Artificial intelligence is no longer just an emerging technology or a futuristic topic for discussion. It has become a central force reshaping the global economy, governance models, and the balance of geopolitical power.

We are now at a critical moment. AI can either be managed as a tool for development, justice, and the enhancement of strategic independence, or it can be left unchecked, turning into a factor that deepens digital dependency, widens social inequalities, and undermines societal trust.

The question is no longer what AI can do, but who holds decision-making power in its era, who sets the rules that govern it, and who bears the legal, political, and economic consequences of its use.

From technological optimism to testing real value

In recent years, a hopeful narrative dominated, portraying AI as a near-universal solution to problems of productivity, efficiency, and decision-making.

However, this phase is nearing its end. By 2026, AI has entered what can be called the “proof stage,” where technical fascination is no longer enough. The standard now is delivering measurable, sustainable value in the real world.

Recent analyses indicate that a large number of AI projects have failed to move from experimentation to real impact. This has forced governments and companies to reassess their bets, as initial expectations were often exaggerated, and when tested, projects fell short of ethical, human, or regulatory standards.

According to recent reports, the coming years will witness a clear division between initiatives that achieve genuine economic and regulatory impact and those that will fade or be canceled due to lack of viability.

AI as a geopolitical issue

AI development is no longer a purely technical matter; it has become an arena of open geopolitical competition. In 2025, the United States, China, and the European Union adopted different models reflecting their priorities in economic power, national security, and global influence.

The United States has relied on the dynamism of the private sector and large corporations, aiming to spread its technologies globally to set standards and assert dominance. In contrast, China follows a centralized model, integrating AI into the state’s sovereign infrastructure and making massive investments to achieve self-sufficiency in chips and computing. The U.S. has attempted to counter this through tariffs on Chinese companies to limit productivity and maintain American dominance in the smart technology sector.

Europe, meanwhile, is attempting a third path, balancing innovation and regulation, placing the protection of rights and values at the core of its strategy, even if this sometimes slows the pace of adoption.

In this context, AI is no longer just a production tool. It has become a means of influence akin to energy or strategic trade.

From data dominance to computing sovereignty

Data has long been described as the oil of the digital age. However, this phrase no longer fully captures the new reality. Practical experience has shown that data alone does not create value without advanced computing capabilities to process it and turn it into knowledge and actionable decisions.

Today, control over advanced chips, data centers, cloud infrastructure, and foundational AI models has become a matter of sovereign importance. This topic will be a key focus this year. It is no longer just the domain of IT departments; it is directly linked to national security, economic independence, and resilience during crises, particularly in critical sectors such as healthcare and security.

Digital sovereignty: A concept beyond slogans

Digital sovereignty does not mean isolation from the world or rejecting international cooperation. Rather, it means having the ability to choose and control. It is the capacity of a state or regional bloc to manage its data, digital infrastructure, and critical technologies without relying on external actors in ways that could become tools of political or economic pressure.

The importance of this concept is amplified because the digital infrastructure has become the backbone of vital sectors, from energy and healthcare to transportation, government services, and security. Any disruption or external control over this infrastructure could cause widespread paralysis, turning smart technologies into internally directed weapons without us even realizing it.

The rise of sovereign clouds and the redrawing of alliances

In response to these challenges, there is an accelerating trend toward establishing sovereign AI clouds. Recently, many countries have refused to rely on servers outside their legal and political control to protect national security.

At the same time, new alliances are emerging between advanced AI labs and governments. These partnerships exchange market access for the development of national or regional capabilities. They are redefining the traditional public-private sector relationship and may even reshape the concept of sovereignty itself in the digital age.

Regulation as a strategic lever, not a constraint

Contrary to popular perception, regulation is no longer necessarily an obstacle to innovation. Modern experiences show that smart, adaptive regulation can become an enabling factor by building trust, attracting investment, and providing a stable environment for responsible experimentation.

For example, the UAE recently issued a white paper on the sidelines of the 56th Annual Meeting of the World Economic Forum in Davos, titled “Shaping the Future of Regulatory Intelligence: From Static Rules to a Dynamic AI-Driven Regulatory System.” This paper presents a comprehensive vision for transforming regulation from a static document into a living system that is managed, tested, learns, generates actionable insights, and predicts and addresses issues before they arise.

The real challenge lies in moving from rigid regulation to flexible, updatable frameworks, and from reactive responses to proactive measures, allowing the protection of rights without stifling creativity.

Where do arab states stand?

Despite national strategies and ambitious initiatives, most Arab states still rely, to varying degrees, on foreign AI infrastructure and models, lacking independent research and development systems with global impact.

However, this does not mean there are no options. Regional cooperation, building shared computing and data platforms, unifying research efforts, and implementing smart public procurement policies can create a realistic path to gradually enhancing digital sovereignty. This will not happen through isolated efforts but through collective action to share the costs of development, data storage, and innovation.

Conclusion: The window for leadership is not open forever

We are at a decisive moment. AI can be a driver of growth and development, a tool for deepening digital dependency, or a means of redistributing global power.

States and institutions that act now, treating regulation and digital sovereignty as strategic tools, will help shape the rules of the next digital order—and the future of the economy and politics. Those who lag behind will find themselves merely following decisions made by others.

The moment of reckoning has begun. The question for decision-makers is no longer whether we will participate—but how, when, and with what vision.

Legal and social advisor, expert in international law, researcher in AI technologies and cybersecurity.