How the global AI race is reshaping power, and why Africa matters more than ever

Whe The Observer released its 2025 Global AI Index, ranking 93 countries according to their artificial intelligence capabilities, the findings sent ripples through governments, boardrooms and university laboratories around the world. Now regarded as one of the most influential measures of digital power, the index delivers a stark message: in the age of AI, competitiveness is being rewritten at extraordinary speed.

Across continents, countries are scrambling for advantage, not only in technological capability but in their ability to convert AI into economic growth, political influence and global leadership. Between the established superpowers and the fast-rising innovators sits a continent that has too often been overlooked in the digital race. Yet the latest index suggests Africa's position is beginning to shift.

A global race dominated by giants

The top of the table holds few surprises. The United States retains the number one position with a perfect score, reinforcing its status as the world's pre-eminent AI power. From Silicon Valley's multi-billion-dollar laboratories to large-scale federal investment, the US leads across research, infrastructure and talent.

China follows closely behind, maintaining formidable momentum through a clear national strategy, vast data ecosystems and rapid deployment of AI technologies. It remains firmly within striking distance of the global leader.

Further down the rankings, a cluster of digitally sophisticated nations continues to gain ground. Singapore, the United Kingdom, South Korea and Taiwan have built strong positions through targeted public investment, assertive policymaking and highly developed start-up ecosystems. These standings are more than statistical curiosities. They offer a real-time map of how global power is evolving.

The widening divide

Beyond the headline rankings lies a more sobering narrative. The gap between the leading countries and the rest of the world is widening. Those at the top share common strengths: substantial research output, vibrant start-up environments, resilient digital infrastructure and close coordination between government, academia and the private sector.

Countries with fewer resources or slower policy responses are slipping further behind. It is here that Africa's challenge comes into sharper focus.

Africa's position: potential under pressure

For years, Africa's place in global technology indices has been framed largely in terms of promise rather than performance. The 2025 Global AI Index presents a more nuanced picture. While deep structural obstacles remain, several African countries are now establishing credible footholds in artificial intelligence.

Egypt leads the continent in 47th position, followed by South Africa at 54th and Ghana at 61st. Algeria, Morocco, Nigeria, Mauritius, Kenya, Senegal and Côte d'Ivoire also feature in the rankings, each reflecting varying degrees of progress under difficult conditions.

These countries differ widely in size, income and political context, but they share a common thread. Each is advancing despite constraints in infrastructure, investment and access to skilled talent.

Egypt: an emerging regional powerhouse

Egypt's position as Africa's highest-ranked country marks a significant shift. Universities in Cairo are producing increasingly robust research output, while government-led digital strategies are accelerating the use of AI across banking, education and public services.

Egypt's experience underlines a critical lesson. When policy alignment and investment in skills converge, tangible results can follow even in resource-constrained environments.

South Africa: strong foundations, fragile momentum

South Africa remains one of the continent's most sophisticated markets, underpinned by established universities and a growing AI business community. However, the country faces mounting challenges. Skilled professionals continue to emigrate, and research and development spending has struggled to keep pace with global trends.

The foundations remain solid, but without renewed commitment South Africa risks losing ground rather than consolidating its early advantages.

Ghana: punching above its weight

Ghana stands out as one of the index's most compelling African stories. Ranked 61st globally, it has built momentum through an active technology community, government-driven digital reforms and partnerships with international AI institutions.

Its performance illustrates what is possible when policy agility is matched with ambition. For many African countries, Ghana offers a practical blueprint rather than an abstract ideal.

Structural constraints remai

Despite encouraging signs, the index is unambiguous about the scale of Africa's challenges. As a region, the continent scores lowest on research capacity, innovation ecosystems and digital infrastructure.

Limited access to high-performance computing, a small number of AI research institutions, chronically low venture capital funding and uneven electricity and broadband coverage all continue to impede progress. At the same time, the skills gap is widening faster than it is being closed.

The index does more than assess performance. It exposes the structural forces that will shape Africa's digital future.

A roadmap for progress

The rankings are not destiny. They represent a call to action. The data points towards several clear priorities. Africa must invest decisively in AI education and talent if it is to build a sustainable pipeline of engineers, researchers and data scientists. Research hubs and innovation clusters need to be expanded, as experience in countries such as Kenya and Ghana has shown that innovation accelerates where talent is concentrated.

Equally important is the strengthening of start-up ecosystems. AI entrepreneurship depends on access to capital, clear regulation and support structures that encourage innovators to build at home rather than relocate abroad. Infrastructure constraints must also be addressed. Reliable electricity, broadband connectivity and access to advanced computing are no longer optional. They are fundamental requirements.

Finally, regional collaboration could prove transformative. A coordinated African approach that pools data, talent and resources would significantly enhance the continent's competitive position.

A defining moment

The 2025 Global AI Index is more than a league table. It reflects the ambitions and priorities shaping the global economy. The leaders are accelerating, while those at the bottom are struggling against structural headwinds. Africa now stands at a pivotal moment.

The continent has talent, creativity and entrepreneurial energy. What it requires is sustained coordination, long-term investment and strategic vision. If the right choices are made today, Africa's AI narrative need not be one of catching up. Instead, it could become a story of leadership in the practical application of AI across education, agriculture, healthcare, finance and governance.

Source: The Observer Global AI Index 2025