Geopolitics of Artificial Intelligence: Development & Regulation in the Age of AI Race

Abstract: AI, like any other emerging and disruptive technology, holds the potential to transform society both positively and negatively. Using a game theory framework, this paper examines the geopolitical implications of AI development and its weaponization, arguing that the strategic pressures driving AI development create a self-reinforcing cycle that undermines any comprehensive regulations of AI. Looking at similarities to the nuclear arms race, unrestrained AI development highlights the risks and the urgency of addressing them. The paper concludes that comprehensive global regulation may most likely emerge only after significant adverse impacts of the AI will be witnessed, highlighting the critical need for international cooperation to address weaponization of AI before it escalates further.