Navigating the Global Algorithm Economy: Implications for Bosnia and Herzegovina’s Geopolitical Landscape

This study explores the implications of the global algorithm economy on Bosnia and Herzegovina's (BiH) geopolitical landscape, focusing on the strategic competition between the United States (US) and the People's Republic of China (PRC) in artificial intelligence (AI) development.As AI technologies rapidly evolve, they reshape economic value and global power dynamics.The US and the PRC, as leaders in AI innovation, are at the forefront of this transformation, influencing international relations and positioning smaller nations like BiH in complex geopolitical scenarios.This research investigates the ripple effects of the global AI rivalry on BiH's data sovereignty, political discourse, and public policy through a mixed-methods approach, including an analysis of the AI machine learning value chain and semi-structured interviews with key informants.The findings highlight significant challenges for BiH in leveraging AI for national growth but underscore opportunities for improvement through strategic investments and coherent data management strategies.The study concludes with recommendations for BiH to proactively address these challenges, emphasising the importance of understanding regional dynamics and aligning with global AI standards.