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AI Standard Choices Under Geopolitical Competition

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  • Sangjun YEA

    (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP))

Abstract

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.

Suggested Citation

  • Sangjun YEA, 2025. "AI Standard Choices Under Geopolitical Competition," World Economy Brief 25-28, Korea Institute for International Economic Policy.
    • Handle: RePEc:ris:kiepwe:022499
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