June 5, 2025

THE ALGORITHM'S COLD WAR

Geopolitics of Artificial Intelligence: The Race for Power and Europe's Challenge.

AI supremacy is the new battleground between the United States and China. While the superpowers accumulate talent and capital, Europe must find its own strategy to avoid being left on the sidelines.

In the hyperconnected and hyper-digitalized world of the 21st century, dominance in artificial intelligence is becoming the new geopolitical arena for global superpowers. The United States and China are openly competing in the race to control what is considered the most powerful technology of our time—an area where scientific innovation, industrial power, economic dominance, and cultural influence all converge. In this scenario, Europe still appears to be searching for a credible trajectory to avoid becoming a passive bystander in a revolution that could redefine global balances, markets, and rights.

The New Algorithmic Cold War

The rivalry between Washington and Beijing is not only technological but also economic and strategic. The two powers are competing not just for markets, but also for supremacy in computing power. In the United States, the innovation system is built on a well-established network of large companies, research centers, and universities that operate in synergy with massive private capital. Some of the sector's leading players have explicitly declared their mission to build artificial general intelligence—AI systems equal to or superior to human intelligence.

China, by contrast, pursues a different model, one that is strongly state-driven and focused on technological self-sufficiency.

THE ALGORITHM'S COLD WAR

Europe and the Strategic Challenge

In this superpower contest, Europe appears structurally less competitive. Its industrial capabilities, availability of capital, and appeal to talent lag behind those of the U.S. and China. Internal market fragmentation, regulatory complexity, and a lack of unified vision hinder the development of an integrated AI ecosystem.

Nonetheless, European strategic thinking is beginning to coalesce around several key directions: strengthening digitalization among traditional players, supporting niche industrial sectors, mobilizing capital, and attracting external expertise. The goal is to create a favorable environment for technological development without merely replicating external models. Simplifying administration and removing regulatory barriers are key factors in making the continent more competitive.

Rules, Ethics, and Critical Education

A distinctive element of Europe’s response is the emphasis on regulation. The regulatory approach aims to ensure that AI systems respect fundamental rights, safety, and transparency. The so-called AI Act introduces specific obligations for providers and users of AI systems, with a strong focus on discrimination risks and systemic impacts.

Alongside legislation, Europe has promoted the establishment of ethical principles through documents such as the declaration of digital rights. Ethics are seen as a preventive resource against phenomena such as disinformation, data misuse, or social exclusion. The regulations aim to prevent automated decisions based on illegitimate criteria—such as race, gender, sexual orientation, or religion—and to guarantee oversight mechanisms over AI systems.

Education and Cognitive Inequality

Another critical issue is accessibility. Advanced use of AI requires expensive infrastructure, specialized hardware, and high-level skills, creating a gap between those who control the technology and those who are affected by it without adequate tools.

The risk is the emergence of a new form of inequality—the "critical divide"—that reinforces asymmetric power dynamics. Addressing this scenario requires the promotion of widespread critical education. This is not just about teaching how to use tools but about developing the ability to analyze, interpret, and assess automated decisions.

The ultimate goal is to avoid excessive reliance on AI systems that could diminish the cognitive, technical, and cultural competencies of the population.