World Economy Brief
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World Economy Brief
AI Standard Choices Under Geopolitical Competition
- Author Sangjun YEA
- Series25-28
- Date2025-10-23
This study examines how global competition over artificial intelligence (AI) standards is unfolding amid growing geopolitical rivalry between the United States and China. It develops a theoretical model to analyze how a third country decides whether to align its domestic AI standard with the U.S. or Chinese framework once both standards exist. The analysis highlights that the choice depends primarily on global and local network effects, market competition, and the role of domestic platforms intermediating AI services. The findings suggest that the technological superiority of foundation AI models and the expanding global user base are key determinants of international standards adoption, implying that AI standardization has become a strategic domain of global economic and political competition.
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