AI firms cluster in rich countries, and mostly build apps

A new global database maps 1,246 AI firms across 32 countries. It turns out most AI production is concentrated in the US and China, with other countries specializing in only a few parts of the AI supply chain.

Everyone assumed that AI development would spread globally, but this paper shows that it is highly concentrated. Most countries are only building the final applications, not the underlying infrastructure or models. This means that the economic benefits of AI will likely remain concentrated in a few major economies.