital divide. Many developing nations lack the necessary infrastructure, talent, data access, and financial resources to meaningfully compete in the AI race. This disparity risks exacerbating existing global inequalities, creating a world where a few AI-rich nations dictate the terms of economic and technological advancement, while others struggle to keep pace. By 2035, the ability of these “middle powers” to either carve out niche AI strengths or form alliances with leading AI nations will determine their relative influence, while the global digital divide will become an even more pressing challenge for international cooperation and development.

Pathways to 2035: Scenarios and the Role of Diplomacy

As the world hurtles towards 2035, the trajectory of AI’s impact on global power is not predetermined. It will be shaped by the strategic choices made today, the degree of international cooperation or competition, and the ethical frameworks that ultimately govern its deployment. Experts envision various scenarios, from optimistic collaboration to intensified geopolitical rivalries, underscoring the critical role of proactive policy and diplomacy.

Scenarios: From Collaborative Futures to Intensified Competition

One optimistic scenario for 2035 envisions a future where nations recognize the shared benefits and existential risks of AI, leading to robust international cooperation. This could manifest in joint research initiatives on AI safety, global agreements on autonomous weapons, harmonized ethical guidelines, and collaborative efforts to leverage AI for addressing global challenges such as climate change, pandemics, and sustainable development. In this scenario, AI acts as a unifier, fostering shared prosperity and security. However, a more pessimistic, yet equally plausible, scenario involves an intensified AI arms race and technological nationalism. Here, countries prioritize unilateral AI development, view AI capabilities as zero-sum games, and engage in aggressive competition for data, talent, and computational resources. This could lead to a fragmentation of global AI standards, increased cyber warfare, AI-driven proxy conflicts, and a deepening of geopolitical divides, potentially pushing the world towards a new Cold War dynamic. A hybrid scenario is perhaps the most likely, characterized by selective cooperation in areas of common interest (e.g., AI safety) interspersed with intense competition in strategic domains (e.g., military AI, economic leadership). In this future, shifting alliances and techno-economic blocs emerge, where power is wielded through control over AI infrastructure and intellectual property, rather than solely through traditional military might. The specific balance between cooperation and competition will dictate the shape of the global order by 2035.

The Urgent Need for Proactive Policy and Global Diplomacy

Given the profound and varied implications of AI, the need for proactive policy-making and sophisticated global diplomacy is paramount. Waiting for AI’s full impact to unfold before reacting is a perilous strategy. Governments must develop comprehensive national AI strategies that encompass research and development, talent cultivation, ethical guidelines, regulatory frameworks, and international engagement. This requires foresight, interdisciplinary collaboration between technologists, ethicists, policymakers, and diplomats. On the international stage, existing multilateral institutions need to adapt, or new ones must be forged, to address the unique challenges of AI. Diplomacy will be crucial in building bridges between nations with divergent AI philosophies, negotiating international agreements on sensitive topics like autonomous weapons and data governance, and fostering responsible innovation. Countries that demonstrate leadership in shaping these international norms, advocating for a human-centric and safe AI future, will gain significant diplomatic influence. By 2035, the global balance of power will not only be determined by who possesses the most advanced AI but also by which nations successfully navigate the complex ethical and governance challenges, demonstrating a commitment to global stability and human well-being. The window for establishing these foundational frameworks is closing, making the current decade a pivotal moment in shaping the AI-driven future.

Conclusion: Shaping the AI-Driven Global Future

The trajectory of Artificial Intelligence is undeniable, and its profound impact on the global balance of power by 2035 is a near certainty. From revolutionizing military capabilities and reshaping economic hierarchies to transforming societal structures and challenging fundamental ethical norms, AI is the defining technological force of our era. The competition for AI supremacy—driven by access to data, talent, and computational power—is the new arms race, with nations like the United States, China, and the European Union adopting distinct strategies that will forge new geopolitical blocs and intensify existing rivalries.

The experts’ consensus points to a future where traditional metrics of power are augmented, if not superseded, by technological prowess. Military advantage will hinge on AI-driven autonomy and intelligence; economic leadership will flow from AI-fueled productivity and innovation; and societal stability will depend on adeptly managing AI’s internal pressures while harnessing its benefits responsibly. The ethical dilemmas posed by autonomous weapons and pervasive surveillance demand urgent global governance, yet the path towards consensus remains fraught with divergent values and national interests.

As 2035 draws nearer, the decisions made today will determine whether AI becomes a force for unprecedented global cooperation and shared prosperity or a catalyst for escalating competition and instability. The imperative is clear: to understand the intricate nuances of AI’s transformative power, to proactively shape its development through enlightened policy and diplomacy, and to foster a global environment where innovation is balanced with responsibility. The future of the international order, and indeed of humanity, will largely be written in the algorithms and applications of Artificial Intelligence.

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